The Independent Contractor Agreement for IT Services is essential for businesses operating in Indonesia that engage external IT professionals or service providers. This document is specifically designed to comply with Indonesian legal requirements, including Law No. 13 of 2003 on Manpower and Law No. 11 of 2008 on Electronic Information and Transactions. It is commonly used when companies need specialized IT services but prefer to maintain a contractor relationship rather than an employment relationship. The agreement covers crucial aspects such as service scope, deliverables, payment terms, intellectual property rights, data protection, and confidentiality obligations. It's particularly relevant in Indonesia's rapidly growing digital economy, where companies increasingly rely on flexible IT service arrangements while ensuring compliance with local regulations and protecting their business interests.
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1. Parties: Identifies the contracting parties - the company/client and the independent contractor, including their full legal names, addresses, and registration details
2. Background: Sets out the context of the agreement, including the client's need for IT services and the contractor's expertise and qualifications
3. Definitions: Defines key terms used throughout the agreement, including technical IT terminology specific to the services
4. Scope of Services: Detailed description of the IT services to be provided, including specific deliverables and technical requirements
5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party
6. Compensation and Payment Terms: Fee structure, payment schedule, expenses, and applicable taxes
7. Independent Contractor Status: Clear statement of independent contractor relationship and not employment, including contractor's responsibilities for their own taxes and benefits
8. Intellectual Property Rights: Ownership and transfer of IP rights in deliverables, pre-existing IP, and third-party materials
9. Confidentiality: Protection of confidential information, trade secrets, and data security requirements
10. Performance Standards: Quality standards, acceptance criteria, and performance metrics for the IT services
11. Warranties and Representations: Contractor's warranties regarding service quality, compliance with laws, and professional standards
12. Limitation of Liability: Caps on liability and exclusions of certain types of damages
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions
14. General Provisions: Standard clauses including force majeure, notices, amendment process, and entire agreement
1. Data Protection and Privacy: Detailed provisions for handling personal data and compliance with Indonesian data protection laws - required when services involve processing personal data
2. Source Code Escrow: Provisions for source code protection and access - needed when custom software development is involved
3. Service Level Agreement (SLA): Specific performance metrics and penalties - required for ongoing IT services or maintenance contracts
4. Change Management: Process for handling changes to scope or requirements - useful for long-term or complex projects
5. Disaster Recovery: Procedures for handling system failures or data loss - important for critical IT systems
6. Insurance Requirements: Specific insurance coverage requirements - needed for high-value or high-risk services
7. Training and Knowledge Transfer: Requirements for training client staff - relevant when knowledge transfer is part of the scope
8. Non-Competition: Restrictions on working with competitors - optional based on business sensitivity
9. Subcontracting: Terms for allowing or prohibiting subcontracting - needed if subcontractors might be used
1. Schedule A - Scope of Services: Detailed technical specifications and requirements for the IT services
2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and rate cards
3. Schedule C - Service Levels: Detailed performance metrics, response times, and service level requirements
4. Schedule D - Project Timeline: Delivery schedule, milestones, and project phases
5. Schedule E - Technical Requirements: Specific technical standards, platforms, and compatibility requirements
6. Appendix 1 - Data Processing Requirements: Specific requirements for handling and processing data
7. Appendix 2 - Security Requirements: Detailed security protocols and requirements
8. Appendix 3 - Testing and Acceptance Criteria: Detailed acceptance testing procedures and criteria
9. Appendix 4 - Contact Details: Key personnel and escalation contacts for both parties
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software Development
Digital Services
E-commerce
Financial Technology
Telecommunications
Banking and Finance
Healthcare Technology
Education Technology
Manufacturing
Retail Technology
Consulting Services
Digital Marketing
Cloud Services
Relevant Teams
Legal
Information Technology
Procurement
Human Resources
Finance
Compliance
Operations
Project Management Office
Information Security
Risk Management
Relevant Roles
Chief Technology Officer
IT Director
Project Manager
Software Developer
Systems Administrator
Network Engineer
Database Administrator
UI/UX Designer
DevOps Engineer
IT Security Specialist
Legal Counsel
Procurement Manager
HR Director
Finance Director
Contract Administrator
IT Consultant
Business Analyst
Solutions Architect
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