Management Agreement Template for Indonesia

The Management Agreement serves as a critical instrument for businesses operating in Indonesia who seek to engage external management expertise or establish formal management arrangements. This document type is particularly relevant in contexts where specialized management services are required, whether for operational efficiency, business expansion, or regulatory compliance. The agreement must comply with Indonesian law, including the Civil Code (KUH Perdata), investment regulations, and employment laws. It typically covers comprehensive details about service scope, management authority, performance standards, fee structures, and risk allocation. This agreement type is especially important in Indonesia's growing business landscape where professional management services are increasingly sought after, and where clear documentation of management relationships is required for regulatory compliance and good corporate governance.

1. Parties: Identification of the service provider (Manager) and the company receiving management services, including their complete legal details and representatives

2. Background: Context of the agreement, business purpose, and brief description of why the management services are required

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Appointment and Scope of Services: Formal appointment of the manager and detailed description of management services to be provided

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

6. Manager's Rights and Obligations: Detailed responsibilities, authority levels, and duties of the manager

7. Company's Rights and Obligations: Company's responsibilities, including provision of information, facilities, and support

8. Management Fees and Expenses: Fee structure, payment terms, reimbursable expenses, and payment mechanics

9. Reporting and Performance Standards: Required reports, performance metrics, and quality standards

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of IP created during the management services

12. Indemnification and Liability: Mutual indemnities and limitations of liability

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

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

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