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Asset Purchase Agreement Term Sheet for Indonesia

Asset Purchase Agreement Term Sheet Template for Indonesia

An Asset Purchase Agreement Term Sheet under Indonesian law serves as a preliminary document outlining the key terms and conditions for the proposed purchase of assets. This document, while mostly non-binding except for specific provisions such as confidentiality and exclusivity, establishes the framework for the subsequent definitive agreement. It addresses crucial elements including asset identification, purchase price, payment terms, and conditions precedent, while incorporating specific considerations required under Indonesian law and regulatory framework. The document is particularly important in the Indonesian context where foreign investment regulations and local corporate law requirements must be carefully considered in structuring asset transactions.

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What is a Asset Purchase Agreement Term Sheet?

The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in asset acquisition transactions in Indonesia. It is typically prepared after initial commercial discussions but before detailed due diligence and definitive documentation. The document serves to memorialize the parties' preliminary understanding of key transaction terms, including asset scope, pricing, payment structure, and critical conditions. While primarily non-binding, it often includes binding provisions on confidentiality, exclusivity, and costs. The term sheet must consider Indonesian legal requirements, including foreign investment restrictions, regulatory approvals, and local corporate law provisions. It forms the basis for negotiating the definitive asset purchase agreement and guides legal due diligence. This document is particularly important in the Indonesian context where clear preliminary agreements help navigate complex regulatory requirements and establish a solid foundation for the transaction.

What sections should be included in a Asset Purchase Agreement Term Sheet?

1. Parties: Identification of the seller and purchaser, including complete legal names, company registration numbers, and addresses

2. Background: Brief context of the transaction and relationship between the parties

3. Definitions: Key terms used throughout the term sheet

4. Transaction Overview: High-level description of the proposed asset purchase transaction

5. Assets to be Purchased: Description of the assets included in the transaction

6. Purchase Price: Proposed consideration and payment terms

7. Key Conditions Precedent: Essential conditions that must be satisfied before closing

8. Timeline: Proposed schedule for due diligence, definitive agreements, and closing

9. Exclusivity: Terms of exclusive negotiation period

10. Confidentiality: Basic confidentiality obligations regarding the transaction

11. Costs: Allocation of transaction costs between parties

12. Governing Law: Specification of Indonesian law as governing law

13. Binding Effect: Clear statement of which provisions are binding and non-binding

14. Execution: Signature blocks and execution requirements

What sections are optional to include in a Asset Purchase Agreement Term Sheet?

1. Employee Matters: Terms regarding transfer of employees - include if assets include business operations with employees

2. Regulatory Approvals: Required regulatory clearances - include if transaction requires specific regulatory approvals

3. Tax Structure: Proposed tax treatment - include if there are specific tax structuring considerations

4. Intellectual Property: Special provisions for IP transfers - include if significant IP assets are involved

5. Environmental Matters: Environmental considerations - include if assets include industrial or potentially contaminated properties

6. Financing: Financing arrangements - include if purchase is subject to financing conditions

7. Foreign Investment Provisions: Special provisions for foreign investment - include if purchaser is a foreign entity

What schedules should be included in a Asset Purchase Agreement Term Sheet?

1. Asset Schedule: Preliminary list of material assets to be included in the transaction

2. Excluded Assets Schedule: Preliminary list of specifically excluded assets

3. Price Calculation Schedule: Overview of purchase price calculation methodology if complex

4. Key Permits Schedule: List of material permits and licenses associated with the assets

5. Timeline Schedule: Detailed transaction timeline and key milestones

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






































Clauses


























Relevant Industries

Manufacturing

Real Estate

Technology

Energy

Mining

Agriculture

Retail

Healthcare

Financial Services

Infrastructure

Telecommunications

Hospitality

Transportation

Consumer Goods

Industrial Equipment

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Risk Management

Compliance

Business Development

Asset Management

Due Diligence

Corporate Secretarial

Tax

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Managing Director

Finance Director

Legal Director

Head of Mergers & Acquisitions

Corporate Development Manager

Investment Manager

Legal Counsel

Corporate Secretary

Business Development Director

Asset Manager

Transaction Manager

Due Diligence Manager

Risk Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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