Framework Partnership Agreement Template for Indonesia

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Key Requirements PROMPT example:

Framework Partnership Agreement

"I need a Framework Partnership Agreement for a joint manufacturing venture between our Indonesian PT company and a Japanese technology provider, with operations starting March 2025, including provisions for technology transfer and local content requirements."

Document background
Framework Partnership Agreements are essential tools for establishing strategic business relationships in Indonesia's growing economy. These agreements are particularly valuable when parties anticipate multiple collaborative projects or ongoing business activities but want flexibility in implementation. The document provides a foundation for partnership governance while complying with Indonesian regulatory requirements, including the Investment Law (Law No. 25 of 2007) and Company Law (Law No. 40 of 2007). It addresses key aspects such as profit sharing, intellectual property rights, local content requirements, and dispute resolution mechanisms under Indonesian jurisdiction. The Framework Partnership Agreement is designed to accommodate various business models while ensuring compliance with Indonesia's dynamic regulatory environment and protecting both local and international parties' interests.
Suggested Sections

1. Parties: Identification and details of the contracting parties, including registration numbers and addresses

2. Background: Context of the partnership, objectives, and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Partnership Scope and Structure: Defines the nature, scope, and structure of the partnership relationship

5. Duration and Term: Period of the agreement, including commencement date and renewal provisions

6. Roles and Responsibilities: Detailed obligations and responsibilities of each party

7. Financial Arrangements: Framework for financial relationships, including cost-sharing and profit distribution principles

8. Governance Structure: Management and decision-making processes, including steering committee structure

9. Intellectual Property Rights: Ownership and usage rights of IP brought into or created during the partnership

10. Confidentiality: Protection and handling of confidential information

11. Compliance and Regulatory Matters: Obligations regarding Indonesian laws and regulations

12. Termination: Grounds and process for termination of the agreement

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

14. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Competition and Exclusivity: Used when parties need to define non-compete obligations or exclusive arrangements

2. Personnel and Resources: Include when the partnership involves sharing of human resources or facilities

3. Quality Standards: Necessary when specific performance or quality standards need to be maintained

4. Insurance and Liability: Include when specific insurance requirements or liability allocation needs to be detailed

5. Data Protection: Required when partnership involves processing of personal or sensitive data

6. Force Majeure: Include for protection against unforeseen events affecting partnership performance

7. Anti-Corruption and Ethics: Important for partnerships with international entities or government involvement

8. Environmental Compliance: Necessary for partnerships involving environmental impacts or sustainability commitments

9. Local Content Requirements: Include when partnership must comply with Indonesian local content regulations

Suggested Schedules

1. Schedule 1 - Key Performance Indicators: Detailed metrics and performance standards for the partnership

2. Schedule 2 - Financial Terms: Detailed financial arrangements, including pricing mechanisms and payment terms

3. Schedule 3 - Governance Procedures: Detailed procedures for partnership management and decision-making

4. Schedule 4 - Technical Specifications: Technical requirements and standards applicable to the partnership

5. Schedule 5 - Project Timeline: Key milestones and deadlines for partnership implementation

6. Appendix A - Contact Details: List of key contacts and authorized representatives from each party

7. Appendix B - Required Permits and Licenses: List of regulatory approvals required for the partnership

8. Appendix C - Compliance Checklist: Checklist of regulatory and legal compliance requirements

9. Appendix D - Form of Project Work Order: Template for specific project agreements under the framework

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

Manufacturing

Technology

Agriculture

Mining and Resources

Infrastructure

Healthcare

Education

Financial Services

Retail and Consumer Goods

Energy

Transportation and Logistics

Telecommunications

Construction

Professional Services

Tourism and Hospitality

Relevant Teams

Legal

Business Development

Commercial

Operations

Finance

Compliance

Strategy

Risk Management

Corporate Affairs

International Relations

Project Management

Procurement

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

Legal Director

Head of Business Development

Chief Operating Officer

Partnership Manager

Commercial Director

Chief Financial Officer

Compliance Officer

Strategy Director

Operations Manager

Project Manager

Contract Manager

Business Development Manager

Risk Manager

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing contracts and agreements in Indonesia, particularly Book III on Obligations, which provides the basic principles of contract formation, validity, and enforcement
Indonesian Commercial Code (KUHD): Regulates commercial relationships and business partnerships in Indonesia, providing specific provisions for business agreements and commercial transactions
Law No. 25 of 2007 on Investment: Regulates investment activities in Indonesia, including partnerships with foreign entities and the framework for business cooperation
Law No. 40 of 2007 on Limited Liability Companies: Provides the legal framework for corporate entities and their ability to enter into partnership agreements
Law No. 24 of 2000 on International Agreements: Relevant if the partnership involves international parties, governing the formation and implementation of international agreements
Law No. 5 of 1999 on Competition: Anti-monopoly and fair business competition law that must be considered in partnership arrangements to ensure compliance with competition regulations
Law No. 13 of 2003 on Employment: Relevant if the partnership agreement involves employment matters or the sharing of human resources
Law No. 20 of 2016 on Marks and Geographical Indications: Important for provisions regarding intellectual property rights and brand usage in partnership agreements
Presidential Regulation No. 44 of 2016: Negative Investment List regulation that specifies business fields that are closed or conditionally open to partnership arrangements
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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