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Investment Cooperation Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for investment cooperation between two or more parties. The document outlines investment structure, rights and obligations, governance mechanisms, and profit-sharing arrangements while ensuring compliance with Indonesian investment regulations, including Law No. 25 of 2007 on Investment and related regulatory frameworks. It incorporates necessary provisions for foreign investment protection, local partnership requirements, and dispute resolution mechanisms specific to the Indonesian jurisdiction.

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What is a Investment Cooperation Agreement?

The Investment Cooperation Agreement serves as a crucial legal framework for establishing investment partnerships in Indonesia, whether between domestic entities or involving foreign investors. This document is essential when parties seek to formalize their investment relationship, detailing capital contributions, profit-sharing mechanisms, management rights, and exit strategies. It must comply with Indonesian investment laws, including Law No. 25 of 2007 on Investment, and address specific requirements for foreign investment, such as the Negative Investment List restrictions and mandatory use of Indonesian language in agreements. The document is particularly relevant for joint ventures, strategic partnerships, and direct investment arrangements, incorporating necessary safeguards for investor protection while ensuring alignment with Indonesia's investment policies and regulatory requirements.

What sections should be included in a Investment Cooperation Agreement?

1. Parties: Identification of all parties to the agreement, including their legal status and registration details

2. Background: Context of the investment cooperation, including the business opportunity and parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Investment Structure: Details of the investment amount, payment terms, and ownership structure

5. Rights and Obligations of Parties: Detailed responsibilities and rights of each party in the investment cooperation

6. Governance and Management: Decision-making processes, management structure, and voting rights

7. Financial Provisions: Profit sharing, distribution policy, and financial management principles

8. Representations and Warranties: Statements of fact and assurances from each party

9. Regulatory Compliance: Compliance with Indonesian investment laws and regulations

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Dispute Resolution: Mechanisms for resolving disputes, including jurisdiction and governing law

13. General Provisions: Standard clauses including notices, amendments, and entire agreement

What sections are optional to include in a Investment Cooperation Agreement?

1. Non-Competition: Restrictions on competitive activities, used when parties may have competing interests

2. Technology Transfer: Terms for technology or knowledge transfer, relevant for technical cooperation investments

3. Environmental and Social Responsibility: Environmental and social obligations, important for projects with environmental impact

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term investments

5. Anti-Corruption and Compliance: Specific anti-corruption provisions, essential for international investments

6. Insurance: Insurance requirements and obligations, important for high-risk investments

7. Employee Matters: Employment-related provisions, relevant when investment affects workforce

8. Intellectual Property Rights: IP ownership and licensing terms, essential for technology-based investments

What schedules should be included in a Investment Cooperation Agreement?

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

2. Business Plan: Agreed business plan and financial projections

3. Shareholders Agreement: Detailed terms of shareholding if investment involves equity

4. Assets Schedule: List of assets included in the investment cooperation

5. Key Performance Indicators: Agreed performance metrics and targets

6. Required Permits and Licenses: List of regulatory approvals needed for the investment

7. Management Structure: Detailed organizational structure and management positions

8. Technical Specifications: Technical details of any equipment, technology, or processes involved

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

Cost

Free to use

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