On Premise Software License Agreement Template for Indonesia

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Key Requirements PROMPT example:

On Premise Software License Agreement

"I need an On Premise Software License Agreement for enterprise accounting software to be deployed across our Indonesian banking operations, with strict data security requirements and provisions for quarterly audits, planned for implementation in March 2025."

Document background
The On Premise Software License Agreement is essential for organizations deploying software within their own infrastructure in Indonesia. This document is used when a software provider grants a license to a customer to install and use software on the customer's own servers or computers, rather than accessing it through cloud services. The agreement must comply with Indonesian legal requirements, including copyright law, electronic transaction regulations, and consumer protection standards. It typically includes detailed provisions about installation, usage rights, technical specifications, maintenance services, and user limitations. This type of agreement is particularly important for organizations that need to maintain control over their data and software infrastructure, or have specific security or regulatory requirements that necessitate on-premise deployment. The document should be customized based on the specific software being licensed, the intended use, and any industry-specific regulations that may apply.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including their legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the software, and purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Software, Documentation, Intellectual Property Rights, and Licensed Users

4. Grant of License: Scope of the license, including usage rights, restrictions, and territory limitations

5. License Fees and Payment: Payment terms, fee structure, and payment schedules

6. Intellectual Property Rights: Confirmation of ownership rights, protection of IP, and restrictions on use

7. Licensee Obligations: Key responsibilities of the licensee including acceptable use, security measures, and access control

8. Technical Requirements: Minimum system requirements and technical specifications for software operation

9. Support and Maintenance: Terms for technical support, updates, and maintenance services

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Representations: Software performance warranties and representations from both parties

12. Limitation of Liability: Limitations on liability and disclaimers compliant with Indonesian law

13. Term and Termination: Duration of the agreement, renewal terms, and termination conditions

14. Force Majeure: Provisions for unforeseen circumstances affecting performance

15. Governing Law and Dispute Resolution: Confirmation of Indonesian law governance and dispute resolution procedures

16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Third-Party Software: Required when the software includes third-party components, detailing additional terms and licenses

2. Data Protection: Required when the software processes personal data, ensuring compliance with Indonesian data protection regulations

3. Export Control: Needed when the software is subject to export control regulations

4. Professional Services: Include when additional implementation or consulting services are provided

5. Source Code Escrow: Optional provision for source code escrow arrangements for business-critical applications

6. Disaster Recovery: Required for mission-critical software implementations

7. Insurance: Include when specific insurance requirements are needed for high-value or high-risk implementations

8. Change Control: Required for agreements where formal change management procedures are necessary

Suggested Schedules

1. Schedule 1 - Software Description: Detailed description of the licensed software, including modules and features

2. Schedule 2 - License Fees: Detailed breakdown of license fees, payment schedule, and pricing terms

3. Schedule 3 - Technical Specifications: Detailed technical requirements and specifications for the software

4. Schedule 4 - Service Level Agreement: Performance metrics, support levels, and response times

5. Schedule 5 - Maintenance Services: Detailed description of maintenance and support services

6. Appendix A - Authorized Users: List of authorized users or user categories and access levels

7. Appendix B - Accepted Testing Procedures: Testing and acceptance criteria for the software

8. Appendix C - Security Requirements: Detailed security requirements and protocols

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

Information Technology

Banking and Financial Services

Manufacturing

Healthcare

Retail

Education

Government and Public Sector

Telecommunications

Energy and Utilities

Professional Services

Insurance

Mining and Resources

Agriculture

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Finance

Risk Management

Information Security

Operations

Enterprise Architecture

Vendor Management

Software Asset Management

Infrastructure

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Software License Manager

IT Security Manager

Chief Technology Officer

Contract Manager

Compliance Officer

IT Infrastructure Manager

Enterprise Architect

Chief Financial Officer

Risk Manager

Systems Administrator

IT Operations Manager

Industries
Law No. 28 of 2014 on Copyright: The primary legislation governing copyright protection in Indonesia, including specific provisions for computer programs and software. This law provides the legal basis for software licensing and protection of intellectual property rights.
Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law): Regulates electronic transactions and information systems in Indonesia, including provisions relevant to software distribution, electronic contracts, and digital signatures.
Law No. 8 of 1999 on Consumer Protection: Provides framework for consumer protection rights and obligations, including software user protection, warranty provisions, and liability limitations.
Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata): Contains general contract law principles applicable to software license agreements, including formation of contracts, validity requirements, and contractual obligations.
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Implementing regulation for the ITE Law, providing detailed requirements for electronic system operations and transactions, including software deployment and usage.
Law No. 24 of 2019 on Creative Economy: Provides additional framework for protection and development of creative industries, including software development and licensing.
Minister of Communication and Information Technology Regulation No. 5 of 2019: Regulates the implementation of electronic system and transaction operators, including requirements for software providers and operators.
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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