General Terms Agreement Template for Indonesia

This document serves as a comprehensive General Terms Agreement governed by Indonesian law, establishing the fundamental terms and conditions for business relationships between contracting parties. It incorporates key requirements under the Indonesian Civil Code (KUHPerdata) and relevant commercial regulations, including mandatory language requirements under Law No. 24 of 2009. The agreement provides a framework for ongoing business relationships, covering essential aspects such as service delivery, payment terms, liability allocation, and dispute resolution mechanisms, while ensuring compliance with Indonesian legal requirements and commercial practices.

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What is a General Terms Agreement?

This General Terms Agreement template is designed for use in Indonesian business transactions, providing a standardized framework for commercial relationships between parties operating under Indonesian law. It is particularly useful for businesses establishing ongoing commercial relationships that require a foundation of standard terms and conditions. The document incorporates mandatory requirements under Indonesian law, including the Civil Code (KUHPerdata), consumer protection regulations, and language requirements under Law No. 24 of 2009. It serves as a master agreement that can be used across various transactions and business relationships, reducing the need for repetitive negotiation of standard terms while maintaining flexibility for specific commercial arrangements through supplementary agreements or schedules.

What sections should be included in a General Terms Agreement?

1. Parties: Identification of the contracting parties with complete legal names and addresses as required under Indonesian law

2. Background: Context of the agreement and general business relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: General parameters of the business relationship and application of the terms

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Rights and Obligations: Core responsibilities and rights of each party

7. Payment Terms: General payment conditions, currency, and payment methods

8. Confidentiality: Protection and handling of confidential information

9. Intellectual Property: Ownership and usage rights of intellectual property

10. Liability and Indemnification: Allocation of risks and responsibilities between parties

11. Force Majeure: Provisions for unforeseen circumstances affecting performance

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

13. Language: Specification of dual language requirements and prevailing version as per Law No. 24 of 2009

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a General Terms Agreement?

1. Insurance: Insurance requirements when specific coverage is needed for the business relationship

2. Compliance with Laws: Specific regulatory compliance obligations when operating in regulated industries

3. Data Protection: Specific data handling and privacy requirements when personal data is processed

4. Anti-Corruption: Anti-corruption provisions when dealing with government entities or high-risk sectors

5. Assignment and Subcontracting: Rights to assign or subcontract when relevant to the business relationship

6. Export Control: Export control provisions when dealing with international trade

7. Service Levels: Service level requirements when specific performance metrics are needed

What schedules should be included in a General Terms Agreement?

1. Schedule 1 - Pricing and Payment Details: Detailed pricing structures, payment terms, and billing procedures

2. Schedule 2 - Service/Product Specifications: Detailed specifications of services or products covered by the agreement

3. Schedule 3 - Key Contacts: List of key personnel and contact details for both parties

4. Schedule 4 - Technical Requirements: Technical specifications or requirements if applicable

5. Appendix A - Form Documents: Standard forms used under the agreement such as purchase orders or service requests

6. Appendix B - Compliance Requirements: Detailed compliance requirements and procedures

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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