Executive Director Employment Contract Template for Indonesia

The Executive Director Employment Contract is a crucial document used when appointing executive-level directors in Indonesian companies. It serves as both an employment agreement and a governance document, ensuring compliance with Indonesian corporate and employment laws, particularly Law No. 40 of 2007 and Law No. 13 of 2003. This contract is essential for establishing clear terms of engagement, protecting both the company's and director's interests, and ensuring proper corporate governance. It includes comprehensive provisions on responsibilities, remuneration, performance expectations, and termination conditions, while incorporating necessary regulatory compliance elements specific to Indonesian business operations. The document is particularly important for companies seeking to formalize director appointments, whether for local or expatriate executives, and requires approval from relevant corporate bodies including the Board of Commissioners and shareholders.

1. Parties: Identification of the company and the executive director, including their respective addresses and registration details

2. Background: Context of the appointment, including any relevant corporate approvals and shareholders' resolutions

3. Definitions: Key terms used throughout the agreement, including Company, Board, Confidential Information, etc.

4. Appointment and Term: Details of the director's position, effective date, and duration of appointment

5. Duties and Responsibilities: Comprehensive outline of the director's roles, duties, and obligations under Indonesian company law and company requirements

6. Time Commitment: Expected working hours and availability requirements

7. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits including participation in BPJS programs

8. Leave Entitlements: Annual leave, sick leave, and other permitted absences

9. Confidentiality: Protection of company confidential information and trade secrets

10. Intellectual Property: Ownership and protection of IP created during employment

11. Non-Competition and Non-Solicitation: Restrictions during and after employment

12. Termination: Grounds and procedures for termination, notice periods, and consequences

13. Post-Termination Obligations: Continuing obligations after employment ends

14. Company Policies: Compliance with company policies and procedures

15. Governing Law and Jurisdiction: Application of Indonesian law and dispute resolution procedures