Feedstock Supply Agreement Template for Indonesia

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Key Requirements PROMPT example:

Feedstock Supply Agreement

"I need a Feedstock Supply Agreement for my palm oil processing company in Jakarta, where we'll be the buyer receiving regular monthly deliveries of raw palm fruit from multiple small-scale suppliers in Sumatra, with the agreement starting from January 2025."

Document background
The Feedstock Supply Agreement is a critical commercial document used in Indonesian business operations where regular supply of raw materials or feedstock is essential for business continuity. It is particularly relevant in situations requiring consistent supply of specific materials under regulated conditions, such as manufacturing inputs, agricultural products, or industrial raw materials. The agreement must comply with Indonesian regulatory requirements, including the Civil Code (KUH Perdata), Trade Law (UU No. 7/2014), and relevant industry-specific regulations. This document typically includes detailed specifications for material quality, delivery schedules, pricing mechanisms, and risk allocation between parties. It is especially important in Indonesia's growing industrial and agricultural sectors, where supply chain reliability and regulatory compliance are crucial. The agreement should be tailored to address specific Indonesian business practices, local content requirements where applicable, and appropriate dispute resolution mechanisms within the Indonesian legal framework.
Suggested Sections

1. Parties: Identification of supplier and buyer, including registration details as required under Indonesian law

2. Background: Context of the agreement, business relationship, and purpose of the supply arrangement

3. Definitions and Interpretation: Key terms used in the agreement, including technical feedstock specifications and industry terminology

4. Supply Obligations: Core obligations of supplier to provide and buyer to purchase feedstock, including minimum/maximum quantities

5. Term and Renewal: Duration of the agreement and conditions for renewal or extension

6. Price and Payment: Pricing mechanism, payment terms, invoicing requirements, and currency provisions

7. Delivery and Acceptance: Delivery terms, schedule, logistics arrangements, and acceptance criteria

8. Quality Requirements: Quality specifications, testing procedures, and quality assurance requirements

9. Title and Risk: Transfer of ownership and risk in the feedstock

10. Compliance with Laws: Obligations to comply with Indonesian regulations, permits, and licenses

11. Representations and Warranties: Standard warranties and specific feedstock-related representations

12. Force Majeure: Events excusing performance and procedures for handling force majeure situations

13. Termination: Grounds for termination and consequences of termination

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

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Exclusivity: Used when supplier agrees to supply exclusively to buyer or buyer agrees to purchase exclusively from supplier

2. Storage and Handling: Include when specific storage requirements or handling procedures are critical for the feedstock

3. Insurance: Detailed insurance requirements section when high-value or hazardous feedstock is involved

4. Environmental Compliance: Expanded section when feedstock involves environmental risks or special handling requirements

5. Security of Supply: Include when alternative supply arrangements or security stockpiles are required

6. Intellectual Property: Required when proprietary processes or technologies are involved in feedstock production

7. Sustainability Requirements: Include when feedstock must meet specific sustainability or certification requirements

8. Price Adjustment Mechanism: Detailed pricing adjustment procedures for long-term agreements or volatile markets

9. Transportation: Detailed logistics and transportation requirements when complex delivery arrangements are needed

10. Change in Law: Specific provisions for handling regulatory changes when operating in evolving regulatory environments

Suggested Schedules

1. Schedule 1 - Feedstock Specifications: Detailed technical specifications and quality parameters for the feedstock

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing calculations, adjustments, and payment procedures

3. Schedule 3 - Delivery Schedule: Timing and quantity of deliveries, including any seasonal variations

4. Schedule 4 - Testing Procedures: Detailed procedures for sampling, testing, and quality verification

5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria

6. Schedule 6 - Compliance Certificates: Required permits, licenses, and compliance certificates

7. Schedule 7 - Storage and Handling Requirements: Specific procedures for storage and handling of feedstock

8. Schedule 8 - Contact Details: Key personnel and contact information for both parties

9. Appendix A - Form of Delivery Document: Standard form for delivery documentation

10. Appendix B - Quality Certificate Template: Standard format for quality certification

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

Relevant legal definitions
Clauses
Relevant Industries

Agriculture

Manufacturing

Food and Beverage

Biofuel Production

Chemical Processing

Textile Manufacturing

Palm Oil Industry

Paper and Pulp

Animal Feed Production

Renewable Energy

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Quality Control

Logistics

Finance

Risk Management

Compliance

Commercial

Production

Business Development

Relevant Roles

Supply Chain Manager

Procurement Director

Commercial Manager

Legal Counsel

Operations Manager

Quality Control Manager

Logistics Manager

Risk Manager

Compliance Officer

Contract Administrator

Chief Operating Officer

Purchasing Manager

Production Manager

Business Development Manager

Finance Director

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental legal framework for contracts, including formation, validity requirements, and general obligations of parties
Law No. 7 of 2014 on Trade (Undang-Undang Perdagangan): Governs trading activities in Indonesia, including domestic and international trade of goods, and establishes requirements for supply agreements
Government Regulation No. 44 of 1997 on Partnership: Regulates partnership arrangements between businesses, including supply chain relationships and cooperation agreements
Law No. 5 of 1999 on Anti-Monopoly and Unfair Business Competition: Ensures fair competition and prevents monopolistic practices in supply agreements
Law No. 32 of 2009 on Environmental Protection and Management: Sets environmental compliance requirements for handling and transportation of feedstock materials
Ministry of Agriculture Regulation No. 273/KPTS/OT.160/4/2007: Provides guidelines for agricultural commodities handling and quality standards
Law No. 25 of 2007 on Investment: Regulates investment activities and business operations, including requirements for foreign investors in supply agreements
Government Regulation No. 29 of 2021 on Implementation of Trade Business Sector: Details specific requirements for businesses engaged in trading activities, including supply chain management
Ministry of Trade Regulation No. 20 of 2021: Provides specific guidelines on goods distribution and supply chain documentation requirements
Law No. 3 of 2014 on Industrial Affairs: Regulates industrial activities and supply chain relationships in the industrial sector
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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