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Software Development Contract for Indonesia

Software Development Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for software development services. This contract defines the relationship between a software developer/development company and their client, outlining project scope, deliverables, intellectual property rights, payment terms, and development methodology. It incorporates specific requirements under Indonesian electronic information and technology laws, including the ITE Law and recent data protection regulations, while ensuring compliance with local contract law principles under the Indonesian Civil Code.

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Software Development Contract

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What is a Software Development Contract?

The Software Development Contract serves as a crucial legal framework for technology projects in Indonesia, establishing clear terms between software developers and their clients. This document is essential when engaging external developers or development companies to create custom software solutions, applications, or systems. It encompasses key aspects required under Indonesian law, including electronic transaction regulations, data protection requirements, and intellectual property provisions. The contract should be used whenever a business commissions bespoke software development, whether for internal use or commercial purposes. It includes comprehensive provisions for project management, quality assurance, acceptance testing, and ongoing maintenance, while ensuring compliance with Indonesian technological and commercial regulations.

What sections should be included in a Software Development Contract?

1. Parties: Identification of contracting parties including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the project objectives

3. Definitions and Interpretation: Definitions of technical terms, project-specific terminology, and contract interpretation rules

4. Scope of Services: Detailed description of software development services to be provided

5. Development Process and Methodology: Software development methodology, project phases, and delivery approach

6. Project Timeline and Milestones: Key dates, delivery schedules, and project milestones

7. Acceptance Testing: Testing procedures, acceptance criteria, and defect resolution process

8. Payment Terms: Fee structure, payment schedule, and invoicing procedures

9. Intellectual Property Rights: Ownership and licensing of developed software and pre-existing IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Representations: Quality guarantees, performance warranties, and legal compliance assurances

12. Limitation of Liability: Liability caps and exclusions in accordance with Indonesian law

13. Term and Termination: Contract duration, renewal terms, and termination conditions

14. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a Software Development Contract?

1. Third-Party Software Integration: Used when the project involves integration with third-party software or APIs

2. Data Protection and Privacy: Required when personal data processing is involved, ensuring compliance with Indonesian data protection laws

3. Source Code Escrow: Optional arrangement for source code safekeeping with a third party

4. Security Requirements: Specific security standards and requirements for high-security applications

5. Change Management: Procedures for handling change requests and scope modifications

6. Service Level Agreement: Include when ongoing maintenance or support is part of the contract

7. Training and Documentation: When knowledge transfer and system documentation are required deliverables

8. Disaster Recovery: For critical systems requiring business continuity planning

What schedules should be included in a Software Development Contract?

1. Technical Specifications: Detailed technical requirements, system architecture, and functionality specifications

2. Project Timeline: Detailed project schedule with all phases, milestones, and deliverables

3. Acceptance Criteria: Specific criteria and test cases for software acceptance

4. Price Schedule: Detailed breakdown of costs, payment milestones, and pricing structure

5. Service Levels: Performance metrics, response times, and service level requirements

6. Personnel: Key personnel, roles, and responsibilities from both parties

7. Security Standards: Specific security requirements and compliance standards

8. Change Request Template: Standard format for submitting and processing change requests

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

Financial Services

Healthcare

E-commerce

Manufacturing

Telecommunications

Education

Government

Retail

Insurance

Transportation

Logistics

Professional Services

Relevant Teams

Legal

Information Technology

Procurement

Software Development

Project Management

Operations

Risk and Compliance

Finance

Technical Architecture

Quality Assurance

Business Development

Executive Leadership

Relevant Roles

Chief Technology Officer

IT Director

Project Manager

Software Development Manager

Legal Counsel

Procurement Manager

Contract Manager

Technical Lead

Chief Information Officer

Business Development Manager

Operations Director

Chief Executive Officer

Software Engineer

Systems Architect

Vendor 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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