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A Consultancy Agreement sets out the terms when a consultant provides professional services to a client. In Indonesia, these contracts spell out key details like project scope, fees, timelines, and confidentiality requirements under the Civil Code (KUH Perdata) and relevant business regulations.

The agreement protects both parties by clearly defining deliverables, payment terms, and intellectual property rights. It differs from employment contracts because consultants work independently, often serving multiple clients while maintaining their own business entity - a structure particularly important under Indonesian tax and business licensing rules.

Use a Consultancy Agreement when bringing in external expertise for specific projects or specialized advice in Indonesia. This applies when hiring management consultants, IT specialists, financial advisors, or other professionals who maintain their independence while delivering services to your organization.

The agreement becomes essential before starting any consulting engagement that involves sensitive information, significant budgets, or complex deliverables. Indonesian business law requires clear documentation of independent contractor relationships, making this agreement crucial for tax compliance, intellectual property protection, and establishing proper business relationships outside regular employment structures.

• Simple Consulting Contract: Basic template for straightforward, short-term projects with clear deliverables
• Business Consulting Contract: Comprehensive agreement for management and strategic advisory services
• Consultant Retainer Agreement: For ongoing advisory relationships with regular monthly fees
• Financial Consultant Contract: Specialized for financial advisory services with regulatory compliance provisions
• Contract For Consulting Services: Detailed agreement for complex projects requiring multiple deliverables and milestones

• Business Owners and Companies: Act as clients seeking specialized expertise, responsible for defining project scope and payment terms
• Professional Consultants: Independent experts or consulting firms providing services under Indonesian business licensing requirements
• Legal Teams: Draft and review Consultancy Agreements to ensure compliance with Indonesian law and protect client interests
• Project Managers: Oversee deliverables and timelines outlined in the agreement, coordinating between consultants and internal teams
• Finance Departments: Handle payment schedules, tax considerations, and financial reporting requirements under Indonesian regulations

• Basic Details: Gather complete business information for both consultant and client, including tax numbers and business licenses
• Project Scope: Define specific deliverables, timelines, and measurable outcomes in clear, actionable terms
• Payment Terms: Outline fee structure, payment schedule, and any additional expenses or reimbursements
• Legal Requirements: Check Indonesian consulting regulations and tax obligations for proper documentation
• Confidentiality Needs: Identify sensitive information requiring protection and non-disclosure terms
• Document Generation: Use our platform to create a legally-sound agreement that includes all mandatory elements under Indonesian law

• Parties and Purpose: Full legal names, business details, and clear statement of consulting relationship
• Service Description: Detailed scope of work, deliverables, and performance standards
• Duration and Timeline: Start date, end date, and key milestone dates
• Compensation Terms: Fee structure, payment schedule, and expense policies
• Intellectual Property: Ownership rights of work products and pre-existing materials
• Confidentiality: Protection of business secrets under Indonesian law
• Termination Rights: Conditions for ending the agreement and notice periods
• Dispute Resolution: Choice of Indonesian law and preferred dispute settlement method

A Consultancy Agreement differs significantly from an Advisory Agreement in several key aspects under Indonesian law. While both involve professional guidance, their structure and obligations vary considerably.

• Scope and Duration: Consultancy Agreements typically cover specific projects with clear deliverables and end dates, while Advisory Agreements often involve ongoing strategic guidance without concrete deliverables
• Payment Structure: Consultants usually charge project-based or hourly fees, whereas advisors commonly receive retainer fees or equity compensation
• Legal Relationship: Consultants maintain greater independence and often serve multiple clients simultaneously, while advisors may have fiduciary duties and closer ties to the organization
• Deliverables: Consultancy Agreements require specific, measurable outcomes, but Advisory Agreements focus more on general guidance and recommendations