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Financial Lease Contract for Indonesia

Financial Lease Contract Template for Indonesia

A Financial Lease Contract governed by Indonesian law is a comprehensive agreement that establishes the terms and conditions for the lease of assets where the lessee gains operational control while the lessor maintains ownership. The document complies with OJK Regulation No. 29/POJK.05/2014 and other relevant Indonesian financial services regulations, incorporating provisions for lease payments, asset maintenance, insurance requirements, and potential purchase options. It includes specific protections required under Indonesian consumer protection laws and addresses the rights and obligations of all parties involved in the leasing arrangement.

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What is a Financial Lease Contract?

The Financial Lease Contract is essential for businesses in Indonesia seeking to acquire assets through financial leasing arrangements rather than outright purchase. This document type is commonly used when a company needs access to expensive equipment, machinery, or other assets while preserving working capital. The agreement must comply with Indonesian financial services regulations, particularly OJK Regulation No. 29/POJK.05/2014 and the Civil Code. Financial Lease Contracts typically include detailed provisions regarding asset delivery, maintenance obligations, insurance requirements, payment terms, and end-of-lease arrangements. These agreements are particularly important in Indonesia's growing economy where businesses increasingly rely on financial leasing as a means of asset acquisition and capital efficiency.

What sections should be included in a Financial Lease Contract?

1. Parties: Identification of the lessor and lessee with complete legal names and addresses

2. Background: Context of the lease agreement and brief description of the transaction

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

4. Lease Object: Detailed description of the leased asset(s) and their specifications

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

6. Lease Payments: Payment terms, amounts, schedule, and method of payment

7. Delivery and Acceptance: Terms regarding the delivery and acceptance of the leased asset

8. Title and Ownership: Confirmation of lessor's ownership and lessee's rights to use

9. Use and Maintenance: Obligations regarding the use, maintenance, and care of the leased asset

10. Insurance: Requirements for insurance coverage of the leased asset

11. Representations and Warranties: Statements of fact and assurances from both parties

12. Events of Default: Circumstances constituting default and consequences

13. Termination: Conditions and procedures for early termination

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

15. Dispute Resolution: Procedures for resolving disputes between parties

What sections are optional to include in a Financial Lease Contract?

1. Purchase Option: Terms for lessee's option to purchase the asset at end of lease - include when offering purchase option

2. Security Deposit: Terms regarding security deposit - include when security deposit is required

3. Sublease and Assignment: Conditions for sublease or assignment - include when these rights are granted

4. Tax Provisions: Detailed tax obligations - include when complex tax arrangements apply

5. Force Majeure: Provisions for unforeseen circumstances - include when specific force majeure protection is needed

6. Environmental Compliance: Environmental obligations - include for assets with environmental impact

7. Import/Export Provisions: Requirements for cross-border leases - include for international transactions

What schedules should be included in a Financial Lease Contract?

1. Schedule 1 - Asset Description: Detailed technical specifications and description of leased asset(s)

2. Schedule 2 - Payment Schedule: Detailed breakdown of lease payments, dates, and amounts

3. Schedule 3 - Delivery and Acceptance Protocol: Form for documenting delivery and acceptance of asset

4. Schedule 4 - Insurance Requirements: Detailed insurance specifications and requirements

5. Schedule 5 - Maintenance Schedule: Required maintenance procedures and schedules

6. Appendix A - Conditions Precedent: List of conditions to be met before lease effectiveness

7. Appendix B - Form of Purchase Option Notice: Template for exercising purchase option if applicable

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

Financing Agreement

Cost

Free to use
Relevant legal definitions








































Clauses

































Relevant Industries

Manufacturing

Construction

Transportation

Mining

Agriculture

Healthcare

Information Technology

Telecommunications

Heavy Industry

Aviation

Maritime

Real Estate

Infrastructure

Energy

Relevant Teams

Legal

Finance

Procurement

Operations

Risk Management

Compliance

Treasury

Credit

Business Development

Asset Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Contract Manager

Risk Manager

Treasury Manager

Procurement Manager

Operations Director

Financial Controller

Compliance Officer

Asset Manager

Credit Manager

Business Development Manager

Finance Manager

Legal Manager

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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