The Commercial Lease Letter of Intent is a crucial preliminary document in Indonesian commercial real estate transactions, typically used before entering into a formal lease agreement. It serves as a roadmap for negotiations and demonstrates serious intent between parties while outlining key commercial terms and conditions. While most provisions are non-binding, certain elements like confidentiality and exclusivity periods may be explicitly binding. The document must align with Indonesian legal requirements, including the Civil Code (KUHPerdata) and commercial property regulations. It's particularly important in complex commercial lease situations where parties need to establish clear understanding before investing time and resources in detailed lease negotiations and due diligence.
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1. Date and Parties: Full legal names and addresses of the prospective landlord and tenant, including company registration details if applicable
2. Property Description: Detailed description of the commercial property, including exact address, floor/unit number, and approximate square footage
3. Commercial Terms: Key financial terms including proposed rental rate, estimated service charges, and security deposit requirements
4. Proposed Lease Term: Intended duration of the lease, including proposed commencement date and any options for renewal
5. Intended Use: Specified permitted use of the premises and any key operational requirements
6. Timeline: Expected timeline for lease negotiation, documentation, and completion
7. Non-Binding Nature: Clear statement that the LOI is generally non-binding except for specific provisions
8. Exclusivity Period: Period during which the landlord agrees not to negotiate with other potential tenants
9. Confidentiality: Statement regarding the confidential nature of negotiations and any shared information
1. Due Diligence Period: Include when tenant requires time to conduct property investigations or verify legal status
2. Fit-out Provisions: Include when premises require significant tenant improvements or modifications
3. Conditions Precedent: Include when either party needs to fulfill specific conditions before proceeding with the lease
4. Broker Representation: Include when real estate brokers or agents are involved in the transaction
5. Language Requirements: Include when document needs to be bilingual (Indonesian/English) as per Law No. 24 of 2009
6. Governing Law Statement: While implied, may be explicitly included for international tenants
1. Floor Plan: Preliminary floor plan or layout drawing of the premises
2. Photos: Current photographs of the premises if available
3. Building Specifications: Basic building specifications and facilities information
4. Preliminary Cost Schedule: Breakdown of estimated rent, service charges, and other costs
5. Timeline Schedule: Detailed timeline for lease negotiation, documentation, and completion milestones
Relevant legal definitions
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Real Estate
Retail
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Technology
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Manufacturing
Education
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Entertainment and Media
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Relevant Teams
Legal
Finance
Operations
Facilities Management
Real Estate
Procurement
Risk Management
Business Development
Property Management
Corporate Services
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Facilities Manager
Property Manager
Legal Counsel
Commercial Director
Operations Manager
Business Development Manager
Real Estate Agent
Leasing Manager
Asset Manager
Risk Manager
Procurement Manager
Regional Manager
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