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Friends And Family Investment Agreement Template for Indonesia

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Key Requirements PROMPT example:

Friends And Family Investment Agreement

"I need a Friends and Family Investment Agreement for my uncle's investment of 500 million IDR into my technology startup in Jakarta, with quarterly profit sharing and a planned exit by January 2025."

Document background
The Friends And Family Investment Agreement is essential for formalizing private investment arrangements in Indonesia's relationship-driven business environment. This document is typically used when family members or close friends wish to invest in a business venture while maintaining clear legal boundaries and protecting all parties' interests. It addresses unique aspects of Indonesian business culture, where family and personal relationships play a significant role in business dealings. The agreement covers crucial elements such as investment terms, profit sharing, management rights, and exit strategies, while complying with Indonesian investment laws, civil code requirements, and tax regulations. It's particularly relevant for small to medium-sized enterprises, family businesses, and startups seeking capital from their immediate network rather than traditional financial institutions.
Suggested Sections

1. Parties: Identification of all parties involved, including full legal names, addresses, and their roles (investor/investee)

2. Background: Context of the investment relationship, including the nature of the personal relationship between parties

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Investment Amount and Terms: Specific details of the investment amount, payment schedule, and form of investment (equity, loan, or hybrid)

5. Purpose of Investment: Detailed description of how the investment will be used

6. Return on Investment: Terms of return payment, including calculation method, payment schedule, and profit-sharing arrangements

7. Rights and Obligations: Specific responsibilities and rights of both investor and investee

8. Reporting and Transparency: Requirements for financial reporting, access to information, and communication between parties

9. Duration and Exit: Term of the investment and procedures for ending the investment relationship

10. Default and Remedies: What constitutes default and steps for resolution

11. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and method of dispute resolution

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Board Representation: Used when the investment includes rights to appoint board members or observers

2. Family Council Provisions: Include when multiple family members are involved and a formal decision-making structure is needed

3. Business Operation Restrictions: Used when investor wants specific controls over business decisions

4. Tag-Along Rights: Include when there's possibility of future sale to third parties

5. Subordination Provisions: Include when there are other creditors or investors involved

6. Family Member Employment: Used when investment includes terms about employment of family members

7. Intellectual Property Rights: Include when investment involves IP or technology

8. Confidentiality: Optional for family agreements but recommended for non-family friends

9. Force Majeure: Include when additional protection against unforeseen circumstances is desired

Suggested Schedules

1. Investment Schedule: Detailed breakdown of investment amounts and payment timeline

2. Business Plan: Overview of business strategy and use of funds

3. Financial Projections: Expected returns and financial forecasts

4. Reporting Template: Standard format for regular financial and operational reports

5. Existing Liabilities: List of current business debts and obligations

6. Asset Register: List of major assets owned by the business

7. Shareholder Details: If equity investment, breakdown of shareholding structure

8. Family Member Roles: Details of family members' involvement and responsibilities

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 | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses








































Relevant Industries

Small Retail

Family Restaurants

Technology Startups

Traditional Trade

Agriculture

Property Development

Creative Industries

E-commerce

Manufacturing

Professional Services

Food and Beverage

Education Services

Local Tourism

Craft Industries

Small-scale Mining

Relevant Teams

Legal

Finance

Compliance

Risk Management

Corporate Secretariat

Investment

Business Development

Family Office

Treasury

Corporate Governance

Relevant Roles

Business Owner

Family Business Manager

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Investment Manager

Business Development Manager

Finance Director

Company Secretary

Risk Manager

Compliance Officer

Family Office Manager

Small Business Advisor

Wealth Manager

Corporate Lawyer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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