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Third Party Contractor Agreement for Indonesia

Third Party 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 ensures compliance with Indonesian labor and business regulations while clearly distinguishing the contractor relationship from employment. It covers essential elements including scope of services, payment terms, intellectual property rights, confidentiality, and dispute resolution mechanisms, all within the framework of Indonesian civil law and relevant regulations such as the Indonesian Civil Code and Law No. 13 of 2003 on Manpower.

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Third Party Contractor Agreement

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What is a Third Party Contractor Agreement?

The Third Party Contractor Agreement is essential for businesses operating in Indonesia who engage external service providers or independent contractors. This document is crucial for establishing clear boundaries between employment and contractor relationships, which is particularly important under Indonesian labor law. It provides a legal framework for engaging contractors while ensuring compliance with local regulations, including the Indonesian Civil Code, Law No. 13 of 2003 on Manpower, and relevant tax regulations. The agreement is designed to protect both parties' interests by clearly defining the scope of services, payment terms, confidentiality obligations, and intellectual property rights, while maintaining the contractor's independence. It's particularly relevant in today's business environment where companies increasingly rely on specialized external expertise for various projects and services.

What sections should be included in a Third Party Contractor Agreement?

1. Parties: Identification of the contracting parties, including full legal names, addresses, and company registration details as required under Indonesian law

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology where relevant

4. Appointment and Scope of Services: Clear definition of contractor's appointment and detailed description of services to be provided

5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

6. Contractor's Obligations: Key responsibilities, deliverables, quality standards, and compliance requirements

7. Company's Obligations: Company's responsibilities, including provision of necessary information and access

8. Fees and Payment Terms: Compensation structure, payment schedule, invoicing requirements, and tax considerations

9. Independent Contractor Status: Clear statement of independent contractor relationship and distinction from employment

10. Intellectual Property Rights: Ownership and usage rights of pre-existing and created intellectual property

11. Confidentiality: Protection of confidential information and trade secrets

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Insurance: Required insurance coverage and minimum limits

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions

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

What sections are optional to include in a Third Party Contractor Agreement?

1. Performance Metrics: Specific KPIs and performance measurement criteria, used when service quality needs objective measurement

2. Compliance with Specific Regulations: Additional regulatory compliance requirements for specialized industries or services

3. Equipment and Materials: Provisions regarding supply and maintenance of equipment, used when contractor needs specific tools or materials

4. Security Requirements: Specific security protocols and requirements, important for contractors handling sensitive data or accessing secure facilities

5. Training Requirements: Mandatory training or certification requirements, relevant for specialized services

6. Subcontracting: Terms governing the use of subcontractors, when subcontracting might be necessary

7. Force Majeure: Specific provisions for unforeseen circumstances, particularly relevant in long-term or high-value contracts

8. Non-Competition: Restrictions on competitive activities, used when contractor has access to sensitive business information

9. Data Protection: Specific data handling and privacy requirements, essential when personal data processing is involved

What schedules should be included in a Third Party Contractor Agreement?

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

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

3. Schedule C - Service Levels: Specific performance standards and metrics

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

5. Schedule E - Required Insurance: Specific insurance requirements and coverage limits

6. Appendix 1 - Contact Details: Key contact persons and communication protocols

7. Appendix 2 - Required Documentation: List of permits, licenses, and certificates required from contractor

8. Appendix 3 - Equipment List: Inventory of any company-provided equipment or contractor-supplied tools

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

Information Technology

Construction

Professional Services

Manufacturing

Mining

Oil and Gas

Healthcare

Education

Telecommunications

Transportation and Logistics

Creative Industries

Financial Services

Consulting

Engineering

Agriculture

Real Estate

Relevant Teams

Legal

Procurement

Human Resources

Operations

Finance

Compliance

Contract Administration

Business Development

Risk Management

Vendor Management

Relevant Roles

Legal Counsel

Procurement Manager

Human Resources Director

Project Manager

Operations Manager

Finance Director

Compliance Officer

Contract Administrator

Business Development Manager

Department Head

Chief Operating Officer

General Manager

Risk Manager

Vendor Management Specialist

Technical 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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