The Letter Of Intent For Contract Renewal is a crucial business document used in Indonesian commercial practice when parties wish to express their formal intention to renew an existing contractual arrangement. It serves as a preliminary step in the contract renewal process, typically initiated several months before the existing contract's expiration. This document is particularly important in Indonesia's business environment, where formal written communication is highly valued and helps establish clear intentions between parties. The letter should reference the existing contract, outline proposed renewal terms, and establish a timeline for finalizing the renewal, all while complying with Indonesian Civil Code requirements. It's commonly used in ongoing business relationships where both parties wish to continue their arrangement but need time to negotiate specific terms or obtain necessary approvals.
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1. Letter Header: Complete business details of both parties, including registered addresses and contact information
2. Date: Current date of the letter
3. Reference Line: Reference to existing contract number/identifier and its original execution date
4. Salutation: Formal greeting to the appropriate authority of the receiving organization
5. Opening Statement: Clear statement of intent to renew the existing contract, referencing the current contract details
6. Contract Performance Statement: Brief acknowledgment of successful existing relationship and contract performance
7. Renewal Terms Overview: High-level outline of proposed key terms for renewal (duration, any major changes)
8. Proposed Timeline: Timeline for negotiation and execution of the renewal contract
9. Contact Details: Specific contact person and details for renewal discussions
10. Closing Statement: Professional closing with clear next steps
11. Signature Block: Space for authorized signatory, including name, title, and company details
1. Non-Binding Statement: Optional clarification that the LOI is non-binding, used when parties want to explicitly state that this document is for discussion purposes only
2. Confidentiality Statement: Statement about confidentiality of negotiations, used when sensitive information will be exchanged during renewal discussions
3. Exclusivity Period: Specified period during which parties agree to negotiate exclusively with each other, used in competitive industries or sensitive renewals
4. Preliminary Commercial Terms: Basic outline of proposed commercial changes, used when significant modifications to existing terms are anticipated
5. Conditions Precedent: Any specific conditions that must be met before formal renewal, used when renewal is contingent on certain achievements or requirements
1. Current Contract Summary: Brief summary of key terms in existing contract, attached for easy reference
2. Proposed Changes Overview: High-level list of any significant proposed changes from current contract terms
3. Timeline Schedule: Detailed timeline for the renewal process, including key milestones and deadlines
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Manufacturing
Technology
Telecommunications
Construction
Energy
Mining
Real Estate
Retail
Financial Services
Healthcare
Education
Transportation
Logistics
Agriculture
Professional Services
Hospitality
Relevant Teams
Legal
Procurement
Business Development
Operations
Commercial
Compliance
Risk Management
Contract Administration
Corporate Affairs
Finance
Project Management
Relevant Roles
Chief Executive Officer
Managing Director
Chief Operating Officer
Contract Manager
Procurement Manager
Legal Counsel
Business Development Manager
Commercial Director
Operations Manager
Project Manager
Relationship Manager
Account Executive
Compliance Officer
Risk Manager
General Manager
Country Manager
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