Procurement Service Level Agreement Template for Indonesia

A Procurement Service Level Agreement is essential for organizations operating in Indonesia that wish to outsource or formalize their procurement functions. This document type is specifically designed to comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and Presidential Regulation No. 16 of 2018 on procurement. It establishes clear performance metrics, service standards, and operational requirements between the procurement service provider and the client organization. The agreement is particularly important in the Indonesian context where regulatory compliance, local business practices, and specific procurement rules must be carefully observed. The document includes comprehensive details about service scope, performance measurements, reporting requirements, governance structures, and remediation processes, making it suitable for both domestic and international companies operating in Indonesia. The agreement should be customized based on the specific procurement services being provided, industry requirements, and the scale of operations while maintaining compliance with Indonesian procurement regulations.

1. Parties: Identification of the service provider and customer, including their legal status and registration details as required under Indonesian law

2. Background: Context of the agreement, relationship between parties, and general purpose of the procurement arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpreting the agreement

4. Scope of Services: Detailed description of the procurement services to be provided, including specific responsibilities and deliverables

5. Service Levels and Performance Metrics: Specific, measurable performance standards and KPIs that the service provider must meet

6. Duration and Term: Period of the agreement, including commencement date, term, and renewal provisions

7. Pricing and Payment Terms: Detailed fee structure, payment schedule, invoicing requirements, and payment methods

8. Service Provider Obligations: Comprehensive list of service provider responsibilities, including compliance with Indonesian regulations

9. Customer Obligations: Customer's responsibilities and commitments to enable service delivery

10. Monitoring and Reporting: Requirements for performance monitoring, reporting frequency, and format of reports

11. Governance and Communication: Management structure, meeting schedules, and communication protocols

12. Compliance and Audit Rights: Requirements for regulatory compliance and customer's right to audit

13. Confidentiality: Protection of confidential information and trade secrets

14. Intellectual Property Rights: Ownership and usage rights of IP developed or used during service provision

15. Liability and Indemnification: Limitations of liability and indemnification obligations of both parties

16. Force Majeure: Provisions for handling events beyond reasonable control

17. Termination: Grounds for termination, notice periods, and consequences of termination

18. Dispute Resolution: Process for resolving disputes, including jurisdiction under Indonesian law

19. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law