Document background
The MoU for Purchase of Goods is commonly used in Indonesian business practice as a preliminary step before entering into a definitive purchase agreement. It is particularly relevant when parties need to document their initial understanding while conducting due diligence, obtaining corporate or regulatory approvals, or negotiating detailed terms. The document typically includes proposed commercial terms, timeline for definitive agreement, confidentiality obligations, and other key preliminary arrangements. Under Indonesian law, while most provisions are non-binding, certain clauses like confidentiality can be made explicitly binding. This document type is especially useful in complex transactions involving foreign parties, significant purchase values, or when regulatory compliance needs to be assessed before final commitment.
