The Lease and License Agreement serves as a crucial document in Indonesian property transactions, providing a comprehensive framework for property usage while ensuring compliance with local regulations. This document is particularly relevant when parties need to establish both occupancy rights and operational permissions within Indonesian jurisdiction. It is commonly used for commercial, industrial, or retail properties where the tenant requires both physical space and specific authorizations to conduct their business. The agreement must comply with the Indonesian Civil Code, Basic Agrarian Law, and relevant property regulations, while addressing key aspects such as rent, maintenance obligations, permitted use, and regulatory compliance. This document type is especially important in contexts involving foreign investment, as it must incorporate specific provisions required under Indonesian investment laws.
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1. Parties: Identification of the lessor/licensor and lessee/licensee, including their legal status and authorized representatives
2. Background: Context of the agreement, including property details and purpose of the lease and license
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Lease and License: Specific details of what is being leased and licensed, including the scope of permitted use
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Rent and License Fees: Payment terms, amounts, schedules, and review mechanisms
7. Security Deposit: Amount, terms, and conditions for return of the security deposit
8. Utilities and Services: Responsibilities for utilities, maintenance, and essential services
9. Use and Occupation: Permitted uses, restrictions, and compliance requirements
10. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
11. Insurance and Liability: Required insurance coverage and allocation of risks
12. Assignment and Subletting: Restrictions and conditions for transfer of rights
13. Default and Termination: Events of default, remedies, and termination procedures
14. Return of Property: Conditions and procedures for returning the property
15. Governing Law: Specification of Indonesian law as governing law
16. Dispute Resolution: Procedures for resolving disputes
17. Notices: Methods and addresses for official communications
18. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Building Rules and Regulations: Applicable when the property is part of a larger building or complex
2. Fit-out Works: Include when tenant improvements or modifications are permitted
3. Common Areas: Required when the property includes shared facilities or spaces
4. Property Management: Needed when there's a property manager or management company involved
5. Environmental Compliance: Important for industrial or commercial properties with environmental impacts
6. Force Majeure: Detailed force majeure provisions for high-value or critical facilities
7. Additional Services: When lessor provides additional services beyond basic lease obligations
8. Foreign Investment Provisions: Required when lessee is a foreign entity, addressing investment law compliance
1. Property Description: Detailed description of the property including floor plans and boundaries
2. Rent and Payment Schedule: Detailed breakdown of rent, license fees, and payment terms
3. Service Charges: Breakdown of service charges and calculation method
4. Condition Report: Initial condition of the property and inventory of fixtures/fittings
5. Permitted Uses: Detailed list of permitted activities and use restrictions
6. Maintenance Schedule: Detailed maintenance responsibilities and schedules
7. Insurance Requirements: Specific insurance requirements and minimum coverage amounts
8. Building Rules: Detailed building rules and regulations if applicable
9. Form of Bank Guarantee: Template for bank guarantee if required as security
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