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A Commitment Agreement sets out formal promises between parties under Indonesian law, typically used when one side needs to guarantee specific actions or deliverables to another. These binding contracts are common in business partnerships, government procurement, and investment deals where clear accountability matters.

In Indonesia's legal framework, these agreements carry special weight because they create enforceable obligations backed by remedies if promises are broken. Companies often use them to secure important business relationships, while government agencies require them from contractors to ensure public projects stay on track. The agreement must follow Indonesia's Civil Code requirements for valid contracts, including having clear terms, lawful purposes, and proper signatures.

Use a Commitment Agreement when you need to secure specific promises or performance guarantees in Indonesian business dealings. This document proves especially valuable for government tenders, joint ventures, and major commercial partnerships where one party must demonstrate their dedication to deliver certain results or meet key milestones.

The agreement becomes essential during high-stakes projects requiring clear accountability, like infrastructure development, technology implementations, or investment arrangements. It helps protect both parties by clearly outlining obligations and consequences, particularly in regulated sectors where Indonesian law demands formal documentation of commitments. Many organizations pair it with performance bonds or bank guarantees for added security.

• Basic Commitment Agreement: Outlines fundamental promises between parties, commonly used in standard business transactions and partnerships
• Performance-Based Agreement: Focuses on specific deliverables, timelines, and measurable outcomes, popular in government contracts
• Investment Commitment Agreement: Details funding obligations, profit-sharing arrangements, and development milestones for investment projects
• Service Level Commitment: Specifies quality standards, response times, and operational requirements for service providers
• Regulatory Compliance Agreement: Addresses specific Indonesian regulatory requirements, often used in regulated industries like banking or mining

• Business Owners: Sign Commitment Agreements to formalize partnerships, secure investments, or guarantee project deliverables
• Government Agencies: Require these agreements from contractors and vendors to ensure public project compliance and delivery
• Legal Counsel: Draft and review agreements to protect client interests and ensure compliance with Indonesian law
• Corporate Directors: Execute agreements on behalf of companies for major business transactions or joint ventures
• Project Managers: Monitor and enforce commitments, tracking milestones and deliverables against agreement terms

• Party Details: Gather complete legal names, addresses, and authority documentation for all involved parties
• Scope Definition: List specific commitments, deliverables, timelines, and performance metrics clearly
• Legal Requirements: Check Indonesian regulatory requirements for your industry and transaction type
• Payment Terms: Detail financial obligations, payment schedules, and any penalties for non-compliance
• Documentation: Collect supporting documents like licenses, permits, or corporate approvals
• Template Selection: Use our platform to generate a legally-sound agreement that includes all mandatory elements

• Party Identification: Full legal names, addresses, and authorized representatives of all parties
• Commitment Details: Clear description of obligations, deliverables, and performance standards
• Timeline Section: Specific dates for key milestones, completion, and review periods
• Financial Terms: Payment amounts, schedules, and consequences for default
• Governing Law: Explicit reference to Indonesian law and jurisdiction
• Dispute Resolution: Agreed methods for handling disagreements under Indonesian regulations
• Signature Block: Space for authorized signatures, company seals, and witness signatures

A Commitment Agreement differs significantly from an Accountability Agreement in several key aspects, though both documents deal with responsibilities and obligations under Indonesian law. Understanding these differences helps you choose the right tool for your specific situation.

• Primary Purpose: Commitment Agreements focus on specific future actions or deliverables, while Accountability Agreements establish ongoing oversight and reporting structures
• Time Frame: Commitment Agreements typically have defined end dates tied to specific milestones, whereas Accountability Agreements often operate continuously
• Enforcement Mechanism: Commitment Agreements include direct remedies for breach of specific promises, while Accountability Agreements emphasize performance monitoring and improvement processes
• Scope of Control: Commitment Agreements target particular outcomes or actions, but Accountability Agreements cover broader operational responsibilities and organizational behavior