The Commercial Real Estate Lease Agreement is a vital document used in Indonesia's commercial property sector to establish legally binding lease arrangements between property owners and business tenants. This document is essential when leasing office spaces, retail units, industrial facilities, or other commercial properties in Indonesia. It must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and various property regulations, while addressing specific requirements for both domestic and foreign businesses. The agreement covers comprehensive terms including rental payments, maintenance obligations, permitted use, and other crucial aspects of commercial property leasing, incorporating necessary provisions for regional property regulations and building management laws. It's particularly important in Indonesia's growing commercial real estate market, where proper documentation and compliance with local regulations are crucial for business operations.
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1. Parties: Identification of the lessor and lessee, including complete legal names, addresses, and registration numbers for companies
2. Background: Context of the lease arrangement and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Demised Premises: Detailed description of the leased property and any included facilities or common areas
5. Lease Term: Duration of the lease, commencement date, and any renewal options
6. Rent and Security Deposit: Rental amount, payment terms, security deposit requirements, and review mechanisms
7. Service Charges and Utilities: Additional charges, building maintenance fees, and utility payment responsibilities
8. Use of Premises: Permitted use of the property and any restrictions
9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and renovations
10. Insurance: Required insurance coverage for both parties
11. Assignment and Subletting: Conditions for transferring or subletting the premises
12. Lessor's Covenants: Obligations and warranties of the property owner
13. Lessee's Covenants: Obligations and warranties of the tenant
14. Termination: Grounds for termination and associated procedures
15. Force Majeure: Provisions for unforeseen circumstances affecting the lease
16. Governing Law: Confirmation of Indonesian law application and jurisdiction
17. Dispute Resolution: Procedures for resolving disputes, including mediation and litigation
18. Notices: Communication procedures between parties
19. Execution: Signature blocks and execution requirements
1. Break Clause: Early termination options - include when flexibility is needed for either party to end the lease early
2. Fit-out Works: Regulations for initial tenant improvements - include when premises require modification
3. Green Building Requirements: Environmental compliance and sustainability measures - include for buildings with green certification
4. Trading Requirements: Specific operating hours and conditions - include for retail premises
5. Signage Rights: Regulations for external and internal signage - include for retail or prominent commercial locations
6. Parking Rights: Allocation and management of parking spaces - include when parking is part of the lease
7. Foreign Investment Provisions: Specific requirements for foreign tenants - include when lessee is a foreign entity
8. Change of Control: Provisions regarding change in ownership - include for corporate tenants
9. Competition Restrictions: Non-compete clauses - include for retail premises in shopping centers
1. Floor Plans: Detailed plans showing the leased premises and common areas
2. Condition Report: Documentation of premises condition at lease commencement
3. Service Charge Schedule: Breakdown of service charges and calculation method
4. Building Rules and Regulations: Detailed building management rules and operating procedures
5. Fit-out Guidelines: Technical specifications for permitted alterations and improvements
6. Handover Protocol: Procedures and requirements for property handover
7. Rental Payment Schedule: Detailed breakdown of rent payments and escalation
8. Insurance Requirements: Specific insurance types and coverage amounts required
9. Environmental Compliance Requirements: Environmental standards and certification requirements
10. Permitted Use Guidelines: Detailed specifications of allowed commercial activities
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