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Commercial Lease Termination Letter for Indonesia

Commercial Lease Termination Letter Template for Indonesia

A formal document governed by Indonesian law that serves to officially notify the landlord or property owner of a tenant's intention to terminate a commercial lease agreement. This document adheres to the requirements set forth in the Indonesian Civil Code (KUH Perdata) and relevant property regulations, including specific provisions for commercial property leases. It includes essential elements such as property details, termination date, reference to the original lease agreement, and handover requirements. The letter ensures legal compliance while protecting both parties' interests during the lease termination process.

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What is a Commercial Lease Termination Letter?

The Commercial Lease Termination Letter is a crucial document used in Indonesian business practice when a commercial tenant needs to formally end their lease agreement. It is governed by Indonesian law, particularly the Civil Code (KUH Perdata) and commercial property regulations. This document should be used when a business plans to vacate commercial premises, whether at the end of the lease term or for early termination. The letter must include specific details required by Indonesian law, such as clear identification of the property, parties involved, termination date, and reference to the original lease agreement. It serves as official documentation of the tenant's intent to terminate and outlines the process for property handover, pending payments, and security deposit return. The document is particularly important in Indonesia's business environment, where formal written communication is essential for legal validity and proper business records.

What sections should be included in a Commercial Lease Termination Letter?

1. Header Information: Date, recipient's full name and address, property manager/landlord details, and reference numbers

2. Lease Reference: Details of the original lease agreement including date, parties involved, and property address

3. Termination Notice: Clear statement of intent to terminate the lease, citing the specific termination date

4. Legal Basis: Reference to the termination clause in the original lease and/or applicable Indonesian law

5. Current Status: Confirmation of rent payments status and condition of premises

6. Handover Requirements: Specific requirements for returning the premises, including condition expectations and key return

7. Contact Information: Details for future correspondence and coordination of premises handover

8. Closing: Formal closing, signature block, and company stamp if applicable

What sections are optional to include in a Commercial Lease Termination Letter?

1. Outstanding Payments: Section detailing any pending rent, utilities, or other charges that need to be settled before termination

2. Security Deposit: Information about the return of security deposit, including any deductions if applicable

3. Dispute Resolution: Include if there are any ongoing disputes or potential issues that need to be addressed

4. Early Termination Fee: Include if the termination is before the end of the lease term and requires payment of penalties

5. Maintenance Issues: Include if there are specific maintenance or repair issues that need to be addressed before handover

6. Business License Implications: Include if the termination affects any business licenses registered at the address

What schedules should be included in a Commercial Lease Termination Letter?

1. Property Inventory List: Detailed list of any fixtures, fittings, or equipment that need to be accounted for during handover

2. Payment Summary: Statement of account showing payment status, outstanding amounts, and security deposit details

3. Photographic Evidence: Current photographs of the premises condition

4. Original Lease Agreement: Copy of the original lease agreement for reference

5. Handover Checklist: Detailed checklist for premises inspection and return procedures

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Retail

Office Space

Manufacturing

Warehousing

Hospitality

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Healthcare

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Professional Services

Technology

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Industrial

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Relevant Teams

Legal

Operations

Facilities

Administration

Finance

Real Estate

Compliance

Property Management

Corporate Services

Business Operations

Relevant Roles

Facility Manager

Property Manager

Operations Director

Chief Financial Officer

Legal Counsel

Real Estate Manager

Business Operations Manager

Administrative Manager

Company Secretary

Compliance Officer

Office Manager

Store Manager

Regional Manager

Managing Director

Chief Executive 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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