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Revenue Sharing Contract for Indonesia

Revenue Sharing Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for sharing revenue between two or more parties. This document outlines the methodology for calculating revenue, payment terms, reporting requirements, and audit rights while ensuring compliance with Indonesian commercial law, tax regulations, and relevant industry-specific requirements. The agreement includes provisions for dispute resolution, confidentiality, and mandatory dual-language requirements as per Indonesian Law No. 24 of 2009, making it suitable for both domestic and international business arrangements within Indonesia's jurisdiction.

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What is a Revenue Sharing Contract?

The Revenue Sharing Contract serves as a crucial legal instrument for businesses operating in Indonesia who wish to establish formal arrangements for sharing revenue from joint business activities. This document type is particularly relevant in today's collaborative business environment, where parties often combine resources, capabilities, or assets to generate revenue. The agreement must comply with Indonesian civil law, investment regulations, and tax requirements, while also addressing specific industry regulations where applicable. A Revenue Sharing Contract typically includes detailed mechanisms for revenue calculation, payment procedures, reporting obligations, and audit rights, making it essential for businesses engaging in joint ventures, platform-based businesses, or collaborative commercial ventures within Indonesian jurisdiction. The document should be drafted in both Indonesian and English languages to comply with local regulations, with clear provisions regarding the prevailing language in case of discrepancies.

What sections should be included in a Revenue Sharing Contract?

1. Parties: Identification of all parties to the agreement, including their legal status and addresses

2. Background: Context of the agreement, business relationship, and purpose of the revenue sharing arrangement

3. Definitions and Interpretation: Definitions of key terms, including 'Revenue', 'Gross Revenue', 'Net Revenue', and interpretation rules

4. Revenue Sharing Structure: Core terms defining the revenue sharing percentages and calculation methodology

5. Calculation and Payment Terms: Detailed procedures for revenue calculation, payment timing, and payment methods

6. Reporting Requirements: Requirements for financial reporting, documentation, and revenue verification

7. Audit Rights: Provisions for auditing revenue calculations and related records

8. Tax Provisions: Treatment of taxes, including withholding obligations and tax responsibilities

9. Duration and Term: Period of the agreement, including commencement date and termination provisions

10. Representations and Warranties: Standard representations regarding authority, capacity, and compliance

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction details

13. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

14. Language: Specification of dual language requirements and prevailing language in case of conflicts

What sections are optional to include in a Revenue Sharing Contract?

1. Intellectual Property Rights: Required when the revenue sharing involves IP-based products or services

2. Non-Competition: Include when parties need to be restricted from competing activities

3. Force Majeure: Include for long-term arrangements to address unforeseen circumstances

4. Bank Account Details: Optional section for specifying designated accounts for payments

5. Marketing and Promotion: Include when parties have specific marketing responsibilities affecting revenue generation

6. Minimum Revenue Guarantees: Include when there are guaranteed minimum revenue requirements

7. Change of Control: Include for long-term agreements where ownership changes could affect the arrangement

8. Insurance Requirements: Include when specific insurance coverage is necessary for the revenue-generating activities

What schedules should be included in a Revenue Sharing Contract?

1. Revenue Calculation Methodology: Detailed explanation of revenue calculations, including formulas and examples

2. Payment Schedule: Specific payment dates, periods, and deadlines

3. Reporting Template: Standard format for regular revenue reports

4. Product or Service Description: Detailed description of products/services covered by the revenue sharing arrangement

5. Excluded Revenue Items: List of revenue streams excluded from the sharing arrangement

6. Key Performance Indicators: Metrics for measuring performance and revenue targets

7. Authorized Representatives: List of designated representatives for each party

8. Bank Account Details: Specific banking information for revenue transfers

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

Technology

Media and Entertainment

E-commerce

Real Estate

Manufacturing

Retail

Hospitality

Financial Services

Agriculture

Mining

Education

Healthcare

Software Development

Digital Services

Telecommunications

Relevant Teams

Legal

Finance

Business Development

Commercial

Operations

Compliance

Tax

Partnerships

Revenue Management

Account Management

Investment

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Legal Counsel

Business Development Manager

Finance Director

Commercial Director

Contract Manager

Partnership Manager

Revenue Manager

Compliance Officer

Tax Manager

Operations Director

Account Manager

Investment 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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