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Framework Contract In Procurement for Indonesia

Framework Contract In Procurement Template for Indonesia

A Framework Contract in Procurement under Indonesian law establishes a long-term agreement between a buyer and supplier(s) for the recurring purchase of goods or services. The document sets out the terms, conditions, and procedures for future procurement activities while ensuring compliance with Indonesian procurement regulations, particularly Presidential Regulation No. 16 of 2018 and related procurement laws. It includes provisions for pricing mechanisms, quality standards, performance monitoring, and call-off procedures, creating a flexible yet structured approach to ongoing procurement needs.

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What is a Framework Contract In Procurement?

The Framework Contract in Procurement is essential for organizations requiring a structured approach to recurring procurement needs under Indonesian law. This document type is particularly valuable when a buyer needs to establish a long-term relationship with supplier(s) for regular purchases without committing to fixed quantities upfront. It streamlines the procurement process by pre-agreeing terms, conditions, and pricing mechanisms, while ensuring compliance with Indonesian procurement regulations, including Presidential Regulation No. 16 of 2018 and related legislation. The framework contract includes essential elements such as call-off procedures, performance metrics, quality standards, and compliance requirements, making it suitable for both government entities and private organizations engaging in significant procurement activities. The document's flexibility allows for variations in quantity, delivery schedules, and specific requirements while maintaining consistent terms and standards throughout the agreement period.

What sections should be included in a Framework Contract In Procurement?

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the framework agreement, procurement objectives, and relationship between parties

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

4. Scope of Framework: Overview of goods/services covered, exclusivity arrangements, and framework operation

5. Duration and Extension: Term of the framework agreement, including initial period and extension options

6. Call-off Procedures: Process for placing individual orders under the framework, including requirements and response times

7. Pricing and Payment Terms: Pricing mechanism, payment terms, price adjustment provisions, and invoicing requirements

8. Quality Standards: Required quality standards, specifications, and compliance requirements

9. Performance Monitoring: KPIs, performance review processes, and reporting requirements

10. Warranties and Representations: Standard warranties regarding capacity, authority, and quality of goods/services

11. Compliance and Anti-corruption: Compliance with Indonesian procurement laws and anti-corruption requirements

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification provisions

13. Termination: Grounds for termination, consequences, and ongoing obligations

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

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

What sections are optional to include in a Framework Contract In Procurement?

1. Intellectual Property Rights: Required when framework involves software, technology or creative works

2. Data Protection: Required when personal data processing is involved in the procurement

3. Import/Export Requirements: Required for international procurement involving cross-border movement of goods

4. Environmental Compliance: Required for procurement involving environmental considerations or hazardous materials

5. Local Content Requirements: Required when Indonesian local content rules apply to the procurement

6. Security Requirements: Required for procurement involving sensitive or confidential information

7. Business Continuity: Required for critical supply arrangements requiring disaster recovery planning

8. Training and Support: Required when supplier must provide training or ongoing support services

What schedules should be included in a Framework Contract In Procurement?

1. Schedule 1 - Specification of Goods/Services: Detailed technical specifications and requirements

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and cost breakdown

3. Schedule 3 - KPI and Service Levels: Detailed performance metrics and measurement criteria

4. Schedule 4 - Call-off Forms: Template forms for placing individual orders under the framework

5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable

6. Schedule 6 - Compliance Requirements: Detailed regulatory and compliance requirements

7. Schedule 7 - Implementation Timeline: Timeline for framework implementation and key milestones

8. Appendix A - Contact Details: Key contact information for both parties

9. Appendix B - Required Certificates: Copies of required certifications and permits

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 Agreement

Cost

Free to use
Relevant legal definitions


















































Clauses









































Relevant Industries

Manufacturing

Construction

Information Technology

Healthcare

Energy

Transportation

Telecommunications

Professional Services

Infrastructure

Education

Defense

Mining

Agriculture

Retail

Logistics

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Compliance

Risk Management

Commercial

Vendor Management

Project Management

Strategic Sourcing

Contract Administration

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Contract Manager

Purchasing Officer

Compliance Officer

Chief Financial Officer

Operations Director

Project Manager

Vendor Relations Manager

Category Manager

Commercial Director

Risk Manager

Sourcing Specialist

Business Development 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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