A Product Supply Contract is a fundamental commercial agreement used to establish and regulate the ongoing supply of products between businesses in Indonesia. This document is essential for companies engaged in regular supply arrangements, whether domestic or international, and must comply with Indonesian law, particularly the Civil Code and Trade Law No. 7 of 2014. The contract typically details product specifications, ordering mechanisms, delivery terms, quality standards, and pricing structures, while ensuring compliance with local regulatory requirements. It's particularly important in Indonesia's growing economy where supply chain relationships often involve both local and international parties, requiring careful consideration of cross-border trading regulations and local business practices. The document serves as a crucial tool for risk management and establishing clear commercial expectations between parties.
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1. Parties: Identification of supplier and buyer with complete legal details
2. Background: Context of the supply arrangement and business relationship
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Supply Obligations: Core obligations of supplier including product specifications, quantity, and quality requirements
5. Ordering and Delivery: Process for placing orders, delivery terms, and timeframes
6. Price and Payment: Pricing structure, payment terms, and invoicing procedures
7. Quality Control: Quality standards, inspection rights, and acceptance procedures
8. Title and Risk: Transfer of ownership and risk allocation
9. Warranties and Representations: Standard warranties regarding products and capacity to contract
10. Term and Termination: Contract duration and termination provisions
11. Confidentiality: Protection of confidential information and trade secrets
12. Force Majeure: Events excusing performance and consequences
13. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Minimum Purchase Commitments: Used when buyer commits to minimum purchase quantities
2. Exclusivity: When either party has exclusive rights or obligations
3. Insurance: Specific insurance requirements for high-value or high-risk products
4. Intellectual Property: For products involving IP rights or licensed technology
5. Compliance with Regulations: For regulated products (e.g., food, pharmaceuticals, dangerous goods)
6. Storage and Warehousing: When specific storage requirements apply
7. Performance Metrics: When specific KPIs or service levels are required
8. Export/Import Requirements: For international supply arrangements
9. Product Training: When supplier must provide training on product use
10. Environmental Compliance: For products with environmental impact or regulations
1. Product Specifications: Detailed technical specifications of products
2. Pricing Schedule: Detailed pricing structure, including any volume discounts
3. Delivery Locations: List of approved delivery points and contact details
4. Quality Standards: Detailed quality requirements and testing procedures
5. Service Level Agreement: Specific performance metrics and measurement criteria
6. Form of Purchase Order: Standard form for placing orders
7. Technical Requirements: Detailed technical requirements for product handling
8. Compliance Certificates: Required regulatory or quality certifications
9. Key Personnel: List of key contacts and responsible personnel
10. Approved Subcontractors: List of approved subcontractors or manufacturers if applicable
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Consumer Goods
Industrial Products
Technology
Food and Beverage
Pharmaceuticals
Automotive
Electronics
Textiles
Agriculture
Construction Materials
Chemical Products
Energy
Mining
Relevant Teams
Legal
Procurement
Supply Chain
Operations
Commercial
Finance
Compliance
Quality Assurance
Logistics
Sales
Business Development
Risk Management
Relevant Roles
Procurement Manager
Supply Chain Director
Commercial Director
Legal Counsel
Contract Manager
Operations Manager
Purchasing Officer
Quality Assurance Manager
Logistics Manager
Business Development Manager
Compliance Officer
Finance Director
General Manager
Sales Director
Chief Operating Officer
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