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Investment Partnership Agreement for Indonesia

Investment Partnership Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates an investment partnership between two or more parties. The document outlines capital contributions, profit-sharing arrangements, management rights, and operational procedures while ensuring compliance with Indonesian investment regulations, including Law No. 25/2007 on Investment and related regulations. It addresses key aspects such as foreign ownership restrictions, mandatory local partnership requirements, and specific sector-based investment conditions, while incorporating necessary safeguards for all parties involved in the investment relationship.

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What is a Investment Partnership Agreement?

The Investment Partnership Agreement serves as a foundational document for establishing investment collaborations in Indonesia, whether between domestic parties or involving foreign investors. This agreement type is essential when parties wish to combine their resources, expertise, and capital for a business venture while maintaining clear terms of engagement and regulatory compliance. The document must align with Indonesian investment law, particularly Law No. 25/2007 and Presidential Regulation No. 10/2021 on Investment Business Fields, which specify foreign ownership limitations and investment requirements. The agreement becomes particularly crucial when structuring investments in restricted sectors, implementing joint ventures, or establishing investment vehicles that require careful consideration of local partnership requirements and investment regulations.

What sections should be included in a Investment Partnership Agreement?

1. Parties: Identification of all parties to the agreement, including their legal status and registered addresses

2. Background: Context of the partnership, including business objectives and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Partnership Structure: Legal form of partnership, ownership percentages, and capital structure

5. Capital Contributions: Details of initial and subsequent capital contributions, including timing and form

6. Rights and Obligations of Partners: Specific responsibilities, duties, and rights of each partner

7. Management and Control: Decision-making processes, voting rights, and management structure

8. Profit and Loss Sharing: Distribution of profits and allocation of losses among partners

9. Business Operations: Day-to-day operation procedures and business management principles

10. Banking and Finance: Financial management procedures, including bank accounts and financial controls

11. Transfer of Interests: Rules regarding transfer of partnership interests, including right of first refusal

12. Term and Termination: Duration of partnership and circumstances for termination

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. Confidentiality: Protection of confidential information and trade secrets

15. General Provisions: Standard legal provisions including notices, amendments, and severability

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

1. Non-Competition: Restrictions on partners engaging in competing businesses - include when partners have other business interests

2. Intellectual Property: IP ownership and licensing provisions - include when the partnership involves creation or use of IP

3. Employment Matters: Employment policies and procedures - include when partnership will have employees

4. Foreign Investment Provisions: Specific provisions required for foreign investors - include with foreign partners

5. Exit Strategy: Detailed procedures for partner exit - include for complex partnerships or where specifically requested

6. Force Majeure: Provisions for unforeseen circumstances - include when operations are susceptible to external disruptions

7. Insurance: Required insurance coverage - include when partnership has significant physical assets or operational risks

What schedules should be included in a Investment Partnership Agreement?

1. Schedule 1 - Capital Contributions: Detailed breakdown of each partner's capital contributions

2. Schedule 2 - Business Plan: Initial business plan including financial projections and operational strategy

3. Schedule 3 - Assets Schedule: List of partnership assets and their agreed values

4. Schedule 4 - Partner Information: Detailed information about each partner, including KYC documentation

5. Schedule 5 - Management Structure: Organizational chart and management responsibilities

6. Appendix A - Required Licenses: Copies of business licenses and permits

7. Appendix B - Compliance Documents: Regulatory compliance certificates and documentation

8. Appendix C - Property Documents: Details of any property owned or leased by the partnership

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

Manufacturing

Real Estate

Infrastructure

Agriculture

Mining

Financial Services

Healthcare

Renewable Energy

E-commerce

Tourism

Education

Retail

Transportation

Telecommunications

Relevant Teams

Legal

Finance

Investment

Corporate Development

Compliance

Risk Management

Business Development

Corporate Strategy

Operations

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Investment Officer

Investment Director

Legal Counsel

Corporate Lawyer

Investment Manager

Business Development Director

Partnership Manager

Compliance Officer

Risk Manager

Managing Partner

Finance Director

Board Member

Company Secretary

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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