Investment Mandate Agreement Template for Indonesia

The Investment Mandate Agreement is a crucial document used when establishing a professional investment management relationship in Indonesia. It is typically employed when individuals, corporations, or institutions seek to delegate the management of their investment portfolio to a licensed investment manager. The agreement must comply with Indonesian Financial Services Authority (OJK) regulations and includes detailed provisions on investment strategy, risk management, fees, and reporting requirements. This document is essential for ensuring clear understanding between parties and maintaining regulatory compliance in the Indonesian investment management industry. The agreement includes specific provisions required by Indonesian law and typically references key regulations such as Law No. 25 of 2007 on Investment and OJK regulations on investment management services.

1. Parties: Identification of the investment manager and the client, including their respective legal status and authority

2. Background: Context of the agreement, including the client's intention to appoint the investment manager and the manager's qualifications and licenses

3. Definitions: Detailed definitions of technical terms, regulatory references, and key concepts used throughout the agreement

4. Appointment and Authority: Formal appointment of the investment manager and scope of delegated authority

5. Investment Objectives and Strategy: Clear statement of investment goals, strategy, and any specific requirements or restrictions

6. Services and Obligations: Detailed description of services to be provided by the investment manager and their specific obligations

7. Client's Obligations: Responsibilities and obligations of the client, including information provision and compliance requirements

8. Fees and Expenses: Comprehensive fee structure, including management fees, performance fees, and other charges

9. Risk Disclosures: Mandatory risk warnings and acknowledgments as required by Indonesian regulations

10. Reporting and Valuations: Requirements for periodic reporting, portfolio valuations, and performance measurement

11. Compliance and Regulations: Compliance with Indonesian laws, OJK regulations, and other applicable requirements

12. Confidentiality: Provisions regarding the protection and handling of confidential information

13. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms