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The Option Agreement Land is a crucial document in Indonesian real estate transactions, providing a structured framework for securing potential land acquisitions while conducting necessary due diligence and obtaining required approvals. It is particularly valuable in complex development projects where parties need time to arrange financing, obtain permits, or complete investigations before committing to a full purchase. The agreement must comply with Indonesian property laws, including the Basic Agrarian Law (UU No. 5/1960) and related regulations, especially concerning foreign ownership restrictions and land use rights. This document type is commonly used in commercial, industrial, and development projects where securing land rights early is essential for project planning and risk management.

1. Parties: Identification of the option grantor (landowner) and option holder, including complete legal names, addresses, and company registration details if applicable

2. Background: Context of the agreement, brief description of the land, and parties' intentions

3. Definitions: Key terms used in the agreement, including Option Period, Option Fee, Purchase Price, Property, and Exercise Notice

4. Grant of Option: Core provision granting the exclusive right to purchase the land within the specified period

5. Option Period: Duration of the option and any extension mechanisms

6. Option Fee: Amount, payment terms, and whether refundable or non-refundable

7. Exercise of Option: Process and requirements for exercising the option, including notice requirements

8. Purchase Price: Agreed purchase price for the land if option is exercised, including any adjustment mechanisms

9. Property Details: Detailed description of the land, including certificate numbers, boundaries, and registered encumbrances

10. Conditions Precedent: Conditions that must be satisfied before the option can be exercised

11. Representations and Warranties: Statements of fact by both parties regarding their capacity and the property

12. Covenants: Obligations of parties during the option period, including maintenance of the property

13. Default and Termination: Events of default and consequences, termination rights

14. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

15. Execution: Signing requirements including notarization provisions