Document background
The JV Term Sheet is a crucial preliminary document used when parties intend to form a joint venture in Indonesia. It serves as a roadmap for the transaction and subsequent detailed documentation. This document type is particularly important in the Indonesian context due to the complex regulatory environment, foreign investment restrictions, and local business requirements. The Term Sheet captures essential commercial terms, governance structures, and regulatory considerations while remaining non-binding except for specific provisions like confidentiality and exclusivity. It's typically used during the initial stages of JV negotiations to ensure alignment between parties before proceeding with detailed due diligence and definitive agreements. The document must comply with Indonesian law requirements, including Law No. 40 of 2007 on Limited Liability Companies and Law No. 25 of 2007 on Investment.
