Document background
The Buyout Agreement serves as the primary transaction document for complete business acquisitions in Indonesia, requiring careful consideration of both civil law principles and specific regulatory requirements. It is used when one party intends to acquire full ownership of a business entity, whether through share purchase or asset acquisition. The document must comply with Law No. 40 of 2007 on Limited Liability Companies and related investment regulations, particularly when foreign investment is involved. Given Indonesia's complex regulatory environment, the agreement typically includes detailed provisions for obtaining necessary government approvals, managing tax implications, and ensuring proper corporate governance transitions. The document needs to address specific Indonesian requirements such as language requirements (bilingual formats), notarization, and registration with relevant authorities.
