Management Company Agreement Template for Indonesia

The Management Company Agreement serves as a crucial legal instrument in Indonesian business operations, typically used when a company seeks to outsource its management functions or require specialized management expertise. This document is essential for businesses operating under Indonesian jurisdiction that need professional management services while ensuring compliance with local regulations, particularly Law No. 40 of 2007 on Limited Liability Companies and related investment laws. The agreement comprehensively covers management service scope, performance metrics, fee structures, reporting requirements, and governance arrangements, while incorporating necessary provisions for regulatory compliance, risk management, and operational oversight. It's particularly relevant for companies undergoing restructuring, expansion, or those requiring specialized management expertise in the Indonesian market context.

1. Parties: Identification of the company and management service provider, including their complete legal details and representatives

2. Background: Context of the agreement, including the company's need for management services and the manager's qualifications

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of management services to be provided

5. Duration and Term: Period of the agreement, including commencement date and renewal provisions

6. Management Services: Detailed description of specific management services, responsibilities, and deliverables

7. Manager's Obligations: Key responsibilities, duties, and standards of performance expected from the manager

8. Company's Obligations: Responsibilities and obligations of the company to enable service delivery

9. Fees and Payment: Management fees, payment terms, expenses, and related financial arrangements

10. Performance Standards: Required service levels, KPIs, and performance measurement criteria

11. Reporting Requirements: Regular reporting obligations, including format, frequency, and content

12. Confidentiality: Protection of confidential information and trade secrets

13. Intellectual Property: Ownership and usage rights of IP created during service provision

14. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification provisions

15. Termination: Grounds for termination, notice requirements, and consequences

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

17. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

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