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The LOI Offer Letter is a crucial preliminary document in Indonesian business transactions, used to formalize initial discussions and set the framework for more detailed negotiations. It serves as a stepping stone toward definitive agreements while providing structure and clarity to the negotiation process. This document type is particularly important in Indonesia's business environment, where formal preliminary commitments are valued in business relationships. While generally non-binding, certain provisions like confidentiality and exclusivity can be made binding. The document must comply with Indonesian legal requirements, including the mandatory use of the Indonesian language alongside any foreign language version when Indonesian parties are involved. It typically includes proposed transaction terms, timelines, conditions precedent, and any preliminary commitments between parties.

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the recipient

2. Recipient Details: Full name, title, and address of the recipient

3. Subject Line: Clear indication that this is a Letter of Intent/Offer Letter and brief description of the proposed transaction or opportunity

4. Opening Paragraph: Formal introduction and context of the letter, including any previous discussions or meetings

5. Business Opportunity: Clear description of the proposed business relationship or opportunity

6. Key Terms: Main commercial terms, including proposed structure, pricing, or key conditions

7. Timeline: Proposed timeline for next steps and execution of definitive agreements

8. Confidentiality Statement: Brief statement about the confidential nature of the letter and proposed transaction

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

10. Closing and Signature: Formal closing, signature block for authorized representative