Outsourcing Agreement Template for Indonesia

This Outsourcing Agreement template is designed for use in Indonesia, where outsourcing arrangements are subject to strict regulatory oversight. The document is essential when a company wishes to engage an external service provider for non-core business functions, as permitted under Indonesian law. The agreement ensures compliance with Law No. 13 of 2003 on Manpower and related regulations, which specify which activities can be outsourced and set requirements for both service providers and recipients. It includes comprehensive provisions for worker protection, social security compliance, and operational requirements, making it suitable for various business sectors operating in Indonesia. The document should be used when establishing new outsourcing relationships or updating existing arrangements to ensure current regulatory compliance.

1. Parties: Identification of the service provider and service recipient, including their complete legal names, addresses, and company registration details as required under Indonesian law

2. Background: Context of the agreement, brief description of the parties' businesses, and their intentions regarding the outsourcing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including specific Indonesian legal terms and concepts

4. Scope of Services: Detailed description of outsourced services, ensuring they comply with Indonesian regulations on permissible outsourcing activities

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

6. Service Provider Obligations: Core responsibilities of the service provider, including service delivery, compliance with labor laws, and maintaining necessary licenses

7. Service Recipient Obligations: Key responsibilities of the service recipient, including access, information provision, and payment obligations

8. Personnel Requirements: Requirements for outsourced workers, including qualifications, compliance with labor laws, and worker protection measures

9. Fees and Payment Terms: Payment structure, invoicing requirements, and payment procedures

10. Performance Standards: Service levels, quality requirements, and performance monitoring mechanisms

11. Compliance with Laws: Obligations to comply with Indonesian labor laws, social security requirements, and other relevant regulations

12. Confidentiality: Protection of confidential information and trade secrets

13. Intellectual Property Rights: Ownership and usage rights of intellectual property created or used during service provision

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

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

16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law provisions

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