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Interest Transfer Agreement Template for Indonesia

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Key Requirements PROMPT example:

Interest Transfer Agreement

"I need an Interest Transfer Agreement for the transfer of 60% ownership in an Indonesian manufacturing company to a Singapore-based investor, with completion planned for March 2025 and including specific provisions for foreign investment approval requirements."

Document background
The Interest Transfer Agreement is a crucial document used in Indonesian business transactions when one party wishes to transfer their business interests to another. This document is essential for various corporate restructuring, investment, and divestment activities in Indonesia. It must comply with Law No. 40 of 2007 on Limited Liability Companies, Law No. 25 of 2007 on Investment, and other relevant Indonesian regulations. The agreement typically includes detailed provisions on the transfer process, regulatory compliance requirements, tax implications, and necessary corporate and governmental approvals. It's particularly important in contexts involving foreign investment, regulated industries, or significant corporate transactions where careful documentation of the transfer terms and conditions is required.
Suggested Sections

1. Parties: Identification of the transferor and transferee, including complete legal names, registration numbers, and addresses

2. Background: Context of the transfer, description of the business interest being transferred, and current ownership structure

3. Definitions: Definitions of key terms used throughout the agreement, including specific Indonesian legal terminology

4. Subject Matter of Transfer: Detailed description of the interest being transferred, including percentage, type, and any associated rights

5. Purchase Price and Payment: Transfer consideration, payment terms, mechanics, and any adjustments

6. Conditions Precedent: Required approvals, consents, and conditions that must be satisfied before completion

7. Completion: Timing, location, and mechanics of the transfer completion

8. Representations and Warranties: Standard and specific warranties from both parties, including those required under Indonesian law

9. Tax Matters: Allocation of tax liabilities and responsibilities for filing requirements

10. Confidentiality: Obligations regarding confidential information and announcements

11. Governing Law and Dispute Resolution: Indonesian law as governing law and dispute resolution mechanisms

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Regulatory Compliance: Required for transfers in regulated sectors or involving foreign investment restrictions

2. Corporate Governance: Include when transfer affects management rights or corporate governance arrangements

3. Non-Competition: Required when transferor needs to be restricted from competing post-transfer

4. Transition Services: Include when ongoing support from transferor is needed post-completion

5. Employee Matters: Required when transfer affects employment relationships or requires employee notifications

6. Foreign Investment Provisions: Include when transfer involves foreign investors and related requirements

7. Bank/Financing Arrangements: Required when transfer involves existing financing arrangements or security

8. Intellectual Property: Include when transfer includes or affects IP rights

Suggested Schedules

1. Description of Interest: Detailed description of the business interest being transferred

2. Completion Requirements: Checklist of documents and actions required for completion

3. Form of Transfer Instruments: Template forms for share transfer documentation required under Indonesian law

4. Corporate Information: Company details, shareholding structure, and corporate documents

5. Required Consents: List of third-party and regulatory consents required

6. Encumbrances: List of existing encumbrances affecting the interest

7. Tax Calculations: Details of applicable taxes and calculations

8. Disclosure Schedule: Disclosures against warranties and representations

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

Manufacturing

Technology

Financial Services

Mining

Oil and Gas

Real Estate

Infrastructure

Telecommunications

Retail

Healthcare

Agriculture

Transportation

Energy

Construction

Hospitality

Relevant Teams

Legal

Finance

Corporate Secretarial

Compliance

Tax

Risk Management

Corporate Development

Mergers & Acquisitions

Investment Relations

Business Development

Treasury

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Legal Counsel

Corporate Secretary

Investment Director

Merger & Acquisition Manager

Business Development Manager

Finance Director

Tax Manager

Compliance Officer

Risk Manager

Corporate Finance Manager

Investment Relations Manager

Board Member

Managing Director

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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