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Business Agreement Contract for Indonesia

Business Agreement Contract Template for Indonesia

A comprehensive business agreement contract governed by Indonesian law, designed to establish and regulate commercial relationships between business entities operating in Indonesia. This document adheres to Indonesian Civil Code requirements and relevant business regulations, including Law No. 40 of 2007 on Limited Liability Companies and Law No. 25 of 2007 on Investment. The agreement must be executed in both Indonesian and English languages, with the Indonesian version prevailing in case of discrepancy. It includes detailed provisions for business operations, rights and obligations, compliance requirements, and dispute resolution mechanisms specific to the Indonesian legal context.

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What is a Business Agreement Contract?

The Business Agreement Contract serves as a fundamental legal instrument for establishing and managing business relationships in Indonesia. It is particularly relevant for both domestic and international companies seeking to formalize their commercial arrangements under Indonesian law. This document type is essential when establishing long-term business partnerships, service agreements, or commercial collaborations within Indonesia's jurisdiction. The agreement must comply with various Indonesian regulations, including the Civil Code (KUHPerdata), Company Law (Law No. 40 of 2007), and Investment Law (Law No. 25 of 2007). It requires careful consideration of local business practices, regulatory requirements, and mandatory language provisions. The document typically includes comprehensive terms covering operational aspects, compliance obligations, risk allocation, and dispute resolution mechanisms tailored to the Indonesian legal framework.

What sections should be included in a Business Agreement Contract?

1. Parties: Identification and details of all parties entering into the agreement, including their legal status and registration details

2. Background: Context and purpose of the agreement, including the business relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: Detailed description of the business relationship and activities covered by the agreement

5. Rights and Obligations: Specific responsibilities and rights of each party under the agreement

6. Term and Termination: Duration of the agreement and conditions for termination

7. Financial Provisions: Payment terms, pricing, invoicing, and other financial arrangements

8. Representations and Warranties: Statements of fact and promises made by each party

9. Confidentiality: Provisions regarding the protection and handling of confidential information

10. Intellectual Property: Rights and obligations regarding IP owned by or licensed to either party

11. Compliance with Laws: Commitment to comply with Indonesian laws and regulations

12. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

13. Force Majeure: Provisions for handling circumstances beyond parties' control

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

15. Execution: Signature blocks and formal closing of the agreement

What sections are optional to include in a Business Agreement Contract?

1. Insurance: Required when the business activities involve significant risks or regulatory requirements for insurance

2. Environmental Compliance: Necessary for agreements involving manufacturing, natural resources, or environmental impacts

3. Export Control: Required when the business involves international trade or technology transfer

4. Anti-Corruption Compliance: Detailed provisions when dealing with government entities or high-risk sectors

5. Data Protection: Required when the business involves handling personal or sensitive data

6. Local Content Requirements: Necessary for sectors subject to Indonesian local content regulations

7. Change Control: Required for long-term agreements or those involving complex deliverables

8. Service Levels: Necessary when the agreement involves ongoing service provision with performance metrics

What schedules should be included in a Business Agreement Contract?

1. Schedule 1 - Scope of Work: Detailed description of services or products to be provided

2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of pricing, payment schedules, and financial terms

3. Schedule 3 - Key Personnel: List of key personnel responsible for contract implementation

4. Schedule 4 - Service Levels: Detailed performance metrics and service level requirements

5. Schedule 5 - Technical Specifications: Technical requirements and specifications for products or services

6. Appendix A - Required Permits and Licenses: List of regulatory approvals required for the business activities

7. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements applicable to the agreement

8. Appendix C - Form of Reports: Templates for required reporting under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Manufacturing

Technology

Trade and Distribution

Professional Services

Construction

Energy

Mining

Agriculture

Retail

Financial Services

Logistics

Healthcare

Education

Telecommunications

Consumer Goods

Relevant Teams

Legal

Commercial

Business Development

Operations

Compliance

Corporate Affairs

Risk Management

Procurement

Finance

Strategy

International Business

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Contract Manager

Business Development Manager

Commercial Director

Chief Operating Officer

Compliance Officer

Corporate Secretary

General Manager

Country Manager

Legal Director

Risk Manager

Procurement Manager

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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