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Joint Purchase Agreement for Indonesia

Joint Purchase Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the framework for two or more parties to combine their purchasing power and jointly procure goods or services. The agreement details the governance structure, cost-sharing mechanisms, operational procedures, and decision-making processes for joint purchasing activities. It ensures compliance with Indonesian competition laws while maximizing the benefits of collective buying power, including better pricing, standardized quality, and improved supplier relationships.

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What is a Joint Purchase Agreement?

This Joint Purchase Agreement template is designed for use under Indonesian law when two or more organizations wish to collaborate on procurement activities to achieve economies of scale and operational efficiencies. The document is particularly valuable in scenarios where parties seek to leverage collective buying power, standardize procurement processes, or optimize supply chain operations. It includes essential provisions for governance, cost allocation, decision-making procedures, and risk management, while ensuring compliance with Indonesian competition laws and regulations. The agreement is structured to accommodate various industries and can be customized based on specific procurement needs, supplier relationships, and operational requirements of the participating organizations.

What sections should be included in a Joint Purchase Agreement?

1. Parties: Identifies and provides full details of all parties entering into the joint purchase agreement

2. Background: Sets out the context and purpose of the joint purchase arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Cooperation: Outlines the specific areas and products/services covered by the joint purchase arrangement

5. Purchase Committee: Establishes the governance structure for joint purchasing decisions

6. Purchase Procedures: Details the processes for identifying, selecting, and engaging with suppliers

7. Cost Allocation: Specifies how costs will be shared between parties

8. Payment Terms: Establishes payment procedures, timing, and methods

9. Confidentiality: Protects confidential information shared during the joint purchasing process

10. Liability and Indemnification: Defines the parties' responsibilities and obligations regarding potential losses or damages

11. Term and Termination: Specifies the duration of the agreement and conditions for termination

12. Governing Law: Confirms Indonesian law as governing law and specifies jurisdiction

13. Dispute Resolution: Outlines procedures for resolving disagreements between parties

14. General Provisions: Includes standard boilerplate clauses such as notices, amendments, and assignment

What sections are optional to include in a Joint Purchase Agreement?

1. Non-Competition: Required when parties need to agree not to compete on certain matters outside the joint purchasing arrangement

2. Intellectual Property Rights: Needed when joint purchasing involves products with significant IP components or when parties share proprietary information

3. Insurance Requirements: Include when specific insurance coverage is necessary for the joint purchasing activities

4. Force Majeure: Optional but recommended when parties want specific provisions for handling unforeseen circumstances

5. Anti-Corruption Compliance: Required when dealing with government entities or in high-risk sectors

6. Environmental Compliance: Needed when purchasing involves environmentally sensitive products or services

7. Local Content Requirements: Include when purchases must comply with Indonesian local content regulations

What schedules should be included in a Joint Purchase Agreement?

1. Schedule 1 - Product/Service Specifications: Detailed specifications of products or services to be jointly purchased

2. Schedule 2 - Pricing Framework: Framework for determining prices and cost-sharing formulas

3. Schedule 3 - Approved Suppliers List: List of pre-approved suppliers and their qualifications

4. Schedule 4 - Purchase Committee Rules: Detailed procedures for Purchase Committee operations

5. Schedule 5 - Quality Standards: Specific quality requirements and standards for purchases

6. Appendix A - Contact Details: Key contact information for all parties and authorized representatives

7. Appendix B - Standard Forms: Templates for purchase orders, supplier evaluations, and other routine documents

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

Purchase Agreement

Cost

Free to use
Relevant legal definitions














































Clauses












































Relevant Industries

Manufacturing

Construction

Retail

Healthcare

Mining

Energy

Telecommunications

Hospitality

Transportation

Technology

Agriculture

Industrial Products

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Risk Management

Compliance

Commercial

Vendor Management

Strategic Sourcing

Business Development

Relevant Roles

Chief Procurement Officer

Procurement Manager

Supply Chain Director

Commercial Director

Chief Financial Officer

Legal Counsel

Contract Manager

Operations Director

Purchasing Manager

Vendor Relations Manager

Risk Manager

Compliance Officer

Business Development Manager

Strategic Sourcing 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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