Rent Guarantee Agreement Template for Indonesia

The Rent Guarantee Agreement serves as a critical security instrument in Indonesian property transactions, providing landlords with additional protection against tenant default. This document is typically used when a landlord requires extra security beyond the standard lease deposit, or when a tenant's financial standing necessitates additional assurance. The agreement must comply with Indonesian Civil Code (KUHPerdata) requirements for guarantees and property law, including specific provisions for witness signatures and notarization where required. The document outlines the guarantor's obligations, enforcement procedures, and the scope of the guarantee, making it essential for both commercial and residential property transactions where enhanced tenant security is needed.

1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor including their legal names, addresses, and registration numbers if applicable

2. Background: Explains the context of the agreement, referring to the main lease agreement and the need for a guarantee

3. Definitions: Defines key terms used throughout the agreement including 'Lease Agreement', 'Guaranteed Obligations', 'Property', etc.

4. Scope of Guarantee: Details the extent of the guarantee and specific obligations being guaranteed

5. Guarantor's Obligations: Specifies the guarantor's primary obligations and commitments

6. Duration of Guarantee: Establishes the time period for which the guarantee remains valid

7. Payment Terms: Outlines when and how the guarantor must make payments upon default by the tenant

8. Enforcement: Describes the process for enforcing the guarantee and the landlord's rights

9. Representations and Warranties: Contains statements of fact and promises made by the guarantor

10. Notices: Specifies how formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

12. Execution: Signature blocks and execution formalities