A Letter Of Intent To Hire Contractor is commonly used in Indonesian business practice as a formal step between initial negotiations and final contract execution. This document is particularly important in the Indonesian context, where formal documentation of business intentions is culturally and professionally expected. It should be drafted in compliance with Indonesian law, particularly the Civil Code (KUHPer) and Law No. 13 of 2003 on Manpower. The document typically includes preliminary terms, proposed scope, timelines, and next steps while clearly stating its non-binding nature (except for specific provisions like confidentiality). It's especially useful when dealing with high-value contracts, complex projects, or situations requiring formal documentation of intent before proceeding with detailed contract negotiations. The document must be in Indonesian language or bilingual format to ensure legal compliance and should include appropriate company stamps and signatures as per local business custom.
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1. Letterhead and Date: Company letterhead, date, and reference number as per Indonesian business practice
2. Recipient Details: Full name and address of the contractor
3. Subject Line: Clear indication that this is a Letter of Intent for contractor engagement
4. Opening Statement: Formal introduction and reference to any previous discussions or meetings
5. Project Overview: Brief description of the project or work for which the contractor will be engaged
6. Intended Engagement Terms: High-level outline of proposed engagement terms including approximate timeline and scope
7. Next Steps: Clear outline of the process moving forward, including timeline for formal contract
8. Non-Binding Statement: Clear statement that this is not a formal contract, except for any specifically noted binding provisions
9. Validity Period: Timeframe during which this letter of intent remains valid
10. Closing: Formal closing, signature block, and company stamp (if applicable)
1. Confidentiality Statement: Include when sensitive information will be shared during the negotiation phase
2. Exclusivity Period: Include when requiring the contractor not to engage with other clients for the same project during negotiations
3. Preliminary Commercial Terms: Include when both parties have already discussed and agreed to basic commercial terms
4. Government Approval Reference: Include when the project requires specific government approvals or licenses
5. Foreign Worker Provisions: Include when the contractor is a foreign individual or entity requiring work permits
1. Preliminary Scope of Work: High-level outline of the intended works or services
2. Key Dates and Milestones: Preliminary timeline for both contract finalization and project execution
3. Required Qualifications: List of necessary certifications, licenses, or qualifications required for the contractor
4. Supporting Documents: List of contractor's corporate documents, certifications, or portfolios received during preliminary discussions
Relevant legal definitions
Clauses
Relevant Industries
Construction
Information Technology
Engineering
Professional Services
Manufacturing
Energy
Mining
Infrastructure Development
Telecommunications
Consulting
Real Estate Development
Industrial Projects
Oil and Gas
Relevant Teams
Legal
Human Resources
Procurement
Operations
Project Management Office
Facilities Management
Contract Administration
Business Development
Technical Operations
Relevant Roles
Project Manager
Procurement Manager
Human Resources Director
Legal Counsel
Operations Director
Contract Administrator
Chief Operating Officer
Business Development Manager
Construction Manager
Technical Director
Hiring Manager
Resource Manager
Facilities Manager
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