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.
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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
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
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
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