The Freelance Independent Contractor Agreement is essential for businesses operating in Indonesia that engage independent professionals for specific projects or services. This document is designed to comply with Indonesian Civil Code (KUHPerdata) and relevant employment regulations, particularly Law No. 13 of 2003 on Manpower, ensuring clear distinction from employment relationships. It's commonly used when engaging freelancers, consultants, or independent professionals for project-based work, technical services, or specialized expertise. The agreement includes crucial provisions for intellectual property rights, confidentiality, payment terms, and tax considerations, while incorporating necessary safeguards to maintain the independent nature of the relationship and comply with Indonesian regulatory requirements.
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1. Parties: Identification of the contracting parties, including full legal names, addresses, and any relevant registration numbers
2. Background: Context of the agreement and confirmation of the contractor's independent status
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of the services to be provided by the contractor
5. Term and Termination: Duration of the agreement and conditions for termination
6. Compensation and Payment Terms: Fee structure, payment schedule, and invoicing requirements
7. Independent Contractor Status: Clear statement of independent contractor relationship and distinction from employment
8. Intellectual Property Rights: Ownership and transfer of IP created during the engagement
9. Confidentiality: Protection of confidential information and trade secrets
10. Contractor's Obligations: Key responsibilities, standards of work, and compliance requirements
11. Client's Obligations: Client's responsibilities and support provisions
12. Representations and Warranties: Statements of fact and promises by both parties
13. Limitation of Liability: Limits on parties' liability and indemnification provisions
14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Non-Compete: Restrictions on competing activities, used when contractor will have access to sensitive business information
2. Equipment and Resources: Provisions regarding tools and resources, used when specific equipment or software is required
3. Insurance: Insurance requirements, used for high-risk services or when required by client policy
4. Data Protection: Specific data handling requirements, used when personal or sensitive data processing is involved
5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or critical service agreements
6. Dispute Resolution: Specific dispute resolution procedures, used when parties want to specify mediation or arbitration
7. Subcontracting: Terms for engaging subcontractors, used when subcontracting might be necessary
8. Foreign Currency Provisions: Currency exchange terms, used when payments are made in non-Indonesian Rupiah
1. Schedule A - Service Description: Detailed scope of work, deliverables, and technical specifications
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule C - Service Levels: Performance metrics and quality standards
4. Schedule D - Project Timeline: Project phases, milestones, and delivery dates
5. Appendix 1 - Required Qualifications: List of required certifications, licenses, or qualifications
6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable
7. Appendix 3 - Client Policies: Relevant client policies the contractor must comply with
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