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Commercial Rental Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for leasing commercial property. This agreement details the rights and obligations of both landlord and tenant, including rent payment terms, property usage conditions, maintenance responsibilities, and compliance with local regulations. It incorporates specific provisions required under Indonesian property law and commercial regulations, while addressing key aspects such as security deposits, insurance requirements, and dispute resolution mechanisms in accordance with Indonesian jurisdiction.

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What is a Commercial Rental Agreement?

The Commercial Rental Agreement serves as a vital legal instrument in Indonesian business transactions, providing a structured framework for commercial property leasing arrangements. This document is essential when businesses seek to rent commercial spaces such as offices, retail outlets, warehouses, or industrial facilities in Indonesia. It must comply with Indonesian Civil Code requirements and local property regulations, incorporating provisions for rent, security deposits, maintenance obligations, and permitted commercial activities. The agreement protects both landlord and tenant interests while ensuring adherence to Indonesian building safety standards and commercial registration requirements. It's particularly important in urban centers like Jakarta, Surabaya, and other major Indonesian cities where commercial property transactions are frequent and require careful legal documentation.

What sections should be included in a Commercial Rental Agreement?

1. Parties: Identifies and provides full details of the landlord and tenant, including registration numbers for companies

2. Background: Describes the context of the agreement, including brief description of the property and the parties' intention to enter into a commercial lease

3. Definitions: Defines key terms used throughout the agreement

4. Demised Premises: Detailed description of the rented property, including its boundaries and any shared areas

5. Term and Renewal: Specifies the duration of the lease and any renewal options

6. Rent and Payment Terms: Details the rent amount, payment schedule, and payment methods

7. Security Deposit: Specifies the security deposit amount, terms of holding, and conditions for return

8. Permitted Use: Defines the authorized commercial activities that can be conducted on the premises

9. Maintenance and Repairs: Outlines responsibilities for maintenance, repairs, and renovations

10. Utilities and Services: Specifies responsibility for utility payments and service arrangements

11. Insurance: Details required insurance coverage for both parties

12. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

13. Termination: Grounds and procedures for terminating the lease

14. Governing Law: Specifies Indonesian law as governing law and jurisdiction

15. Dispute Resolution: Procedures for resolving disputes between parties

What sections are optional to include in a Commercial Rental Agreement?

1. Fit-out Works: Include when tenant is permitted to perform initial modifications to the premises

2. Service Charge: Include for properties in commercial complexes with shared facilities

3. Green Building Requirements: Include when the building has specific environmental certifications or requirements

4. Operating Hours: Include when there are restrictions on business hours or access times

5. Signage Rights: Include when addressing specific requirements for commercial signage

6. Parking: Include when parking spaces are part of the lease

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

8. Break Clause: Include when early termination options are available to either party

What schedules should be included in a Commercial Rental Agreement?

1. Floor Plan: Detailed plan showing the leased premises and common areas

2. Inventory: List of fixtures, fittings, and equipment included in the lease

3. Service Charges Breakdown: Detailed breakdown of service charges and calculation method

4. Building Rules and Regulations: Specific rules governing the use of the building

5. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications

6. Handover Form: Condition report of the premises at the start of the lease

7. Maintenance Schedule: Schedule of regular maintenance responsibilities

8. Required Permits: List of necessary permits and licenses for commercial operation

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

Rental Agreement

Cost

Free to use

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