Subtenant Lease Template for Indonesia

A Subtenant Lease agreement is essential when an existing tenant wishes to lease all or part of their rented property to another party in Indonesia. This document is crucial for protecting the interests of all parties involved while ensuring compliance with Indonesian property law and regulations. The agreement must align with the original head lease terms and often requires the head landlord's consent. It should be used whenever a tenant wants to sublease their rented space, whether for commercial or residential purposes. The document includes comprehensive details about the sublease arrangement, including rental terms, maintenance responsibilities, permitted use, and termination conditions. Under Indonesian law, such agreements must comply with the Civil Code (KUH Perdata) and relevant property regulations, and may need to be properly registered with local authorities depending on the jurisdiction and type of property.

1. Parties: Identification of the head tenant (sublessor) and subtenant, including full legal names, addresses, and any registration numbers for companies

2. Background: Context of the sublease, including reference to the head lease and confirmation of authority to sublease

3. Definitions: Definitions of key terms used throughout the agreement, including 'Premises', 'Head Lease', 'Term', and 'Permitted Use'

4. Grant of Sublease: Formal grant of the sublease, specifying the premises and any included facilities or equipment

5. Term and Renewal: Duration of the sublease, commencement date, and any renewal options, ensuring it doesn't exceed head lease term

6. Rent and Security Deposit: Rental amount, payment terms, security deposit requirements, and any scheduled increases

7. Utilities and Service Charges: Responsibility for utilities, maintenance charges, and other operational costs

8. Use of Premises: Permitted use of the premises and any restrictions, consistent with head lease terms

9. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises

10. Alterations and Improvements: Rules regarding modifications to the premises

11. Insurance and Liability: Insurance requirements and allocation of risks

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Grounds for termination and the process to be followed

14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

15. Execution: Signature blocks and execution requirements