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Stock Purchase Agreement for Indonesia

Stock Purchase Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that documents the terms and conditions for the purchase and sale of shares in a company. This document outlines the transaction structure, purchase price, payment terms, representations and warranties, conditions precedent, and closing requirements in accordance with Indonesian Company Law and Capital Market regulations. It includes specific provisions for regulatory compliance, including requirements from the Investment Coordinating Board (BKPM) for foreign investments and Financial Services Authority (OJK) regulations where applicable.

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What is a Stock Purchase Agreement?

The Stock Purchase Agreement serves as the primary transaction document for share acquisitions in Indonesia, governed by Law No. 40 of 2007 on Limited Liability Companies and related regulations. This document is essential when transferring ownership of shares between parties, whether in private transactions or as part of larger corporate restructurings. It must comply with Indonesian investment laws, particularly when involving foreign investors, and includes detailed provisions for the transfer process, regulatory approvals, and post-completion obligations. The agreement typically incorporates local law requirements such as notarial deeds for share transfers and specific forms for regulatory filings with the Ministry of Law and Human Rights.

What sections should be included in a Stock Purchase Agreement?

1. Parties: Identification of the seller(s) and purchaser(s), including complete legal names, registration numbers, and addresses

2. Background: Context of the transaction, including brief description of the company whose shares are being sold and the purpose of the agreement

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

4. Sale and Purchase of Shares: Core transaction terms including number of shares, price per share, and total consideration

5. Payment Terms: Structure and timing of payments, including any escrow arrangements

6. Conditions Precedent: Prerequisites that must be satisfied before completion of the transaction

7. Completion: Process and requirements for closing the transaction

8. Seller's Warranties and Representations: Statements of fact and assurances about the company, shares, and seller's capacity

9. Purchaser's Warranties and Representations: Statements regarding purchaser's capacity and authority to enter into the agreement

10. Covenants: Ongoing obligations of the parties before and after completion

11. Indemnification: Provisions for compensation in case of breach or misrepresentation

12. Confidentiality: Obligations regarding non-disclosure of transaction and company information

13. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

What sections are optional to include in a Stock Purchase Agreement?

1. Tag-Along Rights: Include when minority shareholders need protection to join in sale of majority stake

2. Drag-Along Rights: Include when majority shareholders need right to force minority to join in sale

3. Non-Competition: Include when seller needs to be restricted from competing post-sale

4. Employee Matters: Include when transaction affects key employees or management

5. Tax Matters: Include when specific tax arrangements or allocations need to be addressed

6. Earn-out Provisions: Include when part of purchase price is contingent on future performance

7. Foreign Investment Provisions: Include when purchaser is a foreign entity requiring compliance with Indonesian investment laws

8. Break Fee: Include when parties want to specify compensation for transaction failure

What schedules should be included in a Stock Purchase Agreement?

1. Schedule 1 - Share Details: Details of shares being transferred including share certificates and shareholder history

2. Schedule 2 - Company Information: Key corporate information including assets, licenses, and material contracts

3. Schedule 3 - Warranties: Detailed warranties and representations by the seller

4. Schedule 4 - Completion Requirements: Detailed list of documents and actions required for completion

5. Schedule 5 - Disclosed Matters: Exceptions to warranties and known issues

6. Schedule 6 - Company Financial Statements: Recent financial statements and management accounts

7. Appendix A - Form of Resignation Letters: Template resignation letters for departing directors if applicable

8. Appendix B - Transfer Instruments: Forms and documents required for share transfer under Indonesian law

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

Agreement Contract

Cost

Free to use
Relevant legal definitions










Clauses




































Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Energy

Mining

Retail

Healthcare

Agriculture

Transportation

Telecommunications

Consumer Goods

Professional Services

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Tax

Risk Management

Corporate Secretariat

Investment Relations

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Investment Director

Legal Counsel

Compliance Officer

Mergers & Acquisitions Director

Corporate Development Manager

Financial Controller

Tax Manager

Business Development Director

Risk Management Officer

Board Member

Investment Relations 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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