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The Intention Letter Model under Indonesian law serves as a crucial preliminary document in business negotiations and potential transactions. It is commonly used when parties wish to formalize their initial understanding and outline the framework for future negotiations, while maintaining flexibility before entering into a binding agreement. This document type is particularly relevant in Indonesia's business environment, where it helps bridge the gap between informal discussions and formal contracts, providing a structured approach to negotiations while respecting local legal requirements and business customs. The letter typically includes provisions about the proposed transaction, confidentiality obligations, and any exclusive negotiation periods, while clearly stating its generally non-binding nature. It must comply with Indonesian Civil Code requirements and relevant commercial regulations, making it a valuable tool for both domestic and international business relationships.

1. Letter Header: Formal business letter header including date, reference number, and proper addressing of the recipient

2. Subject Line: Clear indication of the letter's purpose and proposed transaction/relationship

3. Introduction of Parties: Full legal names and addresses of both parties

4. Background and Purpose: Brief context of the proposed relationship or transaction

5. Proposed Transaction: Overview of the main elements of the proposed transaction or relationship

6. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions

7. Duration and Termination: Period for which the letter remains valid and conditions for termination

8. Contact Details: Names and contact information of key representatives from each party

9. Closing and Signatures: Formal closing, signature blocks for authorized representatives