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Licence Rental Agreement for Indonesia

Licence Rental Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions under which a property owner (Licensor) grants permission to another party (Licensee) to use a specified property for an agreed purpose and duration. This agreement is structured to comply with Indonesian Civil Code requirements and local property regulations, incorporating provisions for license fees, permitted use, maintenance obligations, and termination conditions. It includes specific protections and obligations for both parties while ensuring alignment with Indonesian business licensing requirements and regional property laws.

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What is a Licence Rental Agreement?

The Licence Rental Agreement serves as a critical legal instrument in Indonesian business operations, providing a framework for temporary property use arrangements while maintaining the owner's underlying property rights. This document type is particularly relevant in situations where full tenancy rights are not intended or where flexibility in property use arrangements is desired. It must comply with Indonesian Civil Code (KUHPerdata) requirements, local property regulations, and business licensing laws. The agreement typically includes detailed provisions regarding property use, maintenance, fees, and termination rights, while incorporating necessary safeguards for both parties. It's commonly used in commercial, retail, and industrial contexts, particularly where the arrangement needs to be more flexible than a traditional lease but more structured than a simple permission to occupy.

What sections should be included in a Licence Rental Agreement?

1. Parties: Identification of the Licensor and Licensee with complete legal names and addresses

2. Background: Context of the agreement including brief description of the property and purpose of the license

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

4. Grant of License: Specific terms of the license grant, including scope and permitted use

5. Term and Renewal: Duration of the license and conditions for renewal

6. License Fee and Payment Terms: Amount, payment schedule, and method of payment

7. Security Deposit: Terms regarding security deposit amount, holding, and return

8. Use and Maintenance: Permitted use of property and maintenance responsibilities

9. Licensee's Obligations: Key responsibilities and obligations of the Licensee

10. Licensor's Obligations: Key responsibilities and obligations of the Licensor

11. Insurance and Liability: Insurance requirements and allocation of risks

12. Default and Remedies: Events of default and available remedies

13. Termination: Grounds for termination and consequences

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

15. Dispute Resolution: Process for resolving disputes

16. Notices: Method and addresses for formal communications

17. General Provisions: Standard boilerplate clauses including force majeure, entire agreement, etc.

What sections are optional to include in a Licence Rental Agreement?

1. Fit-out Works: Include when Licensee is permitted to make modifications to the property

2. Utilities and Services: Include when utilities are not included in the license fee

3. Sublicensing: Include when sublicensing rights are to be addressed

4. Environmental Compliance: Include for industrial or commercial properties with environmental risks

5. Intellectual Property: Include when the license involves use of trademarks or other IP

6. Government Approvals: Include when specific permits or licenses are required

7. Change of Control: Include for corporate licensees where ownership changes need to be regulated

8. Property Management Rules: Include for properties within managed complexes

What schedules should be included in a Licence Rental Agreement?

1. Schedule 1 - Property Description: Detailed description of the licensed property including floor plans and boundaries

2. Schedule 2 - License Fee Schedule: Detailed breakdown of fees, payment dates, and escalation terms

3. Schedule 3 - Condition Report: Initial condition of the property with photographs

4. Schedule 4 - Permitted Use: Detailed description of allowed activities and usage restrictions

5. Schedule 5 - Maintenance Schedule: List of maintenance responsibilities for each party

6. Schedule 6 - House Rules: Building or complex rules and regulations

7. Appendix A - Required Insurance: Detailed insurance requirements and minimum coverage

8. Appendix B - Form of Bank Guarantee: Template for bank guarantee if required as security

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

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions

































Clauses


































Relevant Industries

Real Estate

Retail

Commercial Office Space

Industrial

Hospitality

Co-working Spaces

Manufacturing

Logistics

Education

Healthcare

Technology

Entertainment

Food & Beverage

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Risk Management

Facilities Management

Commercial

Property Management

Business Development

Asset Management

Administration

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Director

Operations Manager

Commercial Director

Chief Financial Officer

Risk Manager

Compliance Officer

Business Development Manager

Asset Manager

Regional Director

Contract Administrator

Property Administrator

Site 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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