The Lease Extension Addendum is a critical document used when parties to an existing lease agreement wish to extend their contractual relationship beyond the original term. Under Indonesian law, this document serves as a formal amendment to the original lease, typically employed when both parties agree to continue their landlord-tenant relationship without executing an entirely new lease. The addendum must comply with Indonesian Civil Code requirements and relevant property regulations, particularly Government Regulation No. 44 of 1994 for residential properties and applicable commercial property regulations. It documents essential information including the extended term, updated rent amounts, and any modified terms while confirming the continuation of other original lease provisions. This document type is commonly used in both commercial and residential contexts across Indonesia, providing a streamlined approach to lease continuation compared to creating a new lease agreement.
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1. Parties: Identification of the Landlord and Tenant as per the original lease agreement, including their complete legal names, addresses, and any registration numbers
2. Background: Reference to the original lease agreement, including its date of execution, current expiry date, and the parties' intention to extend the lease term
3. Definitions: Key terms used in the addendum, including reference to definitions from the original lease that remain applicable
4. Extension Term: Specification of the new extension period, including start and end dates
5. Rent and Payment Terms: Details of the rent applicable during the extension period, including any adjustments or escalations
6. Confirmation of Other Terms: Statement confirming that all other terms and conditions of the original lease remain in full force and effect
7. Governing Law: Confirmation that Indonesian law governs the addendum
8. Execution: Signature blocks for all parties and any required witnesses
1. Security Deposit Adjustment: Include when there are changes to the security deposit amount or terms
2. Renovation or Improvement Terms: Include when the extension involves permissions or obligations for property improvements
3. Additional Rights and Obligations: Include when new terms or conditions are being added that weren't in the original lease
4. Break Clause: Include when parties agree to early termination provisions for the extension period
5. Insurance Requirements: Include when there are changes to insurance obligations during the extension period
6. Condition of Premises: Include when there needs to be documentation of the current state of the premises at extension
1. Schedule 1 - Updated Rent Schedule: Detailed breakdown of rent payments, including any escalations during the extension period
2. Schedule 2 - Property Condition Report: Current condition assessment of the property at the time of extension
3. Schedule 3 - Special Conditions: Any specific terms or conditions applicable to the extension period
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference
5. Appendix B - Powers of Attorney: If applicable, documents proving signing authority for either party
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