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Simple Commercial Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for leasing commercial property in Indonesia. This agreement outlines the rights and obligations of both the lessor and lessee, including rental payments, maintenance responsibilities, and property usage terms. It incorporates requirements from the Indonesian Civil Code (KUHPerdata) and relevant property regulations, while providing clear mechanisms for dispute resolution and lease termination. The document is structured to protect both parties' interests while ensuring compliance with local commercial property laws and regulations.

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What is a Simple Commercial Lease Agreement?

The Simple Commercial Lease Agreement serves as a fundamental legal instrument for commercial property leasing transactions in Indonesia. It is commonly used when businesses need to lease office space, retail locations, or other commercial properties for their operations. This document, governed by Indonesian law including the Civil Code (KUHPerdata) and relevant property regulations, establishes the essential terms of the lease relationship, including rent, duration, maintenance obligations, and permitted use of the premises. It provides necessary legal protection for both landlords and tenants while ensuring compliance with local property laws and business regulations. The agreement is particularly relevant for both domestic and foreign businesses establishing or expanding their presence in Indonesia's commercial real estate market.

What sections should be included in a Simple Commercial Lease Agreement?

1. Parties: Identification of the lessor and lessee, including complete legal names, addresses, and business registration numbers if applicable

2. Background: Context of the lease arrangement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Detailed description of the leased premises, including address, size, and permitted use

5. Lease Term: Duration of the lease, commencement date, and termination date

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and payment method

7. Utilities and Service Charges: Responsibility for utilities, maintenance fees, and other service charges

8. Use of Premises: Permitted commercial activities and restrictions on use

9. Maintenance and Repairs: Responsibilities of each party regarding property maintenance and repairs

10. Insurance: Required insurance coverage for both parties

11. Default and Remedies: Events of default and corresponding remedies

12. Termination: Conditions and procedures for lease termination

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Execution: Signature blocks and execution requirements

What sections are optional to include in a Simple Commercial Lease Agreement?

1. Building Rules and Regulations: For leases in commercial complexes or multi-tenant buildings

2. Fit-out Works: For premises requiring tenant improvements or modifications

3. Option to Renew: When offering the tenant an option to extend the lease term

4. Assignment and Subletting: When transfer or subletting rights are granted to tenant

5. Force Majeure: Specific provisions for unforeseen circumstances affecting lease obligations

6. Environmental Compliance: For properties where environmental regulations are significant

7. Signage Rights: When exterior or interior signage rights are granted

8. Parking: When specific parking rights are included in the lease

What schedules should be included in a Simple Commercial Lease Agreement?

1. Schedule 1 - Property Floor Plan: Detailed floor plan showing the leased premises

2. Schedule 2 - Inventory List: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charges Breakdown: Detailed breakdown of service charges and calculations

4. Schedule 4 - Building Rules: Detailed building rules and regulations

5. Schedule 5 - Handover Form: Property condition report at commencement of lease

6. Schedule 6 - Fit-out Guidelines: Technical specifications for permitted tenant improvements

7. Appendix A - Required Permits: List of mandatory permits and licenses for property use

8. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Tenancy Agreement

Cost

Free to use

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