Manufacturing Supply Agreement Template for Indonesia

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Key Requirements PROMPT example:

Manufacturing Supply Agreement

"I need a Manufacturing Supply Agreement under Indonesian law for automotive parts manufacturing, where we'll be the manufacturer supplying to multiple Japanese car makers, with strict quality control requirements and minimum purchase commitments starting March 2025."

Document background
The Manufacturing Supply Agreement is essential for businesses engaging in manufacturing relationships in Indonesia. It is typically used when a company needs to outsource the manufacturing of products to an Indonesian manufacturer or when establishing a long-term manufacturing and supply arrangement. The agreement must comply with Indonesian law, particularly Law No. 3 of 2014 on Industry and related regulations, while addressing key commercial terms, technical specifications, quality requirements, and risk allocation. This document is crucial for protecting both parties' interests, ensuring clear performance standards, and establishing a framework for a successful manufacturing relationship. It includes provisions for regulatory compliance, intellectual property protection, and dispute resolution specific to the Indonesian legal context.
Suggested Sections

1. Parties: Identification and details of the manufacturer and the purchaser

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Supply Obligations: Core obligations of manufacturer to produce and supply products

5. Manufacturing Requirements: Requirements for manufacturing process, facilities, and compliance with standards

6. Orders and Forecasts: Process for placing orders, lead times, and forecast requirements

7. Quality Control: Quality standards, testing procedures, and acceptance criteria

8. Pricing and Payment: Product pricing, payment terms, and price adjustment mechanisms

9. Delivery and Risk: Delivery terms, transfer of risk, and shipping requirements

10. Warranties: Product warranties and quality guarantees

11. Intellectual Property: IP ownership, licenses, and protection measures

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and termination provisions

14. Force Majeure: Events excusing performance and related procedures

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

Optional Sections

1. Exclusivity: Used when manufacturer is granted exclusive rights or has exclusive obligations

2. Minimum Purchase Commitments: Include when buyer commits to minimum purchase volumes

3. Tooling and Equipment: Required when specific tools or equipment are provided by either party

4. Environmental Compliance: Detailed section when manufacturing involves significant environmental considerations

5. Technology Transfer: Include when manufacturing involves transfer of technical knowledge or processes

6. Change Control: Detailed procedures for implementing changes to specifications or processes

7. Business Continuity: Include when supply chain continuity is critical

8. Regulatory Compliance: Detailed section for heavily regulated products

9. Insurance Requirements: Detailed insurance obligations beyond standard coverage

Suggested Schedules

1. Product Specifications: Detailed technical specifications for products

2. Pricing Schedule: Detailed pricing for each product, including volume discounts

3. Quality Standards and Testing Procedures: Detailed quality requirements and testing protocols

4. Manufacturing Site Requirements: Specific requirements for manufacturing facilities

5. Key Performance Indicators: Metrics for measuring manufacturing and supply performance

6. Form of Purchase Order: Standard form for placing orders

7. Technical Requirements: Detailed technical requirements for manufacturing process

8. Compliance Requirements: Specific regulatory and compliance requirements

9. Service Level Agreement: Detailed performance metrics and standards

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Automotive Manufacturing

Electronics Manufacturing

Textile and Garment Industry

Food and Beverage Production

Pharmaceutical Manufacturing

Consumer Goods Manufacturing

Industrial Equipment Manufacturing

Chemical Manufacturing

Aerospace Components

Medical Devices

Relevant Teams

Legal

Procurement

Operations

Manufacturing

Quality Control

Supply Chain

Compliance

Risk Management

Technical Operations

Commercial

Relevant Roles

Supply Chain Manager

Manufacturing Director

Procurement Manager

Quality Control Manager

Operations Director

Legal Counsel

Commercial Director

Production Manager

Compliance Officer

Contract Manager

Chief Operations Officer

Factory Manager

Industrial Relations Manager

Technical Director

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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