Costs Agreement Template for Indonesia

The Costs Agreement is a fundamental document used in Indonesian legal practice to formalize the relationship between legal service providers and their clients. It is required whenever a law firm or advocate undertakes to provide legal services to clients, whether corporate or individual. The agreement must comply with Indonesian law, particularly the Advocates Law (Law No. 18 of 2003) and related regulations governing legal practice. The document typically includes detailed provisions about scope of services, fee structures, payment terms, client obligations, and professional undertakings. A well-drafted Costs Agreement helps prevent misunderstandings about fees and services while providing a clear framework for the professional relationship. It serves as both a legal and practical tool for managing client expectations and ensuring transparent fee arrangements in accordance with Indonesian legal and professional requirements.

1. Parties: Identification of the law firm/advocate and the client, including their full legal names, addresses, and registration details

2. Background: Context of the engagement, including brief description of the client's requirements and the firm's capacity to provide the services

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Scope of Services: Detailed description of legal services to be provided, including any limitations or exclusions

5. Fees and Billing Arrangements: Structure of fees, billing rates, payment terms, and billing frequency

6. Costs and Disbursements: Details of additional costs, third-party expenses, and how they will be charged

7. Payment Terms: Timeline for payments, accepted payment methods, and consequences of late payment

8. Client Obligations: Client's responsibilities including providing information, documents, and instructions

9. Confidentiality: Obligations regarding confidential information and documents

10. Conflicts of Interest: Procedures for identifying and handling potential conflicts

11. Termination: Circumstances under which either party may terminate the agreement and the consequences

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction details

13. Execution: Signature blocks and execution requirements