The Lease & License Agreement is a crucial legal document used in Indonesian property transactions to formalize the relationship between property owners and occupants. It is particularly relevant when both physical space occupation and specific usage rights need to be granted. This agreement combines elements of traditional lease provisions with licensing terms, making it suitable for modern commercial arrangements such as serviced offices, co-working spaces, or retail units with shared facilities. The document must comply with Indonesian property law, including the Basic Agrarian Law and local property regulations, while addressing practical aspects such as rental payments, maintenance responsibilities, and operational requirements. It's commonly used in commercial, retail, and industrial settings where tenants require both physical space and specific usage rights or services.
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1. Parties: Identification of the lessor/licensor and lessee/licensee with complete legal names and addresses
2. Background: Context of the agreement including property details and purpose of the lease/license
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Lease and License: Specific details of what rights are being granted, including precise description of the property/space
5. Term and Renewal: Duration of the lease/license and any renewal options
6. Rent and License Fees: Payment terms, amounts, due dates, and payment methods
7. Security Deposit: Amount, terms, and conditions for return of the security deposit
8. Permitted Use: Specific allowed uses of the property/licensed area
9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements
10. Utilities and Services: Responsibility for utilities, services, and related charges
11. Insurance and Liability: Required insurance coverage and allocation of risks
12. Assignment and Subletting: Rights and restrictions regarding transfer of rights to third parties
13. Default and Remedies: Events of default and corresponding remedies available to either party
14. Termination: Grounds and procedures for termination of the agreement
15. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes
16. Notices: How formal communications between parties should be made
17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Foreign Investment Provisions: Required when the lessee/licensee is a foreign entity, including compliance with Indonesian investment laws
2. Fit-Out Works: Used when the tenant will be conducting significant modifications or improvements
3. Service Level Agreement: Needed when specific services are included with the lease/license
4. Environmental Compliance: Required for industrial or commercial properties with potential environmental impact
5. Operating Hours and Access: Important for commercial properties in shared buildings or complexes
6. Common Areas: Necessary for properties in multi-tenant buildings or complexes
7. Property Management Rules: Required for properties within managed complexes or buildings
8. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant post-COVID
1. Property Description: Detailed description of the property including floor plans, boundaries, and measurements
2. Rent and Payment Schedule: Detailed breakdown of rent, escalations, and payment dates
3. Condition Report: Documentation of property condition at commencement of lease
4. Building Rules and Regulations: Specific rules governing the use of the property
5. Service Charges: Breakdown of service charges and calculation methodology
6. Permitted Alterations: Specifications of allowed modifications to the property
7. Required Licenses: List of licenses and permits required for property use
8. Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Handover Protocol: Procedures for property handover at start and end of term
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