Document background
The Business Purchase Contract serves as the primary legal instrument for documenting the acquisition of a business in Indonesia. It is essential when transferring ownership of a business or its assets from one party to another, whether as a share sale or asset purchase. This document must conform to Indonesian legal requirements, including the Civil Code (KUHPer), Company Law, and Investment Law, particularly regarding foreign ownership restrictions and business licensing requirements. The contract typically includes detailed provisions about the transaction structure, purchase price mechanisms, warranties, indemnities, and conditions precedent. It also addresses crucial aspects such as employee transfers, regulatory approvals, and tax implications specific to Indonesian business transactions. This document is particularly important given Indonesia's complex regulatory environment and the need for clear documentation of business ownership transfers.
