Simple Commercial Lease Agreement Template for Indonesia
Generate a bespoke document
What is a Simple Commercial Lease Agreement?
The Simple Commercial Lease Agreement serves as a fundamental legal instrument for commercial property leasing transactions in Indonesia. It is commonly used when businesses need to lease office space, retail locations, or other commercial properties for their operations. This document, governed by Indonesian law including the Civil Code (KUHPerdata) and relevant property regulations, establishes the essential terms of the lease relationship, including rent, duration, maintenance obligations, and permitted use of the premises. It provides necessary legal protection for both landlords and tenants while ensuring compliance with local property laws and business regulations. The agreement is particularly relevant for both domestic and foreign businesses establishing or expanding their presence in Indonesia's commercial real estate market.
About the Simple Commercial Lease Agreement
A Simple Commercial Lease Agreement is your essential legal document for securing commercial property in Indonesia. This contract establishes the binding relationship between you as a tenant and the property owner, defining all terms of your commercial space rental under Indonesian Civil Code and local property regulations.
When do you need this document?
You need this agreement whenever you're renting commercial space for business operations in Indonesia. Whether you're opening a retail store in Jakarta's business district, leasing office space for your startup, or securing warehouse facilities for distribution, this document protects your interests. Foreign businesses entering the Indonesian market particularly benefit from having a properly structured lease agreement that complies with local laws. The document is also essential when renewing existing commercial leases or when property ownership changes hands during your tenancy.
Key legal considerations
Your commercial lease must include specific provisions to ensure legal compliance and protection. The property description should detail exact boundaries, permitted commercial activities, and any restrictions on business operations. Rent escalation clauses need careful attention, as Indonesian law allows for periodic adjustments based on market conditions. Maintenance responsibilities must be clearly divided between you and the landlord, particularly for structural repairs versus day-to-day upkeep. Security deposits and guarantor requirements should align with local banking regulations and business practices. Insurance obligations must specify coverage types and minimum amounts required under Indonesian building laws.
Legal requirements in Indonesia
Indonesian commercial leases must comply with the Civil Code (KUHPerdata) and Building Law No. 28 of 2002, which governs commercial property standards and safety requirements. Your lease term cannot exceed certain limits depending on property type and your business registration status. Foreign-owned businesses may face additional restrictions under investment laws and must ensure their lease supports their business license requirements. The agreement must be executed in Indonesian language for legal validity, though bilingual versions are common for international businesses. Regional Spatial Planning Laws (RTRW) may impose specific zoning restrictions on your intended business use. Ministry of Trade regulations may require additional clauses for certain commercial activities, particularly retail and hospitality businesses.
GOVERNING LAW
Applicable law
This Simple Commercial Lease Agreement is drafted to comply with Indonesia law. Key legislation includes:
Law No. 28 of 2002 on Buildings (UU Bangunan Gedung): Regulates building standards, safety requirements, and permits for commercial buildings
Government Regulation No. 44 of 1994: Specific regulations regarding residential houses and lease agreements, which may apply to mixed-use properties
Regional Spatial Planning Law (RTRW): Local zoning and land use regulations that vary by region and affect commercial property usage
Ministry of Trade Regulation No. 47/M-DAG/PER/6/2017: Regulations regarding commercial building operations and business licensing requirements
Law No. 20 of 2011 on Apartments: Relevant for commercial lease agreements in multi-story buildings or mixed-use developments
Law No. 25 of 2007 on Investment: Regulations regarding foreign investment and property leasing by foreign entities in Indonesia
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it