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Pre Partnership Agreement for Indonesia

Pre Partnership Agreement Template for Indonesia

A Pre Partnership Agreement under Indonesian law is a preliminary legal document that establishes the framework for parties to explore and negotiate a potential business partnership. This document, governed by Indonesian civil and commercial law, outlines the terms and conditions for the evaluation period before entering into a formal partnership arrangement. It includes provisions for due diligence, confidentiality, cost allocation, and good faith negotiations while ensuring compliance with Indonesian regulatory requirements and business practices.

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What is a Pre Partnership Agreement?

The Pre Partnership Agreement is a crucial document used in Indonesian business practice when two or more parties wish to explore a potential business collaboration while maintaining legal protections and clarity during the preliminary phase. This document is particularly important in the Indonesian context, where business relationships often require careful cultivation and due diligence before formal commitments. It provides a structured framework for information sharing, resource allocation, and negotiation parameters while ensuring compliance with Indonesian regulations. The agreement typically precedes more formal arrangements such as joint ventures, distribution agreements, or strategic partnerships, and helps parties manage expectations and protect their interests during the exploratory phase.

What sections should be included in a Pre Partnership Agreement?

1. Parties: Identification and details of all potential partners, including legal names, addresses, and registration numbers

2. Background: Context of the proposed partnership, including business objectives and rationale for collaboration

3. Definitions: Key terms used throughout the agreement, ensuring clear interpretation

4. Purpose and Scope: Outline of the intended partnership's scope and objectives during the preliminary phase

5. Duration: Timeline for the pre-partnership period and conditions for extension

6. Due Diligence: Framework for information sharing and evaluation process

7. Confidentiality: Obligations regarding confidential information shared during the preliminary phase

8. Costs and Expenses: Allocation of costs during the pre-partnership phase

9. Good Faith Negotiations: Commitment to negotiate the final partnership agreement in good faith

10. Termination: Circumstances and process for ending the pre-partnership arrangement

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

12. Entire Agreement: Confirmation that this document represents the complete understanding between parties

What sections are optional to include in a Pre Partnership Agreement?

1. Exclusivity: Prevents parties from negotiating similar arrangements with others during the pre-partnership period

2. Intellectual Property Rights: Protection and usage of IP during the preliminary phase, particularly relevant for technology or brand-focused partnerships

3. Non-Competition: Restrictions on competitive activities during the preliminary phase

4. Resource Commitment: Specific commitments of resources or personnel during the evaluation period

5. Regulatory Compliance: Specific regulatory requirements relevant to the intended partnership sector

6. Break Fee: Compensation if either party withdraws from negotiations under specific circumstances

7. Public Announcements: Rules for making public statements about the potential partnership

What schedules should be included in a Pre Partnership Agreement?

1. Schedule 1: Business Plan Overview: Preliminary business plan or concept for the proposed partnership

2. Schedule 2: Due Diligence Requirements: List of required documents and information for due diligence

3. Schedule 3: Timeline: Detailed timeline for the pre-partnership phase including key milestones

4. Schedule 4: Confidential Information: Categories and specific types of confidential information covered

5. Schedule 5: Authorized Representatives: List of authorized representatives from each party for negotiations

6. Appendix A: Required Regulatory Approvals: List of necessary regulatory approvals for the intended partnership

7. Appendix B: Form of Non-Disclosure Agreement: Detailed NDA terms for third parties involved in the process

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 | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions





























Clauses



























Relevant Industries

Manufacturing

Technology

E-commerce

Financial Services

Mining and Resources

Agriculture

Healthcare

Retail

Infrastructure

Real Estate

Tourism and Hospitality

Education

Transportation and Logistics

Energy

Telecommunications

Relevant Teams

Legal

Business Development

Corporate Strategy

Finance

Operations

Risk and Compliance

Commercial

International Business

Corporate Affairs

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Chief Financial Officer

Partnership Manager

Strategy Director

Commercial Director

Operations Director

Investment Manager

Corporate Secretary

Risk Manager

Compliance Officer

General 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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