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Standard Commercial Lease Agreement for Indonesia

Standard Commercial Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for leasing commercial property between a landlord and a business tenant. The agreement complies with the Indonesian Civil Code (KUH Perdata) and relevant property regulations, detailing crucial aspects such as rent payments, maintenance obligations, permitted use, and tenure terms. It incorporates specific requirements under Indonesian commercial property laws, including local spatial planning regulations and building codes, while providing clear rights and obligations for both parties in accordance with Indonesian legal standards.

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What is a Standard Commercial Lease Agreement?

The Standard Commercial Lease Agreement is a fundamental legal document used in Indonesia for establishing a formal landlord-tenant relationship in commercial property contexts. This agreement is essential when a property owner wishes to lease commercial space to a business entity, ensuring compliance with Indonesian property laws, including the Civil Code (KUH Perdata) and Law No. 28 of 2002 on Buildings. The document comprehensively covers critical aspects such as rental terms, maintenance responsibilities, permitted commercial activities, and dispute resolution procedures, while incorporating specific Indonesian legal requirements regarding property use, registration, and commercial operations. It serves as a crucial tool for protecting both landlord and tenant interests while ensuring adherence to local regulatory frameworks and commercial property practices.

What sections should be included in a Standard Commercial Lease Agreement?

1. Parties: Identification of the landlord and tenant with complete legal names and addresses

2. Background: Context of the lease arrangement and brief description of the property

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

4. Demised Premises: Detailed description of the leased property including exact measurements and boundaries

5. Lease Term: Duration of the lease, commencement date, and any renewal options

6. Rent and Security Deposit: Rental amount, payment terms, security deposit requirements, and review mechanisms

7. Permitted Use: Specified commercial activities allowed in the premises

8. Maintenance and Repairs: Responsibilities of each party regarding property maintenance and repairs

9. Utilities and Services: Provisions regarding utility services and payment responsibilities

10. Insurance: Required insurance coverage for both parties

11. Compliance with Laws: Obligations to comply with Indonesian laws and regulations

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Conditions and procedures for lease termination

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

15. Dispute Resolution: Procedures for resolving disputes including jurisdiction

What sections are optional to include in a Standard Commercial Lease Agreement?

1. Improvements and Alterations: Include when tenant is permitted to make modifications to the premises

2. Common Areas: Include when the property has shared facilities or spaces

3. Assignment and Subletting: Include when transfer of lease rights is to be permitted

4. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

5. Environmental Compliance: Include for properties where environmental regulations are significant

6. Signage Rights: Include when exterior or interior signage is relevant

7. Parking: Include when parking facilities are part of the lease

8. Building Rules: Include when the premises are part of a larger building complex

9. Break Clause: Include when early termination options are to be provided

10. Trade License Requirements: Include when specific business licenses are required for the permitted use

What schedules should be included in a Standard Commercial Lease Agreement?

1. Floor Plan: Detailed plan showing the exact areas included in the lease

2. Inventory: List of any furnishings or equipment included in the lease

3. Service Charges: Breakdown of service charges and calculation method

4. Building Rules and Regulations: Detailed rules governing the use of the premises and common areas

5. Fit-out Guidelines: Specifications for any permitted tenant improvements

6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities

7. Insurance Requirements: Specific insurance requirements and minimum coverage levels

8. Handover Protocol: Procedures and checklist for property handover

9. Rent Review Mechanism: Detailed procedures for rent reviews

10. Required Permits: List of mandatory permits and licenses for property use

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

Rental Agreement

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Retail

Office Space

Industrial

Hospitality

Healthcare

Technology

Financial Services

Food and Beverage

Education

Professional Services

Manufacturing

Logistics and Warehousing

Entertainment

Relevant Teams

Legal

Real Estate

Facilities Management

Finance

Operations

Procurement

Risk and Compliance

Property Management

Business Development

Administrative Services

Relevant Roles

Property Manager

Real Estate Director

Facilities Manager

Legal Counsel

Commercial Director

Chief Financial Officer

Operations Manager

Business Development Manager

Procurement Manager

Risk Manager

Compliance Officer

Asset Manager

Real Estate Agent

Property Administrator

Leasing 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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