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Service Provider Agreement for Indonesia

Service Provider Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which a service provider will deliver specified services to a client. The document incorporates essential elements required by Indonesian regulations, including mandatory bilingual provisions as per Law No. 24 of 2009, data protection requirements, and local business practice considerations. It covers key aspects such as service scope, performance standards, payment terms, intellectual property rights, and dispute resolution mechanisms, while ensuring compliance with Indonesian civil code and relevant sector-specific regulations.

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What is a Service Provider Agreement?

The Service Provider Agreement is a vital commercial contract used in Indonesian business operations to formalize service delivery arrangements between parties. It is particularly relevant when engaging external service providers, consultants, or specialized vendors for various business functions. The agreement must comply with Indonesian law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata), Law No. 24 of 2009 regarding language requirements, and sector-specific regulations. This document is essential for protecting both parties' interests, clearly defining service expectations, establishing payment terms, and ensuring regulatory compliance. It's commonly used across various industries and can be adapted for both domestic and international service providers operating in Indonesia, while addressing specific requirements such as data protection, intellectual property rights, and local business practices.

What sections should be included in a Service Provider Agreement?

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

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 Services: Detailed description of services to be provided, including deliverables and performance standards

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and tax considerations

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

8. Performance Standards: Quality standards, KPIs, and service level requirements

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP

10. Confidentiality: Protection and handling of confidential information

11. Data Protection: Compliance with Indonesian data protection laws and data handling procedures

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Force Majeure: Events constituting force majeure and their consequences

14. Termination: Grounds for termination and post-termination obligations

15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Service Provider Agreement?

1. Insurance: Insurance requirements when services involve significant risks or regulatory requirements

2. Compliance with Anti-Corruption Laws: Required for high-value contracts or government-related services

3. Service Provider Personnel: Include when specific personnel qualifications or vetting is required

4. Equipment and Materials: Necessary when physical equipment or materials are provided as part of services

5. Business Continuity: Required for critical services or long-term arrangements

6. Environmental Compliance: Include for services with environmental impact

7. Security Requirements: Necessary for services involving sensitive information or access to facilities

8. Transition Services: Include when complex service transition is required at start or end of contract

9. Subcontracting: Include when subcontracting may be required or needs to be restricted

10. Import/Export Compliance: Required for services involving international elements

What schedules should be included in a Service Provider Agreement?

1. Schedule 1 - Service Description: Detailed technical specifications and scope of services

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement criteria

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

4. Schedule 4 - Required Personnel: Key personnel requirements and qualifications

5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation

6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Schedule 7 - Data Processing Agreement: Detailed data protection and processing requirements

8. Schedule 8 - Service Locations: Approved locations for service delivery

9. Appendix A - Contact Details: Key contact information for both parties

10. Appendix B - Required Forms: Standard forms for service requests, reports, or other documentation

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

Service Contract

Cost

Free to use
Relevant legal definitions













































Clauses












































Relevant Industries

Information Technology

Professional Services

Consulting

Manufacturing

Financial Services

Healthcare

Energy

Telecommunications

Education

Construction

Logistics

Retail

Mining

Agriculture

Tourism

Relevant Teams

Legal

Procurement

Operations

Finance

Compliance

Project Management

Vendor Management

Commercial

Risk Management

Human Resources

Information Technology

Supply Chain

Business Development

Administration

Relevant Roles

Legal Counsel

Procurement Manager

Contract Manager

Business Development Manager

Operations Director

Chief Financial Officer

Compliance Officer

Project Manager

Vendor Management Specialist

Commercial Director

Risk Manager

Human Resources Director

IT Director

Supply Chain Manager

General 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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