Document background
The Acquisition Purchase Agreement serves as the primary transaction document for business acquisitions in Indonesia, whether for share purchases or asset acquisitions. This document is essential when one entity intends to acquire ownership of another company or its assets within the Indonesian jurisdiction. It must comply with Law No. 40 of 2007 on Limited Liability Companies, Law No. 25 of 2007 on Investment, and other relevant Indonesian regulations. The agreement typically includes detailed provisions on purchase price mechanisms, conditions precedent (including regulatory approvals), representations and warranties, pre-closing covenants, and post-closing obligations. It is particularly important to address specific Indonesian regulatory requirements, such as foreign ownership restrictions, mandatory language requirements, and sector-specific regulations that may affect the transaction structure.
