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Permission Agreement for Indonesia

Permission Agreement Template for Indonesia

A Permission Agreement under Indonesian law is a legally binding document that establishes the terms and conditions under which one party (the grantor) grants specific rights, access, or usage permissions to another party (the grantee). The agreement is governed by Indonesian Civil Code (KUHPerdata) and relevant sector-specific regulations, ensuring compliance with local legal requirements while providing a clear framework for the permitted activities, limitations, and obligations of both parties. It includes essential provisions for duration, scope, payment terms, and termination conditions, tailored to meet the specific needs of the permission being granted.

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What is a Permission Agreement?

The Permission Agreement serves as a crucial legal instrument in Indonesian business and regulatory practice, establishing clear parameters for authorized usage of assets, facilities, intellectual property, or other rights. This document type is particularly important when formal authorization is required for specific activities while protecting the interests of both the grantor and grantee. The agreement must comply with Indonesian Civil Code requirements and often intersects with sector-specific regulations, making it essential for businesses operating in Indonesia. The Permission Agreement typically includes detailed terms about the scope of permission, duration, usage conditions, fees, and compliance requirements, providing a comprehensive framework for managing permissions in various contexts, from technology licensing to property access rights.

What sections should be included in a Permission Agreement?

1. Parties: Identification and details of the permission grantor and grantee, including their legal status and authority to enter into the agreement

2. Background: Context of the agreement, including the subject matter of the permission and the parties' relationship

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Grant of Permission: Explicit statement of the permission being granted, including scope and any limitations

5. Term and Duration: Period for which the permission is granted, including start date and end date if applicable

6. Conditions of Use: Specific terms and conditions governing how the permission may be exercised

7. Fees and Payment: Financial terms including any fees, royalties, or payments associated with the permission

8. Representations and Warranties: Statements of fact and guarantees made by each party

9. Termination: Circumstances under which the permission may be terminated and the process for termination

10. Governing Law: Specification of Indonesian law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements compliant with Indonesian law

What sections are optional to include in a Permission Agreement?

1. Confidentiality: Terms regarding confidential information, needed when the permission involves access to sensitive information

2. Sub-licensing Rights: Terms regarding whether and how the permission may be extended to third parties

3. Intellectual Property Rights: Detailed provisions about IP ownership and usage when the permission involves IP assets

4. Insurance and Indemnity: Risk allocation provisions, needed for permissions involving operational or liability risks

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for long-term permissions

6. Assignment: Terms regarding the transfer of rights and obligations, important for corporate permissions

7. Compliance with Laws: Specific regulatory compliance requirements, needed for regulated activities

8. Reporting and Audit Rights: Monitoring provisions, relevant when usage tracking is important

What schedules should be included in a Permission Agreement?

1. Schedule 1 - Permitted Activities: Detailed description of activities allowed under the permission

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment terms, and calculation methods

3. Schedule 3 - Technical Requirements: Technical specifications or requirements for exercising the permission

4. Schedule 4 - Authorized Representatives: List of authorized representatives for both parties

5. Appendix A - Form of Notice: Template for formal notices required under the agreement

6. Appendix B - Compliance Requirements: Specific regulatory or operational compliance requirements

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

Technology

Real Estate

Manufacturing

Education

Research and Development

Media and Entertainment

Healthcare

Telecommunications

Mining and Resources

Agriculture

Financial Services

Creative Industries

Relevant Teams

Legal

Compliance

Operations

Business Development

Facilities Management

Risk Management

Corporate Affairs

Commercial

Property Management

Intellectual Property

Procurement

Administration

Relevant Roles

Legal Counsel

Compliance Officer

Contract Manager

Business Development Manager

Operations Director

Facility Manager

IP Rights Manager

Property Manager

Risk Manager

Corporate Secretary

General Manager

Chief Legal Officer

Licensing Manager

Partnership 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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