Document background
The Master Relationship Agreement is a crucial document for establishing long-term business relationships in Indonesia, particularly suited for complex commercial arrangements where parties anticipate multiple transactions or service engagements over time. This agreement type creates an efficient framework by setting out standard terms that apply across all subsequent transactions, eliminating the need to negotiate basic terms repeatedly. Under Indonesian law, particularly considering Law No. 24 of 2009, the agreement must be drafted in Indonesian language (with permissible bilingual versions), and must comply with fundamental principles of Indonesian contract law as established in the Civil Code (KUHPerdata). The document typically includes comprehensive provisions for governance, risk allocation, and operational procedures, while allowing flexibility through service-specific orders or statements of work.
