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Cost Sharing Agreement for Indonesia

Cost Sharing Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the framework for sharing costs between multiple parties. The document outlines the specific costs to be shared, allocation methodologies, payment terms, and administrative procedures. It includes provisions compliant with Indonesian Civil Code requirements, currency regulations, and relevant tax laws. The agreement typically contains detailed schedules for cost categories, calculation methods, and reporting requirements, ensuring transparent and efficient cost sharing arrangements while maintaining compliance with local regulatory requirements.

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What is a Cost Sharing Agreement?

Cost Sharing Agreements are essential legal instruments in Indonesian business practice, particularly useful when multiple parties need to share expenses for joint operations, facilities, or projects. These agreements must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), tax regulations, and currency laws. The document is commonly used in situations involving shared facilities, joint research projects, group company arrangements, or collaborative ventures where resources and costs need to be allocated among participants. The Cost Sharing Agreement details the specific costs to be shared, allocation methods, payment procedures, record-keeping requirements, and audit rights, while ensuring compliance with local regulatory requirements including mandatory use of Bahasa Indonesia in contracts and Rupiah in transactions where applicable.

What sections should be included in a Cost Sharing Agreement?

1. Parties: Identification of all parties to the agreement, including their legal status and registered addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the cost sharing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including specific cost categories and allocation methods

4. Scope of Cost Sharing: Clear delineation of which costs are subject to sharing and which are excluded

5. Cost Allocation Method: Detailed explanation of how costs will be calculated and allocated between parties

6. Payment Terms: Timing and method of payments, including currency, payment schedule, and settlement procedures

7. Record Keeping and Audit Rights: Requirements for maintaining cost records and rights of parties to audit shared costs

8. Reporting Requirements: Obligations regarding regular financial reporting and cost reconciliation

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Dispute Resolution: Process for resolving disagreements about cost allocation or other aspects of the agreement

11. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

12. General Provisions: Standard contractual provisions including notices, amendments, and entire agreement clause

What sections are optional to include in a Cost Sharing Agreement?

1. Tax Provisions: Detailed treatment of tax implications and responsibilities, required when parties have different tax statuses or cross-border elements

2. Intellectual Property Rights: Provisions regarding IP ownership and licensing, needed when shared costs include technology development or IP-related expenses

3. Confidentiality: Detailed confidentiality obligations, recommended when sharing sensitive cost information

4. Force Majeure: Provisions for handling cost sharing during unexpected events, important for long-term agreements

5. Currency Exchange Provisions: Required when parties operate in different currencies or international payments are involved

6. Insurance Requirements: Needed when shared activities require specific insurance coverage

7. Change Control Procedure: Process for modifying cost allocation methods or shared activities, useful for long-term or complex arrangements

What schedules should be included in a Cost Sharing Agreement?

1. Schedule A - Cost Categories: Detailed list and description of all cost categories subject to sharing

2. Schedule B - Allocation Methodology: Detailed formulas and examples of how costs will be calculated and allocated

3. Schedule C - Payment Procedures: Specific procedures for invoicing, payment processing, and reconciliation

4. Schedule D - Reporting Templates: Standard formats for regular cost reporting and reconciliation statements

5. Schedule E - Initial Cost Estimates: Projected costs and allocations for the first period of the agreement

6. Appendix 1 - Authorized Representatives: List of personnel authorized to approve costs and changes

7. Appendix 2 - Excluded Costs: Detailed list of costs specifically excluded from the sharing arrangement

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

Real Estate

Energy

Mining

Healthcare

Research & Development

Infrastructure

Telecommunications

Shared Services

Education

Biotechnology

Financial Services

Logistics

Relevant Teams

Legal

Finance

Operations

Commercial

Compliance

Tax

Treasury

Project Management

Facilities Management

Risk Management

Business Development

Contract Administration

Joint Venture Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Commercial Director

Operations Manager

Project Manager

Financial Controller

Compliance Officer

Tax Manager

Treasury Manager

Joint Venture Manager

Facilities Manager

Business Development Director

Contract Administrator

Risk Manager

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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