Document background
The Joint Venture MOU is a crucial preliminary document used in Indonesia when two or more parties intend to establish a joint venture business relationship. It serves as a roadmap for negotiations and subsequent definitive agreements, capturing the parties' initial understanding while maintaining flexibility. This document type is particularly important in the Indonesian context due to specific regulatory requirements for foreign investment, company establishment, and sector-specific regulations. The Joint Venture MOU typically includes proposed shareholding structures, management arrangements, and key commercial terms while ensuring compliance with Indonesian investment laws and regulations. It is commonly used during the initial stages of business collaboration, particularly when parties need to conduct due diligence, obtain regulatory approvals, or secure internal corporate authorizations before proceeding with a binding joint venture agreement.
