Document background
A Standard MoU is commonly used in Indonesian business practice as a preliminary step before entering into binding detailed agreements. This document type is particularly useful when parties wish to formalize their intentions to collaborate while maintaining flexibility during negotiations. The MoU should comply with Indonesian law, including requirements for dual-language documentation when involving foreign parties (as per Law No. 24 of 2009) and basic contractual principles under the Indonesian Civil Code. While generally non-binding, certain provisions such as confidentiality and exclusivity can be made binding. The Standard MoU typically includes sections outlining the scope of proposed cooperation, roles and responsibilities, timelines, and framework for developing definitive agreements. It's particularly valuable for complex transactions, joint ventures, or strategic partnerships where parties need to establish clear parameters for their negotiations while conducting due diligence and developing detailed agreements.
