International Consulting Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for consulting services provided by an international consultant or consulting firm to an Indonesian entity. The document addresses key aspects including scope of services, payment terms, intellectual property rights, confidentiality, and regulatory compliance with Indonesian laws including mandatory language requirements, tax regulations, and foreign business operations. It includes specific provisions for cross-border service delivery, currency considerations, and dispute resolution mechanisms suitable for international commercial relationships.

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What is a International Consulting Contract?

The International Consulting Contract is essential for formalizing consulting relationships between foreign service providers and Indonesian entities. This document is specifically designed to comply with Indonesian legal requirements while facilitating international business relationships. It becomes necessary when engaging foreign expertise, implementing global best practices, or seeking specialized international consulting services. The contract addresses crucial elements such as bilateral language requirements under Law No. 24 of 2009, tax implications for cross-border services, intellectual property protection, and currency regulations. It's particularly relevant in the context of Indonesia's growing economy and increasing need for international expertise across various sectors. The document provides a robust framework for managing expectations, deliverables, and risks in cross-border consulting engagements while ensuring compliance with both Indonesian regulations and international business standards.

What sections should be included in a International Consulting Contract?

1. Parties: Identification of the consultant and the client, including registration details and addresses

2. Background: Context of the consulting arrangement and general purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', and 'Confidential Information'

4. Scope of Services: Detailed description of consulting services to be provided

5. Term and Timeline: Duration of the agreement and key milestone dates

6. Consultant's Obligations: Key responsibilities, performance standards, and delivery requirements

7. Client's Obligations: Client's responsibilities, including provision of information and cooperation

8. Fees and Payment Terms: Compensation structure, payment schedule, currency, and tax considerations

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Independent Contractor Status: Clear statement of independent contractor relationship

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

13. Termination: Grounds for termination and consequences

14. Governing Law and Jurisdiction: Specification of Indonesian law and agreed dispute resolution mechanism

15. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

What sections are optional to include in a International Consulting Contract?

1. Non-Competition: Restrictions on competitive activities, if relevant to the consulting arrangement

2. Insurance: Requirements for professional liability or other insurance coverage

3. Data Protection: Specific provisions for handling personal data if the services involve data processing

4. Force Majeure: Detailed provisions for handling unforeseen circumstances, particularly relevant for long-term contracts

5. Assignment and Subcontracting: Rights and restrictions regarding transfer of obligations or use of subcontractors

6. Local Representative: Appointment of local representative if required for regulatory compliance

7. Currency Risk: Provisions for handling exchange rate fluctuations in international payments

8. Training and Knowledge Transfer: Specific provisions for knowledge transfer to client's staff if part of the scope

What schedules should be included in a International Consulting Contract?

1. Schedule 1 - Scope of Services: Detailed description of consulting services, deliverables, and specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment milestones, and expenses

3. Schedule 3 - Timeline and Milestones: Detailed project timeline and delivery schedule

4. Schedule 4 - Key Personnel: List of key consultant personnel assigned to the project

5. Schedule 5 - Client Materials: List of materials and information to be provided by the client

6. Schedule 6 - Service Levels: Performance metrics and quality standards if applicable

7. Appendix A - Required Forms: Any forms required under Indonesian law or for regulatory compliance

8. Appendix B - Tax Requirements: Specific tax forms and requirements for international consulting services

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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