Asset Management Contract Template for Indonesia

The Asset Management Contract serves as the primary legal framework for investment management relationships in Indonesia, establishing the terms under which a licensed asset manager provides professional investment services to clients. This document is essential for compliance with Indonesian financial services regulations, particularly OJK requirements and the Capital Markets Law. It is used when clients (either institutional or individual) delegate investment authority to a professional asset manager, requiring detailed documentation of investment strategies, risk parameters, fees, and service levels. The contract must incorporate specific Indonesian regulatory requirements including mandatory risk disclosures, consumer protection provisions, and anti-money laundering compliance measures. It's particularly important for establishing clear fiduciary responsibilities and operational parameters while ensuring alignment with local regulatory frameworks.

1. Parties: Identification of the Asset Manager and the Client, including registration details and licensing information

2. Background: Context of the agreement and general purpose of the asset management relationship

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Appointment and Authority: Formal appointment of the asset manager and scope of delegated authority

5. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any investment restrictions

6. Risk Disclosures: Mandatory risk warnings and client acknowledgments as required by OJK regulations

7. Services and Obligations: Detailed description of services to be provided and obligations of the asset manager

8. Client's Obligations: Client's responsibilities, including information provision and compliance with regulations

9. Fees and Expenses: Management fees, performance fees, and other charges, including calculation methods

10. Reporting and Valuations: Reporting obligations, frequency, content, and valuation methodologies

11. Representations and Warranties: Standard and regulatory-required representations from both parties

12. Confidentiality: Confidentiality obligations and permitted disclosures

13. Compliance with Laws: Obligations to comply with relevant laws and regulations, including AML requirements

14. Liability and Indemnification: Extent of asset manager's liability and mutual indemnification provisions

15. Term and Termination: Duration of agreement and grounds for termination

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

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