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Company Contract Agreement for Indonesia

Company Contract Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes and regulates business relationships between companies operating within Indonesia's jurisdiction. This agreement incorporates key requirements under Indonesian corporate law, including Law No. 40 of 2007 on Limited Liability Companies and related regulations. It addresses essential aspects such as parties' obligations, financial arrangements, operational requirements, and compliance with local business practices, while ensuring adherence to mandatory language requirements under Law No. 24 of 2009, requiring documentation in Bahasa Indonesia.

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What is a Company Contract Agreement?

The Company Contract Agreement serves as a fundamental legal instrument for establishing formal business relationships between companies operating in Indonesia. This document is essential when companies seek to formalize their business arrangements, whether for service provision, collaboration, or other commercial purposes. It must comply with Indonesian law, particularly the Civil Code (KUHPerdata), Law No. 40 of 2007 on Limited Liability Companies, and Law No. 25 of 2007 on Investment. The agreement typically includes provisions for business operations, financial arrangements, regulatory compliance, and dispute resolution mechanisms. It requires careful consideration of local business practices and mandatory requirements, such as the need for dual-language documentation when involving foreign parties.

What sections should be included in a Company Contract Agreement?

1. Parties: Identification of all contracting parties, including full legal names, registration numbers, and registered addresses

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Agreement: Detailed description of the business relationship and obligations of each party

5. Term and Renewal: Duration of the agreement and conditions for renewal or extension

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

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

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

9. Confidentiality: Provisions regarding handling of confidential information and trade secrets

10. Intellectual Property: Ownership and usage rights of intellectual property

11. Termination: Circumstances and procedures for ending the agreement

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

13. General Provisions: Standard legal provisions including notices, amendments, and severability

14. Execution: Signature blocks and execution requirements

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

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

2. Anti-Corruption: Compliance with anti-corruption laws and ethical business practices

3. Data Protection: Provisions for handling personal data and compliance with privacy laws

4. Insurance: Requirements for insurance coverage and liability protection

5. Non-Competition: Restrictions on competitive activities

6. Assignment and Subcontracting: Rules regarding transfer of rights and obligations

7. Environmental Compliance: Environmental protection obligations and compliance requirements

8. Change of Control: Provisions dealing with changes in company ownership or control

What schedules should be included in a Company Contract Agreement?

1. Schedule 1 - Service Specifications: Detailed description of services or products covered by the agreement

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

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

4. Schedule 4 - Performance Metrics: Specific performance indicators and measurement criteria

5. Schedule 5 - Technical Requirements: Technical specifications and requirements

6. Appendix A - Required Licenses and Permits: List of necessary regulatory approvals and licenses

7. Appendix B - Company Policies: Relevant internal policies and procedures

8. Appendix C - Compliance Requirements: Specific regulatory and compliance obligations

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

Service Contract

Cost

Free to use
Relevant legal definitions













































Clauses









































Relevant Industries

Manufacturing

Technology

Financial Services

Agriculture

Mining and Resources

Retail and Consumer Goods

Infrastructure

Transportation and Logistics

Healthcare

Education

Energy

Telecommunications

Real Estate and Property

Professional Services

Relevant Teams

Legal

Compliance

Finance

Operations

Risk Management

Corporate Secretariat

Business Development

Commercial

Strategy

Executive Leadership

Procurement

Corporate Affairs

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Corporate Secretary

Legal Counsel

Contract Manager

Business Development Manager

Chief Financial Officer

Chief Operating Officer

Compliance Officer

Risk Manager

Commercial Director

Managing Director

Board Member

General Manager

Company 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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