Document background
The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in asset acquisition transactions in Indonesia. It is typically prepared after initial commercial discussions but before detailed due diligence and definitive documentation. The document serves to memorialize the parties' preliminary understanding of key transaction terms, including asset scope, pricing, payment structure, and critical conditions. While primarily non-binding, it often includes binding provisions on confidentiality, exclusivity, and costs. The term sheet must consider Indonesian legal requirements, including foreign investment restrictions, regulatory approvals, and local corporate law provisions. It forms the basis for negotiating the definitive asset purchase agreement and guides legal due diligence. This document is particularly important in the Indonesian context where clear preliminary agreements help navigate complex regulatory requirements and establish a solid foundation for the transaction.
