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Copacker Agreement

Copacker Agreement Template for Indonesia

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Key Requirements PROMPT example:

Copacker Agreement

"I need a Copacker Agreement for my Singapore-based beverage company to engage an Indonesian manufacturer to produce our energy drinks, with particular attention to halal certification requirements and export regulations, planning to commence production by March 2025."

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Document background
The Copacker Agreement is essential for businesses seeking to outsource their product manufacturing operations in Indonesia. This document is typically used when a brand owner wants to leverage a third-party manufacturer's expertise and facilities without investing in their own manufacturing infrastructure. The agreement needs to comply with Indonesian regulations, particularly Law No. 18 of 2012 on Food (for food products), Government Regulation No. 28 of 2004 on food safety, and relevant manufacturing permits. It addresses critical aspects such as production specifications, quality control, regulatory compliance, intellectual property protection, and risk allocation. The agreement is particularly important in Indonesia's growing manufacturing sector, where local content requirements and specific regulatory frameworks must be carefully considered.
Suggested Sections

1. Parties: Identification of the product owner/client and the copacker, including full legal names and addresses

2. Background: Context of the agreement, brief description of parties' businesses, and general purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of manufacturing, packaging, and related services to be provided by the copacker

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

6. Quality Control and Compliance: Quality standards, testing procedures, and regulatory compliance requirements

7. Production Requirements: Minimum/maximum production volumes, forecasting, and ordering procedures

8. Raw Materials and Packaging: Responsibilities for sourcing, storing, and managing materials

9. Pricing and Payment Terms: Manufacturing costs, payment schedules, and price adjustment mechanisms

10. Intellectual Property Rights: Protection of recipes, formulations, trademarks, and other IP

11. Confidentiality: Protection of trade secrets and proprietary information

12. Warranties and Representations: Quality guarantees, compliance warranties, and general representations

13. Liability and Indemnification: Risk allocation, insurance requirements, and indemnification obligations

14. Force Majeure: Provisions for handling unforeseen circumstances and disruptions

15. Governing Law and Dispute Resolution: Choice of law and mechanisms for resolving disputes

Optional Sections

1. Exclusivity: Used when the copacker is restricted from manufacturing similar products for competitors

2. Equipment Provisions: Include when specific equipment is provided by the product owner or requires special arrangements

3. Storage and Warehousing: Required when the copacker provides storage services beyond standard production

4. Distribution Services: Include if the copacker handles product distribution

5. Environmental Compliance: Detailed section needed for environmentally sensitive products or processes

6. Halal Certification: Required for products needing to comply with Islamic dietary laws

7. Technology Transfer: Include when proprietary manufacturing processes need to be taught to the copacker

8. Change Control: Detailed procedures for handling formula or process changes when critical to product

Suggested Schedules

1. Product Specifications: Detailed technical specifications for each product to be manufactured

2. Quality Standards and Testing Procedures: Specific quality control requirements and testing methodologies

3. Pricing Schedule: Detailed breakdown of costs, including volume-based pricing if applicable

4. Production Schedule: Agreed manufacturing timeframes and capacity commitments

5. Raw Material Specifications: Detailed requirements for ingredients and packaging materials

6. Approved Supplier List: List of approved suppliers for raw materials and packaging

7. Standard Operating Procedures: Manufacturing and packaging process requirements

8. Compliance Certificates: Required regulatory certifications and compliance documents

9. Insurance Requirements: Specific insurance types and coverage levels required

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 | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Batch
Best Industry Practice
Business Day
Confidential Information
Commencement Date
Contract Year
Customer Complaints
Defective Products
Delivery Point
Effective Date
Equipment
Facility
Force Majeure Event
Good Manufacturing Practice (GMP)
Halal Certification
Hazard Analysis Critical Control Point (HACCP)
Initial Term
Intellectual Property Rights
Manufacturing Process
Manufacturing Services
Manufacturing Specifications
Minimum Order Quantity
Notice
Packaging Materials
Packaging Specifications
Product
Product Owner
Product Recall
Product Specifications
Purchase Order
Quality Control Procedures
Quality Standards
Raw Materials
Raw Material Specifications
Regulatory Approvals
Renewal Term
Services
Service Fees
Standard Operating Procedures
Storage Requirements
Subcontractor
Term
Territory
Testing Requirements
Third Party
Trade Secrets
Trademarks
Unit Price
Working Hours
Clauses
Services
Term and Termination
Quality Control
Manufacturing Requirements
Raw Materials and Packaging
Product Specifications
Pricing and Payment
Forecasting and Orders
Delivery and Acceptance
Storage and Warehousing
Equipment Use and Maintenance
Intellectual Property Rights
Confidentiality
Non-Competition
Regulatory Compliance
Food Safety
Halal Compliance
Labor Standards
Environmental Compliance
Quality Assurance
Product Testing
Product Recall
Warranties
Indemnification
Insurance
Record Keeping
Audit Rights
Force Majeure
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Amendment
Entire Agreement
Severability
Waiver
Third Party Rights
Counterparts
Relevant Industries

Food & Beverage

Consumer Goods

Pharmaceuticals

Cosmetics

Personal Care

Nutraceuticals

Health Supplements

Pet Food

Household Products

Industrial Products

Relevant Teams

Legal

Operations

Supply Chain

Quality Assurance

Procurement

Regulatory Affairs

Manufacturing

Commercial

Research & Development

Food Safety

Compliance

Production

Relevant Roles

Supply Chain Director

Manufacturing Manager

Quality Assurance Manager

Procurement Manager

Operations Director

Legal Counsel

Regulatory Compliance Officer

Production Manager

Contract Manager

Chief Operations Officer

Business Development Manager

Commercial Director

Food Safety Officer

Quality Control Supervisor

Plant Manager

Industries
Law No. 18 of 2012 on Food: Indonesia's primary food law governing food safety, quality, nutrition, and labeling requirements for food manufacturing and processing
Government Regulation No. 28 of 2004: Regulations on food safety, quality, and nutrition, including specific requirements for food manufacturing facilities and processes
Law No. 3 of 1982 on Company Registration: Mandatory registration requirements for business entities operating in Indonesia
Law No. 13 of 2003 on Manpower: Labor regulations governing employment relationships, working conditions, and worker rights in manufacturing facilities
Law No. 28 of 2014 on Copyright: Protection of intellectual property rights, including trade secrets and proprietary formulations
Law No. 32 of 2009 on Environmental Protection and Management: Environmental standards and requirements for manufacturing operations
Law No. 25 of 2007 on Investment: Regulations governing foreign and domestic investment in Indonesian business operations
Law No. 8 of 1999 on Consumer Protection: Consumer protection requirements affecting product quality, safety, and liability
Law No. 7 of 2014 on Trade: General trading and commercial regulations affecting business operations and agreements
Indonesian Civil Code (KUHPerdata): Basic contract law principles governing commercial agreements and business relationships
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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