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Car Lease Agreement Template for Indonesia

A Car Lease Agreement governed by Indonesian law is a legally binding contract that establishes the terms and conditions under which a vehicle owner (lessor) grants temporary possession and use of a specific vehicle to another party (lessee) in exchange for regular rental payments. This document incorporates requirements from Indonesian civil law, transportation regulations, and consumer protection legislation, specifically addressing vehicle specifications, maintenance obligations, insurance requirements, and payment terms. The agreement ensures compliance with Law No. 22 of 2009 on Traffic and Road Transportation and related Indonesian regulations while protecting both parties' interests through clear allocation of rights, responsibilities, and risks.

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What is a Car Lease Agreement?

The Car Lease Agreement serves as the primary legal instrument for documenting vehicle leasing arrangements in Indonesia. This document is essential when a party wishes to obtain the use of a vehicle without purchasing it outright, whether for personal or business purposes. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Law No. 22 of 2009 on Traffic and Road Transportation, and consumer protection regulations. It covers crucial aspects such as vehicle specifications, lease duration, payment terms, maintenance responsibilities, insurance requirements, and liability allocation. The document is particularly important in Indonesia's growing automotive and transportation sectors, where vehicle leasing has become increasingly popular as an alternative to outright purchase. It provides legal protection for both lessors and lessees while ensuring adherence to local regulatory requirements.

What sections should be included in a Car Lease Agreement?

1. Parties: Identification of the lessor (vehicle owner/leasing company) and lessee (customer), including complete legal names, addresses, and registration numbers if applicable

2. Background: Context of the agreement, including the intent to lease a vehicle and basic commercial understanding

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Lease Term', 'Monthly Rental', 'Security Deposit', etc.

4. Vehicle Description: Detailed specification of the leased vehicle including make, model, year, color, VIN, and registration number

5. Lease Term and Rental Payments: Duration of lease, payment amounts, payment schedule, and payment methods

6. Security Deposit: Amount, terms, and conditions for return of the security deposit

7. Vehicle Delivery and Return: Conditions for vehicle handover and return, including inspection procedures

8. Use of Vehicle: Permitted uses, territorial limits, and restrictions on vehicle usage

9. Maintenance and Repairs: Responsibilities for vehicle maintenance, repair procedures, and cost allocation

10. Insurance Requirements: Mandatory insurance coverage and responsibilities for insurance costs

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Default and Termination: Events of default, remedies, and termination procedures

13. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

14. Notices: Method and addresses for formal communications between parties

15. Signatures: Execution block for parties to sign the agreement

What sections are optional to include in a Car Lease Agreement?

1. Sublease and Assignment: Include when sublease or assignment rights need to be explicitly addressed

2. Mileage Limitations: Include when there are specific mileage restrictions and excess mileage charges

3. Purchase Option: Include when lessee has the option to purchase the vehicle at the end of lease term

4. Additional Services: Include when additional services like maintenance package or replacement vehicle are offered

5. Early Termination: Include when early termination options and associated fees need to be specified

6. GPS Tracking: Include when vehicle is equipped with GPS tracking system

7. Cross-Border Usage: Include when vehicle may be used across international borders

What schedules should be included in a Car Lease Agreement?

1. Vehicle Specification Sheet: Detailed technical specifications and features of the vehicle

2. Condition Report: Documentation of vehicle condition at time of delivery

3. Payment Schedule: Detailed breakdown of all payments including rental, deposits, and other charges

4. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

5. Maintenance Schedule: Required maintenance intervals and procedures

6. Return Conditions: Specific conditions the vehicle must meet upon return

7. Authorized Drivers Form: List of permitted drivers and their license details

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Lease Agreement

Cost

Free to use

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