supply agreement template india
Renting a property in Indonesia involves a legal and cultural framework that can be quite different from the common law systems found in many Western countries. The tenancy agreement, known locally as a Perjanjian Sewa Menyewa, is governed by the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata) and shaped by local customs. For expatriates and locals alike, understanding these nuances is key to a secure and successful rental experience.
One of the most significant differences is the common payment structure. While monthly rent payments are the norm in many parts of the world, in Indonesia, it is extremely common to pay the entire rent for the full term of the lease upfront. For a one-year or two-year lease, this means the tenant is expected to pay 12 or 24 months’ worth of rent in a single transaction at the beginning of the tenancy. This practice can be a significant financial shock for expatriates who are not prepared for it. It is crucial that the total amount paid and the full period it covers are explicitly stated in the written agreement.
The Perjanjian Sewa Menyewa itself should be a detailed, written document. While verbal agreements can exist, they offer no real protection. A strong agreement should always be signed by both parties and, for added legal weight, executed on a meterai, a physical stamp duty seal (currently Rp 10,000). This stamp duty is required for a document to be presented as formal evidence in an Indonesian court. The agreement should be written in Bahasa Indonesia, or at the very least, a bilingual version should be created with a clause specifying which language will govern in the event of a dispute.
The rights and obligations are similar in principle to other countries. The landlord (pemilik) is responsible for major structural repairs, while the tenant (penyewa) is responsible for routine upkeep. The security deposit (uang jaminan) is standard practice. The agreement must clearly state the amount of the deposit and the conditions for its return. Unlike in some Western countries, there are no strict laws mandating that the deposit be held in a separate bank account, which makes having a clear, written agreement about its return even more critical.
Finally, the termination of the lease is a serious matter. Under the Indonesian Civil Code, a fixed-term lease cannot be terminated prematurely by either the landlord or the tenant, except by mutual agreement or if there has been a significant breach of contract. A landlord cannot simply evict a tenant for no reason before the end of the term. This provides strong security of tenure for the tenant, but it also means a tenant cannot easily break a lease if their plans change. Understanding these key differences, particularly the upfront payment system and the rigidity of a fixed-term lease, is essential for anyone looking to rent property in Indonesia.