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Dispute Settlement Agreement for Indonesia

Dispute Settlement Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes the resolution of a dispute between two or more parties. The agreement details the terms and conditions of the settlement, including financial arrangements, mutual releases, and specific obligations of each party. It incorporates relevant provisions from Indonesian civil law and alternative dispute resolution regulations, ensuring compliance with local legal requirements while providing a binding framework for dispute resolution. The document serves as a definitive record of the settlement terms and typically includes provisions for confidentiality, payment terms, and mechanisms for ensuring compliance.

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What is a Dispute Settlement Agreement?

The Dispute Settlement Agreement is a crucial legal instrument used in Indonesia when parties wish to formally resolve and document the settlement of their disputes without proceeding to or continuing with litigation. It is particularly relevant in commercial disputes where parties seek a mutually acceptable resolution while maintaining business relationships. The agreement must comply with Indonesian Civil Code requirements and relevant regulations, including Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. This document typically includes detailed settlement terms, payment arrangements, mutual releases, and confidentiality provisions, making it essential for both private and public sector disputes. It's commonly used in situations ranging from commercial contract disputes to employment matters, and can be particularly valuable in cross-border disputes where Indonesian law applies.

What sections should be included in a Dispute Settlement Agreement?

1. Parties: Identification and details of all parties involved in the dispute and settlement

2. Background: Description of the dispute, including reference to any existing proceedings or claims

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

4. Settlement Terms: Detailed description of the agreed settlement, including any actions to be taken by each party

5. Payment Terms: Specific details of any financial settlement, including amounts, payment schedule, and payment method

6. Mutual Release: Comprehensive release of claims by all parties related to the dispute

7. Confidentiality: Obligations regarding confidentiality of the settlement terms and dispute details

8. Tax Implications: Statement on responsibility for any tax consequences arising from the settlement

9. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for any future disputes

10. Entire Agreement: Confirmation that this agreement represents the entire understanding between the parties

11. Execution: Signing provisions and execution requirements

What sections are optional to include in a Dispute Settlement Agreement?

1. Non-Disparagement: Mutual agreements not to make negative statements about other parties - useful in high-profile or contentious disputes

2. Ongoing Business Relationship: Terms governing future business interactions - relevant when parties wish to continue commercial relationships

3. Third Party Rights: Provisions regarding the rights of any third parties affected by the settlement

4. Insurance and Indemnification: Provisions regarding insurance claims and ongoing indemnification obligations

5. Dispute Resolution for Future Disputes: Specific procedures for resolving any future disputes about the settlement agreement

6. Partial Invalidity: Provisions addressing the scenario where parts of the agreement are found to be invalid

7. Corporate Authority: Specific provisions confirming corporate authority to enter into settlement - relevant for corporate entities

What schedules should be included in a Dispute Settlement Agreement?

1. Schedule A - Settlement Payment Details: Detailed breakdown of settlement amounts and payment schedule

2. Schedule B - Release Documentation: Forms and documents evidencing the mutual release of claims

3. Schedule C - Original Dispute Documentation: Key documents relating to the original dispute

4. Schedule D - Action Items: List of specific actions to be taken by each party with deadlines

5. Schedule E - Related Proceedings: List of any legal proceedings to be discontinued

6. Appendix 1 - Corporate Authorizations: Copies of corporate authorizations and board resolutions

7. Appendix 2 - Supporting Evidence: Key evidence or documents referenced in the settlement terms

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

Construction

Financial Services

Technology

Real Estate

Energy and Resources

Retail and Consumer

Infrastructure

Healthcare

Transportation and Logistics

Telecommunications

Agriculture

Relevant Teams

Legal

Finance

Compliance

Risk Management

Executive Leadership

Corporate Affairs

Treasury

Operations

Commercial

Corporate Secretariat

Relevant Roles

Chief Legal Officer

Legal Director

General Counsel

Corporate Secretary

Chief Financial Officer

Risk Manager

Compliance Officer

Managing Director

Chief Executive Officer

Commercial Director

Dispute Resolution Manager

Senior Legal Counsel

Finance Director

Business Unit Head

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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