Document background
The Framework Supply Agreement is designed for businesses operating in Indonesia that require a structured yet flexible arrangement for recurring supply needs. This document type is particularly valuable when parties anticipate an ongoing supply relationship rather than a one-off transaction. It establishes the primary commercial and legal framework while allowing for individual purchase orders to be placed without renegotiating terms each time. The agreement addresses key requirements under Indonesian law, including provisions of the Civil Code (KUHPerdata) and Trade Law No. 7 of 2014, while incorporating international best practices for supply chain management. It's especially relevant for businesses seeking to establish stable, long-term supply relationships in the Indonesian market, whether as local entities or foreign companies with Indonesian operations.
