The Land Development Contract is a crucial legal instrument used in Indonesian property development projects to establish a binding agreement between landowners, developers, and other relevant parties. This document is essential when undertaking any significant land development project in Indonesia, whether for commercial, residential, or industrial purposes. It must comply with various Indonesian regulations including the Basic Agrarian Law No. 5 of 1960, Law No. 28 of 2002 on Buildings, and Environmental Protection and Management Law No. 32 of 2009. The contract typically includes detailed provisions for development rights, construction requirements, environmental compliance, permits and licenses, financial terms, and risk allocation. It's particularly important due to Indonesia's unique land title system and strict environmental protection requirements, making it essential for both domestic and foreign investors involved in property development.
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1. Parties: Identification of the landowner and developer, including registration details and authorized representatives
2. Background: Context of the development project, including property details and development objectives
3. Definitions: Defined terms used throughout the agreement, including Indonesian legal and technical terms
4. Project Scope: Detailed description of the development work, specifications, and deliverables
5. Land Rights and Access: Details of land ownership, development rights, and access arrangements during construction
6. Regulatory Compliance: Requirements for permits, licenses, and compliance with Indonesian laws and regulations
7. Development Timeline: Project schedule, milestones, and completion dates
8. Financial Terms: Payment terms, development costs, and financial obligations
9. Construction Requirements: Technical specifications, quality standards, and construction methodology
10. Environmental Compliance: Environmental protection measures and AMDAL requirements
11. Risk Allocation: Distribution of risks between parties and insurance requirements
12. Default and Termination: Events of default, remedies, and termination procedures
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard contract clauses including notices, amendments, and severability
1. Community Relations: Procedures for managing community engagement and social impact, required when development affects local communities
2. Foreign Investment Provisions: Additional requirements for foreign developers, needed when the developer is a foreign entity
3. Special Economic Zone Requirements: Additional provisions required when development is within a Special Economic Zone
4. Cultural Heritage Protection: Special provisions required when development is near cultural or heritage sites
5. Infrastructure Development: Additional provisions for public infrastructure requirements, needed when project includes public infrastructure
6. Profit Sharing: Terms for sharing development profits, included when parties agree to profit-sharing arrangement
1. Site Plan: Detailed plans and drawings of the development site and proposed construction
2. Development Specifications: Technical specifications and requirements for the development work
3. Permits and Licenses: List of required permits and copies of obtained approvals
4. Payment Schedule: Detailed breakdown of payment terms and milestone payments
5. Project Timeline: Detailed project schedule with milestones and deadlines
6. Environmental Management Plan: Detailed plans for environmental protection and management
7. Land Title Documents: Copies of land certificates and ownership documents
8. Construction Quality Standards: Detailed quality requirements and acceptance criteria
9. Insurance Requirements: Specific insurance requirements and coverage details
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