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Office Lease Agreement for Indonesia

Office Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for leasing commercial office space. This agreement outlines the rights and obligations of both the landlord and tenant, including rent payments, maintenance responsibilities, permitted use of the premises, and service charges. The document incorporates relevant provisions from the Indonesian Civil Code (KUHPerdata) and local property regulations, ensuring compliance with Indonesian commercial property laws and regional spatial planning requirements. It includes specific clauses addressing building management, utilities, insurance, and other operational aspects of commercial office occupancy.

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What is a Office Lease Agreement?

An Office Lease Agreement is a crucial legal document used when a business entity seeks to lease commercial office space in Indonesia. This document is essential for establishing a formal landlord-tenant relationship in commercial real estate transactions, governed by Indonesian law, particularly the Civil Code (KUHPerdata) and relevant property regulations. The agreement typically covers all aspects of the lease relationship, including financial terms, operational responsibilities, maintenance obligations, and compliance requirements. It's particularly important in Indonesia's growing commercial real estate market, where proper documentation and clear terms are essential for protecting both parties' interests and ensuring compliance with local property laws and regulations. The Office Lease Agreement should be carefully tailored to address specific requirements of Indonesian commercial property law, including provisions for foreign investment if applicable, and local building regulations.

What sections should be included in a Office Lease Agreement?

1. Parties: Identification of the Lessor and Lessee, including their complete legal names, addresses, and company registration details

2. Background: Context of the lease agreement, including brief description of the property and the parties' intention to enter into a lease arrangement

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

4. Demised Premises: Detailed description of the leased office space, including floor level, unit number, and total area

5. Lease Term: Duration of the lease, including commencement and expiration dates

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

7. Service Charges and Utilities: Additional charges for building services, utilities, and maintenance

8. Use of Premises: Permitted use of the office space and any restrictions

9. Maintenance and Repairs: Responsibilities of both parties regarding maintenance, repairs, and renovations

10. Insurance: Required insurance coverage for both parties

11. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

12. Landlord's Covenants: Obligations and warranties of the landlord

13. Tenant's Covenants: Obligations and warranties of the tenant

14. Default and Remedies: Events of default and corresponding remedies available to either party

15. Termination: Conditions and procedures for early termination of the lease

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

17. Execution: Signature blocks and execution details

What sections are optional to include in a Office Lease Agreement?

1. Force Majeure: Provisions for unforeseen circumstances preventing performance of obligations

2. Fit-out Works: Terms regarding initial renovation or customization of the office space

3. Option to Renew: Terms for lease renewal at the end of the initial term

4. Green Building Provisions: Environmental and sustainability requirements for buildings certified as green

5. Naming Rights: Rights to display company name/signage on the building

6. Parking: Allocation and terms of use for parking spaces

7. Break Clause: Provisions allowing early termination under specific conditions

8. COVID-19 or Pandemic Provisions: Specific arrangements regarding health emergencies and building access restrictions

What schedules should be included in a Office Lease Agreement?

1. Floor Plan: Detailed plan showing the exact location and layout of the leased premises

2. Inventory: List of fixtures, fittings, and furniture included in the lease

3. Service Charge Items: Detailed breakdown of service charge components and calculations

4. Building Rules and Regulations: Comprehensive rules governing the use of the building and common areas

5. Fit-out Guidelines: Technical specifications and requirements for office renovations

6. Handover Form: Condition report of the premises at the time of handover

7. Maintenance Schedule: Schedule of regular maintenance responsibilities for both parties

8. Insurance Requirements: Detailed specifications of required insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use

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