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Commercial Contract for Indonesia

Commercial Contract Template for Indonesia

A Commercial Contract governed by Indonesian law is a legally binding agreement that establishes and regulates business relationships between parties operating in or with Indonesia. This document follows the principles of the Indonesian Civil Code (KUHPerdata) and relevant commercial regulations, incorporating necessary compliance elements for Indonesian jurisdiction. It details the terms and conditions of business arrangements, including scope of work, payment terms, obligations, warranties, and dispute resolution mechanisms, while ensuring adherence to Indonesian legal requirements such as language provisions, governing law clauses, and specific regulatory compliance matters.

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What is a Commercial Contract?

The Commercial Contract template is designed for business transactions in Indonesia, serving as a comprehensive framework for commercial relationships between parties operating under Indonesian jurisdiction. This document is essential when establishing formal business arrangements such as supply agreements, service contracts, distribution agreements, or general commercial partnerships. It incorporates key requirements from Indonesian law, including provisions from the Civil Code (KUHPerdata), Trade Law, and relevant commercial regulations. The Commercial Contract is structured to address both domestic and international business relationships, featuring mandatory Indonesian law compliance elements while maintaining international best practices in commercial contracting. It's particularly relevant for businesses engaging in cross-border transactions, requiring careful consideration of Indonesian foreign investment regulations, currency laws, and sector-specific requirements.

What sections should be included in a Commercial Contract?

1. Parties: Identification of contracting parties including their legal status, registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of parties' business relationship

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

4. Scope of Agreement: Detailed description of the commercial arrangement, goods/services to be provided

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Payment Terms: Price, payment schedule, invoicing requirements, and currency specifications

7. Rights and Obligations: Detailed responsibilities and rights of each party

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

9. Confidentiality: Protection of confidential information and trade secrets

10. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

11. Termination: Conditions and process for ending the agreement

12. Governing Law: Confirmation of Indonesian law as governing law

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and arbitration details

14. Notices: Method and addresses for formal communications

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Commercial Contract?

1. Intellectual Property Rights: Required when the agreement involves IP transfer, licensing, or protection

2. Compliance with Laws: Detailed section needed when specific regulatory compliance is crucial

3. Insurance: Required when specific insurance coverage needs to be maintained

4. Performance Guarantees: Include when specific performance standards or service levels are required

5. Anti-Corruption: Required for high-value contracts or government-related transactions

6. Data Protection: Include when personal data processing is involved

7. Export Control: Required for international trade or technology transfer

8. Change Control: Include for long-term contracts where scope changes are likely

9. Environmental Compliance: Required for contracts involving environmental impacts

What schedules should be included in a Commercial Contract?

1. Schedule 1 - Scope of Work: Detailed technical specifications or service descriptions

2. Schedule 2 - Pricing and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Key Personnel: List of key personnel and their roles

5. Schedule 5 - Required Insurance: Details of insurance requirements and coverage levels

6. Schedule 6 - Compliance Requirements: Specific regulatory or compliance requirements

7. Appendix A - Form of Invoice: Template for invoices

8. Appendix B - Change Request Form: Template for requesting contract changes

9. Appendix C - Contact Details: Detailed contact information for key representatives

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions















































Clauses









































Relevant Industries

Manufacturing

Technology

Retail

Agriculture

Mining

Construction

Financial Services

Healthcare

Telecommunications

Transportation and Logistics

Energy

Consumer Goods

Professional Services

E-commerce

Infrastructure

Relevant Teams

Legal

Finance

Commercial

Operations

Procurement

Sales

Compliance

Risk Management

Business Development

Supply Chain

Project Management

Corporate Affairs

Strategy

International Trade

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Commercial Director

Chief Financial Officer

Operations Manager

Procurement Manager

Sales Director

Compliance Officer

Risk Manager

General Manager

Country Manager

Supply Chain Manager

Project Manager

Chief Executive Officer

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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