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Standard Contractor Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a company and an independent contractor. This document outlines the terms and conditions of the contractor engagement, including scope of services, payment terms, intellectual property rights, confidentiality obligations, and other essential provisions compliant with Indonesian regulations, particularly the Civil Code and Law No. 13 of 2003 on Manpower. The agreement ensures clear differentiation between contractor and employee status while protecting both parties' interests and maintaining compliance with local labor and tax laws.

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What is a Standard Contractor Agreement?

The Standard Contractor Agreement serves as a fundamental legal instrument for establishing professional relationships between companies and independent contractors in Indonesia. This document is essential when engaging external professionals or service providers on a non-employment basis, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Civil Code. The agreement comprehensively covers critical aspects such as service scope, compensation, intellectual property rights, confidentiality, and dispute resolution while maintaining the distinct contractor status separate from employment relationships. It is specifically designed to protect both parties' interests while adhering to local regulatory requirements, tax obligations, and business practices in the Indonesian context.

What sections should be included in a Standard Contractor Agreement?

1. Parties: Identification of the contracting company and the contractor, including their full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of why the parties are entering into this contractor relationship

3. Definitions: Key terms used throughout the agreement and their specific meanings

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

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Compensation and Payment Terms: Fee structure, payment schedule, expenses, and invoicing requirements

7. Independent Contractor Status: Clear statement of contractor's independent status and not an employee, complying with Indonesian labor laws

8. Contractor's Obligations: Key responsibilities, quality standards, and performance requirements

9. Company's Obligations: Company's responsibilities including provision of necessary information and resources

10. Intellectual Property Rights: Ownership and transfer of work product, existing IP protection

11. Confidentiality: Protection of confidential information and trade secrets

12. Representations and Warranties: Statements of fact and promises made by both parties

13. Liability and Indemnification: Allocation of risks and responsibilities for damages

14. Dispute Resolution: Process for resolving disagreements, including jurisdiction under Indonesian law

15. General Provisions: Standard clauses including notices, amendments, assignment, and severability

What sections are optional to include in a Standard Contractor Agreement?

1. Non-Compete: Restrictions on competitive activities, used when contractor has access to sensitive information or clients

2. Equipment and Resources: Details of any company-provided equipment or resources, used when company provides specific tools

3. Insurance: Insurance requirements for contractor, used in high-risk services or when required by company policy

4. Compliance with Specific Regulations: Additional regulatory compliance requirements, used in regulated industries

5. Data Protection: Specific data handling requirements, used when personal or sensitive data is processed

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or critical service agreements

7. Subcontracting: Terms for engaging subcontractors, used when subcontracting might be needed

8. Performance Metrics: Specific KPIs and performance standards, used in results-based contracts

9. Training Requirements: Mandatory training or certification requirements, used in specialized services

What schedules should be included in a Standard Contractor Agreement?

1. Schedule A - Services Description: Detailed scope of work, deliverables, and technical specifications

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

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

4. Schedule D - Company Policies: Relevant company policies contractor must comply with

5. Appendix 1 - Required Qualifications: List of required certifications, licenses, or qualifications

6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Appendix 3 - Equipment List: Inventory of any company-provided equipment or resources

8. Appendix 4 - Contact Details: Key contact persons and escalation matrix

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

Cost

Free to use
Relevant legal definitions





































Clauses




































Relevant Industries

Technology

Construction

Professional Services

Manufacturing

Creative Industries

Education

Healthcare

Consulting

Energy

Real Estate

Financial Services

Telecommunications

Mining

Agriculture

Retail

Logistics

Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Compliance

Commercial

Administration

Risk Management

Business Development

Relevant Roles

Legal Counsel

HR Manager

Procurement Manager

Project Manager

Operations Director

Finance Manager

Compliance Officer

Contract Administrator

Business Development Manager

Department Head

General Manager

CEO

Managing Director

Risk Manager

Commercial Director

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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