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A Teaming agreement creates a formal partnership between two or more companies working together on a specific project or tender bid in Indonesia. It spells out how the partners will combine their resources, expertise, and responsibilities while maintaining their separate legal identities.

Under Indonesian contract law, these agreements help businesses tackle larger projects they couldn't handle alone, especially in sectors like construction and government procurement. They detail crucial elements like profit sharing, risk allocation, and operational leadership - while protecting each company's confidential information and establishing clear dispute resolution procedures aligned with local regulations.

Use a Teaming agreement when your company needs to join forces with another business to pursue major projects in Indonesia, especially government tenders or large-scale construction work that exceeds your individual capacity. This becomes crucial when bidding on contracts that require multiple specialties or resources that no single company possesses.

The agreement proves particularly valuable in regulated sectors like infrastructure, energy, and telecommunications, where Indonesian authorities often expect clear documentation of partnership arrangements. It's essential to have this in place before submitting joint bids, sharing sensitive information, or committing resources to collaborative ventures.

• Exclusive Teaming: Restricts partners from pursuing the same project with other companies, common in Indonesian government tenders
• Non-Exclusive Teaming: Allows partners to pursue similar projects with others, often used in commercial construction
• Prime-Sub Teaming: One company leads as prime contractor while others serve as subcontractors, typical in defense projects
• Joint Venture Teaming: More comprehensive partnership sharing both risks and profits, popular in infrastructure development
• Project-Specific Teaming: Limited to a single project with clear scope and timeline, common in technology implementations

• Partnering Companies: The main organizations signing the Teaming agreement, usually including both local Indonesian firms and international partners
• Corporate Legal Teams: Draft and review agreement terms to ensure compliance with Indonesian partnership laws and regulations
• Project Managers: Implement and monitor the operational aspects outlined in the agreement
• Government Agencies: Review Teaming agreements when involved in public tenders or regulated sectors
• External Legal Counsel: Provide specialized expertise for complex cross-border partnerships or industry-specific requirements

• Partner Details: Gather complete company information, business licenses, and authorized signatories from all participating entities
• Project Scope: Define specific contributions, roles, and responsibilities for each partner company
• Resource Allocation: Document how personnel, equipment, and financial resources will be shared
• Risk Distribution: Outline liability sharing, insurance requirements, and dispute resolution mechanisms under Indonesian law
• Compliance Check: Review sector-specific regulations and tender requirements that may affect partnership terms
• Timeline Planning: Set clear project milestones, partnership duration, and exit procedures

• Party Identification: Full legal names, addresses, and registration numbers of all participating companies
• Scope Definition: Detailed description of project objectives, deliverables, and each partner's contributions
• Revenue Sharing: Clear terms for profit distribution and payment mechanisms
• Confidentiality Terms: Protection of shared business information and intellectual property rights
• Dispute Resolution: Specific procedures aligned with Indonesian arbitration laws
• Term and Termination: Partnership duration, extension options, and exit procedures
• Governing Law: Explicit statement of Indonesian law application and jurisdiction

A Teaming agreement differs significantly from a Business Acquisition Agreement in both purpose and structure. While both involve multiple companies working together, they serve fundamentally different business objectives under Indonesian law.

• Ownership Structure: Teaming agreements maintain separate company identities for a specific project, while Business Acquisition Agreements transfer ownership and merge operations permanently
• Duration: Teaming agreements typically last for a specific project or tender period, whereas acquisitions represent permanent business combinations
• Resource Integration: Teaming involves sharing specific resources temporarily, while acquisitions combine all assets and operations
• Regulatory Requirements: Teaming agreements face lighter regulatory scrutiny compared to acquisitions, which require extensive government approvals under Indonesian merger control laws