The Long Term Partnering Agreement is a crucial document for businesses seeking to establish sustained collaborative relationships in Indonesia. It is particularly relevant in the context of Indonesia's growing economy and the government's emphasis on fostering long-term business partnerships, especially in strategic sectors. This agreement type is commonly used when parties intend to collaborate for extended periods (typically 5+ years) and need a robust framework for managing their relationship. The document addresses complex aspects of business partnerships including governance structures, risk allocation, profit sharing, and operational protocols, while ensuring compliance with Indonesian regulations such as the Investment Law (Law No. 25 of 2007) and relevant sector-specific requirements. It's particularly valuable for foreign investors partnering with Indonesian entities, as it helps navigate local regulatory requirements while establishing clear partnership parameters.
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1. Parties: Identification and details of all parties entering into the agreement
2. Background: Context of the partnership, including the parties' objectives and rationale for collaboration
3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement
4. Partnership Scope and Objectives: Detailed description of the partnership's scope, goals, and intended outcomes
5. Term and Extension: Duration of the partnership, including initial term and extension mechanisms
6. Partnership Governance: Management structure, decision-making processes, and reporting requirements
7. Financial Arrangements: Financial terms, profit sharing, cost allocation, and payment mechanisms
8. Operational Framework: Day-to-day operational procedures, responsibilities, and performance standards
9. Performance Metrics and KPIs: Specific performance indicators and measurement criteria
10. Representations and Warranties: Standard representations and warranties from each party
11. Compliance and Regulatory Matters: Obligations regarding legal compliance and regulatory requirements
12. Risk Allocation and Indemnities: Distribution of risks and indemnification obligations
13. Confidentiality: Protection of confidential information and trade secrets
14. Force Majeure: Provisions for handling events beyond parties' control
15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
16. Termination: Grounds and procedures for termination and post-termination obligations
1. Intellectual Property Rights: Used when the partnership involves creation, use, or sharing of IP
2. Data Protection and Privacy: Required when partnership involves processing personal or sensitive data
3. Environmental Compliance: Needed for partnerships with environmental impact considerations
4. Labor and Employment: Include when partnership involves shared employees or secondment
5. Insurance Requirements: Specific insurance obligations beyond standard coverage
6. Anti-Corruption Compliance: Detailed anti-corruption provisions for high-risk sectors or international partnerships
7. Competition Law Compliance: Required for partnerships that might impact market competition
8. Local Content Requirements: Needed when subject to Indonesian local content regulations
9. Step-In Rights: Used in critical service partnerships or infrastructure projects
1. Schedule 1 - Services Description: Detailed description of services or activities under the partnership
2. Schedule 2 - Financial Model: Detailed financial projections, pricing mechanisms, and payment terms
3. Schedule 3 - Governance Procedures: Detailed procedures for partnership management and decision-making
4. Schedule 4 - Performance Standards: Specific KPIs, service levels, and measurement methodologies
5. Schedule 5 - Required Insurance: Details of required insurance coverage and limits
6. Schedule 6 - Form of Reports: Templates and formats for required reporting
7. Schedule 7 - Key Personnel: List of key personnel and their roles
8. Schedule 8 - Compliance Requirements: Detailed regulatory and compliance requirements
9. Appendix A - Communication Protocol: Procedures for formal communications between parties
10. Appendix B - Dispute Resolution Procedures: Detailed procedures for dispute resolution
Relevant legal definitions
Clauses
Relevant Industries
Infrastructure Development
Manufacturing
Energy and Resources
Technology and Digital Services
Healthcare and Pharmaceuticals
Agriculture and Food Production
Transportation and Logistics
Financial Services
Telecommunications
Retail and Consumer Goods
Mining and Natural Resources
Education and Training
Construction and Real Estate
Relevant Teams
Legal
Business Development
Corporate Strategy
Finance
Operations
Compliance
Risk Management
Commercial
Corporate Affairs
Investment
Procurement
International Business
Relevant Roles
Chief Executive Officer
Managing Director
Chief Legal Officer
Head of Business Development
Partnership Director
Commercial Director
Legal Counsel
Chief Financial Officer
Operations Director
Compliance Officer
Strategic Planning Manager
Investment Manager
Contract Manager
Risk Management Officer
Business Development Manager
Corporate Secretary
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