Document background
The Preferred Vendor Agreement serves as a cornerstone document for companies operating in Indonesia who wish to establish strategic, long-term relationships with key suppliers. This document becomes relevant when a company identifies a reliable supplier with whom they want to formalize a preferential business relationship, typically involving regular or high-volume purchases. The agreement, governed by Indonesian law, particularly the Civil Code and Job Creation Law, sets out comprehensive terms including preferential pricing, service levels, and ordering procedures. It's commonly used when a company wants to secure favorable terms, ensure supply chain stability, or streamline procurement processes. The document typically includes provisions for compliance with Indonesian business regulations, anti-monopoly considerations, and specific industry requirements, while establishing the framework for a mutually beneficial business relationship that may include exclusive or semi-exclusive supply arrangements.
