Lease Requirements in Indonesia

Indonesian law provides a framework for agreements, but absolute security emerges from the wording within the body of the agreement contract itself.

Legal Disclaimer: This guide provides general legal information. Always seek a legal professional for advice.

Validity of Oral and Written Agreements

Under the Civil Code, unwritten agreements can be legally upheld with transaction proof and witnesses, but this is highly not recommended. A Written Agreement (Perjanjian Sewa) is always the primary requirement for broker agents, developers, and independent owners.

Contracts can also be officially Validated (Waarmerking) or Legalized by a Notary to weigh heavier before a district court – yet simply signing onto an official duty stamp (Materai, currently IDR 10,000) also certifies proof that the document is tax-burdened.

Mandatory Contents of the Contract

Must summarize the following articles and paragraphs:

1. Identity of the Parties: Includes Photocopy of ID Card (KTP) and NPWP (Tax ID) for tenants and owners. If a foreigner, implies KITAS/Passport.
2. Details of the Rental Object: Exact form of residence, unit, apartment with a valid RT/RW address, block, electricity status, and furniture (Furnished vs Unfurnished).
3. Time Period: Rental duration from the operational Start Date to the end of the grace consensus.
4. Price and Billing Method: As well as unifying the Deposit money clause as damage insurance funding.
5. Exception Clauses: Specifically Article 1266 of the Civil Code if cancellation is decided due to violation.
6. Force Majeure Clause: If a building cannot be inhabited due to disaster, pandemic, riot, or abrupt policy.