Tenancy Agreement Template for Indonesia

A Tenancy Agreement is a fundamental legal contract that establishes the rental relationship between property owners and tenants in Indonesia. Under Indonesian Civil Code (KUHPerdata) and housing regulations, this document serves as your primary legal protection, clearly defining rental terms, payment schedules, and the rights and responsibilities of both parties throughout the tenancy period.

When do you need this document?

You need a Tenancy Agreement whenever you're renting or leasing property in Indonesia, whether for residential or commercial purposes. This includes apartment rentals, house leases, commercial space rentals, and kos (boarding house) arrangements. The document is particularly crucial for foreign tenants who must comply with specific Indonesian regulations, and for any rental arrangement exceeding one year, as required under Indonesian Civil Code provisions on property contracts.

Key legal considerations

Your Tenancy Agreement must address several critical legal elements under Indonesian law. Payment terms should specify rental amounts, security deposits, and utility responsibilities, with clear consequences for late payments. Maintenance obligations must distinguish between landlord and tenant responsibilities, particularly regarding structural repairs versus daily upkeep. The agreement should include termination clauses that comply with Indonesian notice requirements, typically 30 days for residential properties. Property use restrictions are essential, especially for foreign tenants who may face limitations on commercial activities. Insurance requirements, subletting permissions, and dispute resolution procedures should also be clearly outlined to prevent future conflicts.

Legal requirements in Indonesia

Indonesian law imposes specific requirements on tenancy agreements that you must follow for legal validity. Under Law No. 1 of 2011 on Housing and Settlement Areas, residential rental agreements must include proper property identification, rental duration limits, and tenant protection provisions. For foreign tenants, additional documentation may be required, including proper visa status verification and compliance with foreign investment regulations. The agreement must be written in Indonesian (Bahasa Indonesia) or include certified translations for legal enforceability. Security deposits are regulated and typically cannot exceed three months' rent for residential properties. Government Regulation No. 44 of 1994 requires specific clauses regarding property maintenance standards and safety requirements, particularly for multi-unit buildings. Registration with local authorities may be required for long-term leases exceeding one year, and stamp duty obligations must be fulfilled according to Indonesian tax regulations.