The Letter Of Intent Engineering is a crucial preliminary document used in Indonesian business practice when parties are seriously considering entering into an engineering services arrangement but need to establish initial terms and conduct due diligence before finalizing a binding agreement. It serves as a roadmap for negotiations while providing structure to the pre-contractual relationship, typically used in complex engineering projects where detailed assessment and planning are required before committing to a full contract. Under Indonesian law, particularly considering Law No. 11 of 2014 and related regulations, this document needs to address specific local requirements regarding engineering practices, professional qualifications, and potential foreign investment restrictions. The document typically precedes more comprehensive agreements like Engineering Services Agreements or Engineering, Procurement, and Construction (EPC) contracts, while providing protection for confidential information shared during negotiations.
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1. Date and Parties: Identification of all parties involved, including full legal names, addresses, and company registration details as per Indonesian requirements
2. Background/Recitals: Context of the proposed engineering project, including brief history of discussions and current status
3. Definitions: Key terms used throughout the letter, ensuring clarity and avoiding misinterpretation
4. Project Overview: High-level description of the proposed engineering project, including basic scope and objectives
5. Proposed Timeline: General timeline for both the negotiation period and anticipated project execution
6. Confidentiality: Binding provisions regarding the confidential treatment of shared information
7. Due Diligence: Framework for information sharing and evaluation process
8. Exclusivity Period: If applicable, period during which parties agree not to negotiate with others
9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified sections
10. Governing Law: Specification of Indonesian law as governing law
11. Signatures: Execution block for authorized representatives of all parties
1. Good Faith Deposit: Include when parties agree to a refundable deposit to demonstrate commitment
2. Regulatory Compliance: Specific section when project requires particular Indonesian engineering or construction permits
3. Foreign Investment Provisions: Include when one party is a foreign entity requiring investment approvals
4. Cost Allocation: Include when parties want to specify how costs during the evaluation period will be handled
5. Dispute Resolution: Optional detailed dispute resolution process for binding provisions
6. Language Requirements: Include when document needs to be bilingual (Indonesian and English)
1. Preliminary Scope of Work: High-level outline of proposed engineering services and deliverables
2. Initial Timeline: Preliminary project schedule and key milestones
3. Required Permits and Licenses: List of anticipated regulatory requirements and permits needed
4. Key Personnel: List of key team members and their roles from both parties
5. Preliminary Budget Framework: Indicative budget ranges or cost considerations, if agreed to include
Relevant legal definitions
Clauses
Relevant Industries
Infrastructure Development
Construction
Manufacturing
Oil and Gas
Mining
Renewable Energy
Transportation
Telecommunications
Industrial Development
Public Works
Urban Development
Maritime Engineering
Environmental Engineering
Aerospace
Chemical Processing
Relevant Teams
Legal
Engineering
Project Management
Business Development
Operations
Procurement
Risk Management
Compliance
Technical Services
Strategy
Investment
Executive Leadership
Relevant Roles
Engineering Director
Project Manager
Chief Technical Officer
Legal Counsel
Contract Manager
Business Development Manager
Chief Engineer
Technical Director
Procurement Manager
Risk Manager
Compliance Officer
Operations Director
Investment Manager
Managing Director
Chief Executive Officer
Chief Operating Officer
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