Short Term Tenancy Agreement Template for Indonesia

A Short Term Tenancy Agreement is a legally binding contract that establishes the terms and conditions for temporary property rental arrangements in Indonesia. This document provides essential legal protection for both landlords and tenants while ensuring compliance with Indonesian housing laws and regulations. Whether you're renting residential or commercial property for periods typically under one year, having a properly structured agreement protects your interests and clarifies responsibilities.

When do you need this document?

You need a Short Term Tenancy Agreement when establishing any temporary rental arrangement in Indonesia. This includes renting furnished apartments for business assignments, seasonal vacation rentals in tourist areas like Bali or Lombok, temporary accommodation for students or expatriate workers, or short-term commercial space for pop-up businesses or events. The document is particularly important for foreign tenants who must comply with immigration requirements, property managers handling multiple short-term rentals, and landlords seeking to protect their property while maximizing rental income through flexible arrangements.

Key legal considerations

Under Indonesian law, rental agreements must clearly specify the rental period, payment terms, and termination conditions to be legally enforceable. Security deposits are typically equivalent to one to three months' rent and must be properly documented with clear refund conditions. The agreement should include detailed property condition reports, maintenance responsibilities, and procedures for handling damages or disputes. Insurance coverage, utility payment arrangements, and guest policies must be explicitly addressed. For properties in apartment buildings or complexes, compliance with building management rules and homeowner association regulations is mandatory. The document should also specify whether the rental includes furniture, appliances, or other amenities, and outline the condition and inventory of included items.

Legal requirements in Indonesia

Indonesian Civil Code (KUHPerdata) governs all rental agreements, requiring written documentation for terms exceeding one month and establishing fundamental landlord-tenant rights and obligations. Law No. 1 of 2011 on Housing and Settlement Areas mandates that rental properties meet basic habitability standards and safety requirements. Government Regulation No. 44 of 1994 sets technical standards for residential buildings that must be maintained throughout the rental period. For foreign tenants, compliance with immigration laws and visa requirements is essential, and some properties may have restrictions on foreign occupancy. Local building regulations vary by region and must be incorporated into the agreement. Tax obligations, including rental income tax for landlords and potential withholding requirements, should be clearly addressed. The agreement must also comply with regional zoning laws and any applicable short-term rental regulations in tourist areas.