Cloud Agreement Template for Indonesia

A comprehensive legal agreement governing the provision and use of cloud computing services in Indonesia, complying with Indonesian law including Law No. 27 of 2022 on Personal Data Protection and Government Regulation No. 71 of 2019. The agreement covers essential aspects such as service delivery, data protection, security requirements, service levels, and compliance with local regulations. It addresses specific Indonesian requirements for data localization, cross-border data transfers, and electronic system operator registration, while establishing the rights and obligations of both the cloud service provider and the customer.

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What is a Cloud Agreement?

This Cloud Agreement template is designed for use in the Indonesian market, where cloud computing services are subject to specific regulatory requirements including data protection, electronic systems operation, and sector-specific regulations. The agreement is essential for organizations providing or procuring cloud services in Indonesia, addressing crucial aspects such as data sovereignty, security requirements, and compliance with Law No. 27 of 2022 on Personal Data Protection. It includes provisions for service levels, data handling, security measures, and dispute resolution under Indonesian jurisdiction. The document is particularly important given Indonesia's strict requirements for electronic system operators and data localization rules, making it suitable for both domestic and international cloud service providers operating in the Indonesian market.

What sections should be included in a Cloud Agreement?

1. Parties: Identification of the cloud service provider and customer, including their legal status and registered addresses

2. Background: Context of the agreement, nature of cloud services, and general intent of the parties

3. Definitions: Definitions of technical terms, service-specific terminology, and other key terms used in the agreement

4. Service Description: Detailed description of the cloud services, including type of service (IaaS/PaaS/SaaS), features, and specifications

5. Service Access and Usage Rights: Terms governing access to and use of the cloud services, including user accounts and access credentials

6. Data Protection and Privacy: Compliance with Indonesian data protection laws, data handling procedures, and privacy requirements

7. Security Requirements: Security measures, standards, and compliance requirements under Indonesian regulations

8. Service Levels: Service level commitments, performance metrics, and remedies for failure to meet SLAs

9. Fees and Payment: Pricing, payment terms, billing cycles, and related financial provisions

10. Term and Termination: Duration of agreement, renewal terms, and termination rights and procedures

11. Intellectual Property: IP rights, ownership of data, and licensing terms

12. Confidentiality: Protection of confidential information and trade secrets

13. Liability and Indemnification: Limitation of liability, indemnification obligations, and risk allocation

14. Force Majeure: Events excusing performance and related procedures

15. Governing Law and Dispute Resolution: Indonesian law as governing law and dispute resolution procedures

What sections are optional to include in a Cloud Agreement?

1. Data Localization Requirements: Required when services involve public sector data or specific regulated industries requiring data to be stored in Indonesia

2. Disaster Recovery: Optional detailed section for enterprise customers requiring specific disaster recovery commitments

3. Migration Services: Include when the provider offers data migration services to/from the cloud platform

4. Professional Services: Required when additional implementation, training, or consulting services are provided

5. Financial Services Compliance: Include when serving financial institutions to address Bank Indonesia regulations

6. Insurance Requirements: Optional section specifying required insurance coverage, particularly for enterprise customers

7. Anti-Corruption Compliance: Required for government contracts or when dealing with public sector entities

What schedules should be included in a Cloud Agreement?

1. Service Level Agreement (SLA): Detailed service levels, measurement methods, and service credits

2. Technical Specifications: Detailed technical specifications of the cloud services and infrastructure

3. Security Standards and Procedures: Detailed security requirements, protocols, and compliance standards

4. Data Processing Agreement: Detailed terms for personal data processing in compliance with Indonesian data protection law

5. Pricing Schedule: Detailed pricing, including usage tiers, additional services, and special rates

6. Support Services Description: Details of support levels, response times, and escalation procedures

7. Acceptable Use Policy: Rules and restrictions regarding use of the cloud services

8. Exit Plan: Procedures for service termination, data retrieval, and transition assistance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use

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