Document background
A Product Supply Contract is a fundamental commercial agreement used to establish and regulate the ongoing supply of products between businesses in Indonesia. This document is essential for companies engaged in regular supply arrangements, whether domestic or international, and must comply with Indonesian law, particularly the Civil Code and Trade Law No. 7 of 2014. The contract typically details product specifications, ordering mechanisms, delivery terms, quality standards, and pricing structures, while ensuring compliance with local regulatory requirements. It's particularly important in Indonesia's growing economy where supply chain relationships often involve both local and international parties, requiring careful consideration of cross-border trading regulations and local business practices. The document serves as a crucial tool for risk management and establishing clear commercial expectations between parties.
