Licensing is one of several business regulating instruments which enable Intellectual Property Rights (IPR) to be transferable and commercialized. However, it is faced with several issues: (1) What is the arrangement of IPR license agreement in Indonesia like?; (2) How does the law on legal contracts provide IPR-related practitioners with legal protection? The research findings reveal that there has been a complete set of laws in the field of intellectual property in Indonesia which cover Copyrights, Trademark, Patent, Lay-out Design of Integrated Circuit, Industrial Design, Trade Secret, and Protection of Plant Variety. The law regarding legal contracts provides any related parties involved in IPR licensing practices in Indonesia with legal protection by taking in two references: the IPR laws and Book 3 of Code of Laws which are put into a legal contract.