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Price Agreement for Indonesia

Price Agreement Template for Indonesia

This document establishes a formal pricing arrangement between parties under Indonesian law, setting forth detailed terms and conditions for product or service pricing, including initial price points, adjustment mechanisms, and volume-based considerations. It complies with Indonesian commercial regulations, particularly the Civil Code (KUH Perdata) and relevant trade laws, while providing a framework for long-term price stability and transparency in commercial relationships. The agreement includes essential provisions for price modifications, payment terms, and dispute resolution mechanisms, all structured to align with Indonesian legal requirements and business practices.

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What is a Price Agreement?

A Price Agreement is essential for businesses operating in Indonesia that need to establish clear, legally-binding pricing arrangements with their commercial partners. This document type is particularly relevant when parties require a structured framework for long-term pricing relationships, especially in scenarios involving regular transactions or ongoing supply arrangements. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata), trade regulations, and consumer protection laws. It typically includes comprehensive pricing mechanisms, adjustment formulas, volume considerations, and payment terms, while accounting for local business practices and regulatory requirements. The document serves as a crucial tool for risk management and commercial certainty in Indonesian business operations.

What sections should be included in a Price Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: Details of products/services covered under the pricing agreement

5. Pricing Terms: Agreed prices, pricing structure, and calculation methodologies

6. Price Adjustment Mechanism: Procedures and conditions for price modifications during the agreement term

7. Payment Terms: Payment schedule, method, currency, and related conditions

8. Duration and Renewal: Term of the agreement and renewal provisions

9. Volume Commitments: Minimum purchase obligations or volume-based pricing tiers if applicable

10. Quality Standards: Required quality levels and specifications

11. Compliance: Obligations to comply with relevant laws and regulations

12. Termination: Conditions and process for terminating the agreement

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Process for resolving disputes between parties

What sections are optional to include in a Price Agreement?

1. Force Majeure: Provisions for unforeseen circumstances affecting performance - include if there are specific market volatility concerns

2. Exclusivity: Exclusive supply or purchase obligations - include if parties agree to exclusive arrangements

3. Marketing and Promotion: Terms for joint marketing activities - include if relevant to the commercial relationship

4. Intellectual Property: IP rights and usage - include if branded products or proprietary information is involved

5. Confidentiality: Protection of sensitive information - include if significant proprietary information is shared

6. Insurance: Insurance requirements - include if specific risk coverage is needed

7. Environmental Compliance: Environmental standards and obligations - include for environmentally sensitive products/services

8. Anti-Corruption: Anti-bribery and corruption provisions - include for high-value or government-related contracts

What schedules should be included in a Price Agreement?

1. Price List: Detailed list of products/services with corresponding prices

2. Price Calculation Formula: Detailed formulas for calculating prices, including variables and methodologies

3. Product Specifications: Technical specifications of products/services covered

4. Service Levels: Detailed service level requirements and metrics

5. Volume Discount Structure: Detailed breakdown of volume-based discounts and thresholds

6. Key Performance Indicators: Metrics for measuring performance under the agreement

7. Contact Details: List of key contacts for both parties

8. Price Review Process: Detailed procedures for periodic price reviews

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

Agreement Contract

Cost

Free to use
Relevant legal definitions


































Clauses



































Relevant Industries

Manufacturing

Retail

Consumer Goods

Industrial Products

Technology

Telecommunications

Energy

Mining

Agriculture

Construction

Healthcare

Pharmaceuticals

Logistics

Transportation

Food and Beverage

Automotive

Relevant Teams

Procurement

Legal

Finance

Commercial

Sales

Supply Chain

Operations

Risk Management

Business Development

Vendor Management

Contract Administration

Relevant Roles

Procurement Manager

Commercial Director

Supply Chain Manager

Chief Financial Officer

Contracts Manager

Sales Director

Purchasing Manager

Legal Counsel

Business Development Manager

Operations Manager

Category Manager

Vendor Manager

Commercial Manager

Finance Manager

Risk 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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