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Product Supply Agreement

Product Supply Agreement Template for Indonesia

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Key Requirements PROMPT example:

Product Supply Agreement

"I need a Product Supply Agreement under Indonesian law for my electronics manufacturing company to supply smartphone components to a major distributor in Jakarta, with specific quality control requirements and quarterly minimum purchase commitments starting from March 2025."

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Document background
The Product Supply Agreement serves as a foundational document for establishing and managing commercial supply relationships in Indonesia. It is particularly important for businesses engaged in regular supply arrangements, whether domestic or international, that require a structured framework for their trading relationship. The agreement must comply with Indonesian legal requirements, including the Civil Code (Kitab Undang-undang Hukum Perdata), Trade Law No. 7 of 2014, and Consumer Protection Law No. 8 of 1999. This document is essential when parties need to formalize their supply arrangements, establish clear quality and delivery standards, set pricing mechanisms, and define their respective rights and obligations. It typically includes detailed provisions on product specifications, ordering processes, quality control, warranties, risk allocation, and dispute resolution mechanisms, all tailored to meet Indonesian regulatory requirements while facilitating efficient business operations.
Suggested Sections

1. Parties: Identification of supplier and buyer, including complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, business relationship, and general purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Core obligations of the supplier, including product quality, quantity, and delivery requirements

5. Ordering Process: Procedures for placing and accepting orders, including lead times and minimum order quantities

6. Price and Payment: Product pricing, payment terms, invoicing procedures, and currency specifications

7. Delivery and Risk: Delivery terms, transfer of risk, shipping requirements, and Incoterms

8. Quality and Inspection: Quality standards, inspection rights, acceptance/rejection procedures

9. Warranties: Product warranties, quality guarantees, and remedy for defective products

10. Term and Termination: Duration of agreement, renewal terms, and termination rights

11. Confidentiality: Protection of confidential information and trade secrets

12. Force Majeure: Events excusing performance and related procedures

13. Dispute Resolution: Process for resolving disputes, choice of law, and jurisdiction

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Exclusivity: Used when parties want to establish exclusive supply arrangements

2. Minimum Purchase Commitments: Include when buyer commits to minimum purchase volumes

3. Storage and Warehousing: Required if supplier provides storage services

4. Insurance Requirements: Detailed insurance obligations beyond standard coverage

5. Intellectual Property: Include when products involve branded items or licensed technology

6. Compliance with Laws: Detailed compliance obligations for regulated products

7. Environmental Requirements: Include for products with environmental impact or regulations

8. Product Development: Used when parties collaborate on product improvements

9. Marketing and Promotion: Include if supplier has marketing obligations

10. Training and Support: Required if supplier provides technical support or training

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products

2. Pricing Schedule: Price list, discount structures, and pricing adjustment mechanisms

3. Service Levels: Detailed performance metrics and service level requirements

4. Quality Standards: Specific quality requirements and testing procedures

5. Delivery Locations: List of approved delivery locations and specific requirements

6. Key Personnel: Contact details for key personnel from both parties

7. Form of Purchase Order: Standard form for placing orders

8. Compliance Certificates: Required regulatory certifications and compliance documents

9. Return Procedures: Detailed procedures for product returns and replacements

10. Reporting Requirements: Templates and procedures for required reporting

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Commencement Date
Confidential Information
Contract Year
Delivery Date
Delivery Location
Delivery Schedule
Delivery Terms
Force Majeure Event
Good Industry Practice
Intellectual Property Rights
Invoice
Minimum Order Quantity
Order
Products
Product Specifications
Purchase Order
Quality Standards
Rejection Notice
Related Entities
Representatives
Service Levels
Shipment
Specifications
Storage Requirements
Supplier Personnel
Supply Period
Term
Territory
Third Party
Unit Price
Warranty Period
Working Hours
Defective Products
Acceptance Criteria
Regulatory Approvals
Payment Terms
Lead Time
Quality Control Procedures
Inspection Period
Compliance Requirements
Material Adverse Change
Purchase Price
Recall
Safety Standards
Technical Documentation
Trade Terms
Indonesian National Standards (SNI)
Local Content Requirements
Clauses
Interpretation
Supply Obligations
Ordering Process
Delivery
Price and Payment
Quality Control
Product Specifications
Warranties
Title and Risk
Packaging and Labeling
Inspection Rights
Acceptance and Rejection
Term and Termination
Force Majeure
Confidentiality
Intellectual Property
Indemnification
Insurance
Compliance with Laws
Record Keeping
Audit Rights
Product Liability
Dispute Resolution
Governing Law
Assignment
Subcontracting
Notices
Entire Agreement
Amendment
Waiver
Severability
Relationship of Parties
Local Content Requirements
Export/Import Compliance
Product Safety
Recall Procedures
Storage Requirements
Environmental Compliance
Performance Metrics
Non-Competition
Exclusivity
Language Requirements
Relevant Industries

Manufacturing

Retail

Fast-Moving Consumer Goods (FMCG)

Electronics

Automotive

Pharmaceuticals

Food and Beverage

Textiles

Chemical Industry

Construction Materials

Agriculture

Mining

Industrial Equipment

Consumer Products

Technology Hardware

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Commercial

Quality Assurance

Logistics

Finance

Compliance

Sales

Business Development

Risk Management

International Trade

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contracts Manager

Operations Manager

Purchasing Officer

Quality Assurance Manager

Logistics Manager

Business Development Manager

Sales Director

Compliance Officer

Chief Operating Officer

Import/Export Manager

Vendor Relations Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental principles of contract law, including formation, validity, performance, and termination of contracts
Law No. 7 of 2014 on Trade: Regulates trading activities in Indonesia, including domestic and international trade, licensing requirements, and standards for goods and services
Law No. 8 of 1999 on Consumer Protection: Establishes consumer rights and business obligations, including product quality standards, warranties, and liability provisions
Government Regulation No. 80 of 2019: Regulates e-commerce and digital trading activities, including requirements for online transactions and digital documentation
Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution: Provides framework for dispute resolution mechanisms and enforcement of arbitration awards
Law No. 13 of 2003 on Manpower: Relevant for aspects involving delivery personnel, warehouse workers, and other employment relationships in the supply chain
Government Regulation No. 58 of 2001: Details the supervision and security of trading activities and the quality of goods and services
Law No. 3 of 2014 on Industrial Affairs: Regulates industrial activities and standards for manufactured products
Law No. 20 of 2014 on Standardization and Conformity Assessment: Sets standards for product quality and safety requirements
Bank Indonesia Regulation on National Payment Systems: Governs payment terms and methods in commercial transactions
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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