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Building Lease Agreement for Indonesia

Building Lease Agreement Template for Indonesia

A Building Lease Agreement governed by Indonesian law is a legally binding contract that establishes the terms and conditions under which a building owner (lessor) grants the right to use and occupy a building or portion thereof to a tenant (lessee) for a specified period in exchange for rent. This agreement is subject to Indonesian property laws, particularly the Indonesian Civil Code and Law No. 28 of 2002 on Buildings, and includes provisions for rent payment, maintenance responsibilities, permitted use, insurance requirements, and compliance with local building regulations and permits.

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What is a Building Lease Agreement?

A Building Lease Agreement is essential for any arrangement where a building owner wishes to lease their property to a tenant in Indonesia. This document is crucial for both commercial and residential purposes, establishing the legal framework for the lease relationship while ensuring compliance with Indonesian property laws and regulations. The agreement covers all essential aspects of the lease arrangement, including detailed descriptions of the premises, rental terms, maintenance obligations, and compliance requirements with local building codes. It's particularly important in the Indonesian context due to specific regulatory requirements under the Indonesian Civil Code, Building Law, and local property regulations. The document protects both parties' interests by clearly defining rights, responsibilities, and remedies in case of default.

What sections should be included in a Building Lease Agreement?

1. Parties: Identification of the lessor (building owner) and lessee with complete legal names and addresses

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

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

4. Demised Premises: Detailed description of the leased property including exact location, floor area, and included facilities

5. Lease Term: Duration of the lease, commencement date, and conditions for renewal

6. Rent and Security Deposit: Rental amount, payment terms, security deposit details, and review mechanisms

7. Use of Premises: Permitted use of the building and any restrictions

8. Maintenance and Repairs: Responsibilities of both parties regarding building maintenance and repairs

9. Utilities and Services: Arrangements for utilities, service charges, and building management

10. Insurance: Required insurance coverage for both parties

11. Compliance with Laws: Obligations to comply with Indonesian building regulations and permits

12. Default and Termination: Events of default and termination procedures

13. Return of Premises: Conditions for returning the premises at lease end

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

15. Dispute Resolution: Procedures for resolving disputes

What sections are optional to include in a Building Lease Agreement?

1. Fit-out Works: Used when tenant improvements or modifications are permitted, specifying approval processes and conditions

2. Assignment and Subletting: Include when transfer of lease rights or subletting might be considered

3. Force Majeure: Optional but recommended section addressing unforeseeable circumstances

4. Green Building Requirements: Include for buildings with specific environmental certifications or requirements

5. Signage Rights: Include when tenant requires external or internal signage rights

6. Parking: Include when parking facilities are part of the lease

7. Common Areas: Include for multi-tenant buildings with shared facilities

8. Break Clause: Include when early termination options are offered

9. Right of First Refusal: Include when tenant is granted priority for lease renewal or purchase

What schedules should be included in a Building Lease Agreement?

1. Floor Plans: Detailed plans showing the leased area and measurements

2. Building Rules and Regulations: Specific rules governing the use and operation of the building

3. Service Charge Schedule: Breakdown of service charges and calculation method

4. Fit-out Guidelines: Technical specifications for any permitted tenant improvements

5. Handover Condition Report: Documentation of premises condition at commencement

6. Building Permits and Certificates: Copies of relevant regulatory approvals

7. Maintenance Schedule: Schedule of regular maintenance responsibilities

8. Building Insurance Certificates: Copies of current building insurance documentation

9. Utilities and Services Agreement: Detailed arrangements for utility provisions and payments

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

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Real Estate

Commercial Property

Retail

Manufacturing

Office Space

Hospitality

Healthcare

Education

Banking and Finance

Technology

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Industrial

Logistics and Warehousing

Relevant Teams

Legal

Facilities Management

Real Estate

Finance

Operations

Compliance

Risk Management

Property Management

Business Development

Administration

Relevant Roles

Property Manager

Facilities Manager

Real Estate Director

Legal Counsel

Chief Financial Officer

Operations Manager

Business Development Manager

Asset Manager

Compliance Officer

Real Estate Agent

Commercial Director

Property Administrator

Building Manager

Leasing Manager

Risk Manager

Industries








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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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