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Jv Operating Agreement

Jv Operating Agreement Template for Indonesia

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Key Requirements PROMPT example:

Jv Operating Agreement

"I need a JV Operating Agreement for a technology joint venture between our Indonesian software company and a Singapore-based AI firm, with specific provisions for intellectual property sharing and technical service arrangements, to be effective from March 2025."

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Document background
The JV Operating Agreement is a crucial document used when two or more parties wish to establish and operate a joint venture company in Indonesia. It's particularly relevant in contexts where foreign investors seek to enter the Indonesian market in compliance with local ownership requirements and investment regulations. The agreement must navigate complex Indonesian legal requirements, including the Investment Priority List (formerly Negative Investment List), mandatory use of Bahasa Indonesia in contracts, and specific corporate governance rules under Indonesian Company Law. This document sets out detailed arrangements for company operation, from initial establishment through to daily management and potential exit scenarios, while ensuring compliance with local regulatory requirements and market practices.
Suggested Sections

1. Parties: Identification of the JV partners, including their full legal names, registration details, and addresses

2. Background: Context of the JV formation, business objectives, and preliminary agreements or MOUs

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. Formation of the Joint Venture: Details of JV company establishment, business scope, and registration requirements

5. Capital Contributions: Initial and subsequent capital contributions, valuation methods, and timing

6. Shares and Shareholding: Share structure, classes of shares, and ownership percentages

7. Management and Governance: Board composition, voting rights, reserved matters, and management structure

8. Shareholder Meetings: Procedures for general meetings, voting requirements, and quorum

9. Business Operations: Day-to-day management, business plan requirements, and operational procedures

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

11. Transfer of Shares: Share transfer restrictions, right of first refusal, and tag-along/drag-along rights

12. Deadlock Resolution: Procedures for resolving management deadlocks and serious disagreements

13. Confidentiality: Protection of confidential information and trade secrets

14. Term and Termination: Duration of the agreement, termination events, and consequences

15. General Provisions: Standard clauses including notices, amendments, governing law, and language requirements

Optional Sections

1. Non-Competition: Restrictions on competing activities, used when partners operate in similar industries

2. Intellectual Property Rights: IP ownership and licensing provisions, needed when JV involves significant IP

3. Employee Matters: Staff transfers, employment policies, needed when JV involves significant personnel arrangements

4. Technical Services: Technical support arrangements, used when one partner provides technical expertise

5. Marketing and Branding: Brand usage and marketing arrangements, important for consumer-facing JVs

6. Foreign Exchange: Currency conversion and exchange risk provisions, needed for international JVs

7. Force Majeure: Provisions for unforeseen events, particularly important in high-risk industries

Suggested Schedules

1. Initial Business Plan: Detailed business plan including market analysis, financial projections, and operational strategy

2. Capital Contribution Schedule: Detailed breakdown of each partner's capital contributions, including timing and valuation

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

4. Key Performance Indicators: Agreed performance metrics and targets for the JV

5. Management Structure: Organizational chart and key position descriptions

6. Service Level Agreements: Details of services provided by partners to the JV

7. Technical Specifications: Technical requirements and standards for JV operations

8. Company Articles: Articles of Association of the JV company complying with Indonesian law

9. Initial Budget: Detailed operating budget for the first year of operations

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

alex.den.21@genieai.co
Relevant legal definitions













































Clauses





































Relevant Industries

Manufacturing

Technology

Mining and Resources

Infrastructure

Telecommunications

Agriculture

Retail and Consumer Goods

Financial Services

Healthcare

Energy

Transportation and Logistics

Real Estate and Construction

Digital Economy

Education

Relevant Teams

Legal

Corporate Affairs

Business Development

Finance

Operations

Risk and Compliance

Strategy

Investment

Corporate Secretary Office

Board of Directors

Executive Management

Project Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

General Counsel

Corporate Secretary

Head of Business Development

Investment Director

Managing Director

Operations Director

Commercial Director

Joint Venture Manager

Legal Counsel

Corporate Lawyer

Investment Manager

Business Development Manager

Risk Manager

Compliance Officer

Board Director

Project 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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