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Investment Commitment Agreement for Indonesia

Investment Commitment Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes investment commitments between parties, typically involving foreign or domestic investors and Indonesian target companies. The agreement details the terms, conditions, and obligations related to the investment, ensuring compliance with Indonesian investment regulations, including Law No. 25 of 2007 on Investment and related regulations. It addresses key aspects such as investment amount, payment schedule, conditions precedent, regulatory approvals, and governance rights, while incorporating necessary safeguards and compliance measures required under Indonesian law.

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Investment Commitment Agreement

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What is a Investment Commitment Agreement?

The Investment Commitment Agreement serves as a crucial document in Indonesian investment transactions, particularly in contexts where detailed investment terms and conditions need to be formally established between investing parties and target entities. This agreement type is commonly used in both foreign and domestic investment scenarios in Indonesia, requiring careful consideration of the Investment Law (Law No. 25 of 2007) and related regulations. It is essential for transactions involving significant capital deployment, strategic partnerships, or corporate expansions in Indonesia. The document typically includes comprehensive details about investment structure, regulatory compliance requirements, corporate governance arrangements, and investment protection mechanisms, while ensuring alignment with Indonesia's investment policies and restrictions. This agreement becomes particularly important in sectors subject to specific investment regulations or foreign ownership limitations under Indonesian law.

What sections should be included in a Investment Commitment Agreement?

1. Parties: Identification of the parties entering into the agreement, including their complete legal names, registration numbers, and addresses

2. Background: Context of the investment relationship, business objectives, and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Investment Commitment: Details of the investment amount, form of investment, and payment/contribution schedule

5. Conditions Precedent: Conditions that must be satisfied before the investment commitment becomes effective

6. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and compliance with laws

7. Investment Process: Procedures and mechanisms for executing the investment, including timing and documentation requirements

8. Rights and Obligations: Detailed responsibilities and rights of each party in relation to the investment

9. Regulatory Compliance: Commitments to comply with Indonesian investment laws, reporting requirements, and other regulatory obligations

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Confidentiality: Obligations regarding the protection and non-disclosure of confidential information

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and procedure for resolving disputes

13. General Provisions: Standard provisions including notices, amendments, entire agreement, and language requirements

What sections are optional to include in a Investment Commitment Agreement?

1. Investment Monitoring: Used when parties want to establish specific mechanisms for monitoring the use and progress of the investment

2. Corporate Governance: Include when the investment involves rights relating to company management or board representation

3. Anti-Dilution Rights: Required when protecting against future dilution of investment value is relevant

4. Tag-Along and Drag-Along Rights: Include when parties want to establish exit rights and obligations

5. Environmental and Social Compliance: Important for investments in sectors with significant environmental or social impact

6. Foreign Exchange Provisions: Required when investment involves foreign currency considerations

7. Tax Provisions: Include when specific tax arrangements or implications need to be addressed

8. Force Majeure: Optional but recommended for long-term investment commitments

What schedules should be included in a Investment Commitment Agreement?

1. Investment Schedule: Detailed breakdown of investment amounts, tranches, and timing

2. Corporate Information: Company details, shareholding structure, and corporate documents

3. Required Approvals: List of regulatory and corporate approvals needed for the investment

4. Business Plan: Agreed business objectives and milestones related to the investment

5. Warranties: Detailed warranties given by each party

6. Form of Investment Notices: Template notices for various investment-related communications

7. Compliance Requirements: Detailed regulatory compliance checklist and requirements

8. Key Performance Indicators: Metrics for measuring investment performance and success

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

Cost

Free to use
Relevant legal definitions














































Clauses




































Relevant Industries

Technology and Digital Economy

Manufacturing

Infrastructure Development

Natural Resources

Renewable Energy

Agriculture and Plantation

Financial Services

Healthcare and Pharmaceuticals

Tourism and Hospitality

E-commerce

Mining and Minerals

Real Estate and Property Development

Transportation and Logistics

Education

Relevant Teams

Legal

Finance

Investment

Corporate Development

Compliance

Risk Management

Strategic Planning

Corporate Secretary Office

Business Development

Regulatory Affairs

Project Management

Due Diligence

Treasury

Corporate Communications

Board Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Investment Officer

Investment Director

Legal Director

Corporate Secretary

Investment Manager

General Counsel

Compliance Officer

Business Development Director

Strategy Director

Financial Controller

Risk Management Officer

Corporate Development Manager

Investment Analyst

Legal Counsel

Regulatory Affairs Manager

Board of Directors Member

Investment Committee Member

Project Finance 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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