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Professional Fee Agreement for Indonesia

Professional Fee Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for professional services rendered. This document outlines the scope of professional services, fee structures, payment terms, and obligations of both parties while ensuring compliance with Indonesian regulations, including tax laws and currency requirements. It incorporates essential provisions for intellectual property rights, confidentiality, and dispute resolution mechanisms, structured to meet Indonesian legal requirements including Law No. 24 of 2009 regarding language requirements and relevant tax regulations.

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What is a Professional Fee Agreement?

The Professional Fee Agreement serves as a crucial legal instrument in Indonesian business practices for engaging professional services. It is essential when organizations seek to formally engage independent professionals, consultants, or professional service firms while clearly distinguishing these relationships from employment arrangements under Indonesian labor law. This document is particularly relevant in contexts where specialized expertise is required on a fee-for-service basis, ensuring compliance with Indonesian tax regulations, currency laws, and professional service requirements. The agreement typically covers comprehensive service specifications, payment structures, intellectual property rights, and confidentiality provisions, while incorporating necessary safeguards for both service providers and clients. It is structured to comply with Indonesian Civil Code requirements and relevant regulations governing professional services, including mandatory language requirements under Law No. 24 of 2009.

What sections should be included in a Professional Fee Agreement?

1. Parties: Identification of the service provider and client, including their legal details and authorized representatives

2. Background: Context of the agreement, brief description of the parties' business relationship and intention to enter into a professional service arrangement

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Scope of Services: Detailed description of the professional services to be provided

5. Term and Timeline: Duration of the agreement and any key milestone dates

6. Professional Fees: Fee structure, payment terms, currency, and payment schedule

7. Rights and Obligations: Detailed responsibilities and obligations of both parties

8. Intellectual Property Rights: Ownership and rights to work products created during service provision

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Taxation: Tax obligations and withholding requirements as per Indonesian law

11. Termination: Conditions and procedures for ending the agreement

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

13. Notices: Communication procedures and contact details for official notices

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Professional Fee Agreement?

1. Non-Competition: Restrictions on competitive activities, used when the professional has access to sensitive business information

2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or complex service arrangements

3. Insurance: Professional liability insurance requirements, typically included for high-risk or regulated professional services

4. Assignment: Rights to transfer or delegate services, important when subcontracting might be needed

5. Performance Standards: Specific quality metrics or standards, used for complex professional services

6. Compliance with Laws: Specific regulatory compliance requirements, essential for regulated professions

7. Personnel: Requirements for specific individuals to perform services, used when particular expertise is crucial

What schedules should be included in a Professional Fee Agreement?

1. Schedule A - Detailed Scope of Services: Comprehensive description of services, deliverables, and specifications

2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and calculation methods

3. Schedule C - Service Levels: Performance metrics, quality standards, and measurement criteria

4. Schedule D - Key Personnel: List of key professional staff assigned to provide the services

5. Schedule E - Required Documents: List of licenses, certificates, or other documents required for service provision

6. Appendix 1 - Form of Invoice: Standard invoice format meeting Indonesian tax and regulatory requirements

7. Appendix 2 - Progress Report Template: Standard format for reporting service progress and deliverables

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

Fee Agreement

Cost

Free to use
Relevant legal definitions




































Clauses








































Relevant Industries

Professional Services

Technology

Financial Services

Healthcare

Education

Legal Services

Management Consulting

Engineering

Architecture

Creative Industries

Information Technology

Research and Development

Business Advisory

Training and Development

Environmental Services

Relevant Teams

Legal

Finance

Procurement

Human Resources

Operations

Administration

Compliance

Risk Management

Project Management

Business Development

Contracts Administration

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Head of Procurement

Finance Director

HR Director

Project Manager

Procurement Manager

Contracts Manager

Business Development Manager

Operations Director

Department Head

Professional Consultant

Independent Contractor

Managing Partner

Chief Operating Officer

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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