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Joint Venture Agreement For (Construction) Template for Indonesia

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Key Requirements PROMPT example:

Joint Venture Agreement For (Construction)

"I need a Joint Venture Agreement For (Construction) between our Indonesian state-owned construction company and a Singapore-based infrastructure firm, focusing on port development projects with expected capital of USD 50 million, with operations to commence in March 2025."

Document background
The Joint Venture Agreement For (Construction) is a crucial document used when two or more parties wish to combine their resources, expertise, and capabilities to undertake construction projects in Indonesia. This agreement is particularly relevant in the context of Indonesia's growing infrastructure and construction sector, where local expertise often combines with foreign technical capabilities and capital. The document must comply with Indonesian regulations, including the Construction Services Law (Law No. 2 of 2017), Investment Law (Law No. 25 of 2007), and various implementing regulations. It addresses key aspects such as capital structure, management control, technical responsibilities, local content requirements, and specific construction industry compliance matters. The agreement is especially important given Indonesia's complex regulatory environment for construction activities and foreign investment restrictions.
Suggested Sections

1. Parties: Identification of the joint venture partners and their legal details

2. Background: Context of the joint venture formation and parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Joint Venture Formation: Establishment of the JV company, including corporate form, name, and registered office

5. Purpose and Scope: Specific construction activities and projects to be undertaken by the JV

6. Capital Structure and Contributions: Details of initial capital, equity ratios, and form of contributions (cash, assets, expertise)

7. Construction Licenses and Permits: Requirements and responsibilities for obtaining necessary construction permits

8. Management and Governance: Board structure, voting rights, reserved matters, and management appointments

9. Operations and Project Management: Day-to-day management, project execution procedures, and operational protocols

10. Financial Matters: Financial management, accounting principles, audits, and dividend policy

11. Staff and Employment: Employment policies, key personnel, and compliance with Indonesian labor laws

12. Non-Competition and Confidentiality: Restrictions on competing activities and protection of confidential information

13. Term and Termination: Duration of the JV and circumstances for termination

14. Default and Consequences: Events of default and resulting remedies

15. Dispute Resolution: Dispute resolution mechanisms, governing law, and jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, amendments, and language requirements

Optional Sections

1. Technical Support and Knowledge Transfer: Used when one partner is providing specific technical expertise or technology transfer

2. Government Relations: Include when the JV involves significant interaction with government bodies or state-owned enterprises

3. Local Content Requirements: Required when the project must meet specific Indonesian local content requirements

4. Equipment and Asset Management: Include when the JV involves significant shared equipment or assets

5. Health, Safety and Environment: Required for high-risk construction projects or when specifically required by regulations

6. Islamic Finance Compliance: Include when the JV involves Islamic finance structures or requirements

7. Foreign Worker Requirements: Include when the JV plans to employ expatriate workers

8. Procurement Procedures: Required when the JV will participate in government tenders or has specific procurement requirements

Suggested Schedules

1. Schedule 1 - Business Plan: Detailed business plan including project pipeline and financial projections

2. Schedule 2 - Initial Contributions: Detailed list of each party's initial contributions (cash, assets, etc.)

3. Schedule 3 - Reserved Matters: List of decisions requiring special approval or unanimous consent

4. Schedule 4 - Key Personnel: Details of key management positions and initial appointments

5. Schedule 5 - Technical Specifications: Technical standards and specifications for construction projects

6. Schedule 6 - License and Permit Requirements: List of required licenses, permits and responsible parties

7. Schedule 7 - Form of Shareholder Loan Agreement: Template for any shareholder loans to the JV

8. Schedule 8 - Insurance Requirements: Required insurance coverage for the JV's operations

9. Appendix A - Company Constitution: Constitutional documents of the JV company

10. Appendix B - Construction Methodology: Standard construction methods and procedures to be followed

11. Appendix C - Quality Assurance Plan: Quality control and assurance procedures

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

Construction

Infrastructure Development

Real Estate Development

Civil Engineering

Industrial Construction

Commercial Construction

Residential Construction

Mining Infrastructure

Transportation Infrastructure

Energy Infrastructure

Public Works

Maritime Infrastructure

Relevant Teams

Legal

Construction

Operations

Finance

Commercial

Business Development

Risk and Compliance

Technical Services

Project Management

Corporate Affairs

Investment

Procurement

Strategy

Partnership Management

Relevant Roles

Chief Executive Officer

Managing Director

Construction Director

Legal Counsel

Project Manager

Commercial Director

Technical Director

Chief Financial Officer

Business Development Manager

Operations Manager

Compliance Officer

Contract Manager

Risk Manager

Chief Operating Officer

Investment Manager

Company Secretary

Head of Construction

Joint Venture Manager

Partnership Director

Technical Services Manager

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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