Professional Services Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the provision of professional services between a service provider and a client. This document incorporates essential elements required under Indonesian civil law and regulatory frameworks, including mandatory bilingual requirements under Law No. 24 of 2009. It covers key aspects such as scope of services, payment terms, intellectual property rights, confidentiality obligations, and dispute resolution mechanisms, while ensuring compliance with local professional service regulations and licensing requirements.

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What is a Professional Services Contract?

This Professional Services Contract template is designed for use in the Indonesian market when engaging professional service providers for various business needs. The document is structured to comply with Indonesian legal requirements, including the Civil Code and sector-specific regulations, while accommodating both domestic and international business practices. It provides a framework for defining service scope, deliverables, payment terms, and professional obligations, with particular attention to local regulatory compliance, mandatory language requirements, and professional licensing. The contract is suitable for various professional service arrangements, from consulting and advisory services to technical and specialized professional work, and includes necessary provisions for both local and foreign service providers operating in Indonesia.

What sections should be included in a Professional Services Contract?

1. Parties: Identification of the service provider and client, including registration details and addresses as required by Indonesian law

2. Background: Context of the agreement and brief description of the professional services to be provided

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal and regulatory terms

4. Scope of Services: Detailed description of the professional services to be provided, including deliverables and performance standards

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

6. Fees and Payment: Payment terms, including fee structure, invoicing requirements, and tax considerations under Indonesian law

7. Obligations of Service Provider: Key responsibilities and commitments of the service provider, including compliance with Indonesian professional standards

8. Obligations of Client: Client's responsibilities, including provision of information and access required for service delivery

9. Representations and Warranties: Standard warranties and representations from both parties, including professional qualifications and regulatory compliance

10. Intellectual Property: Ownership and usage rights of intellectual property created during service provision

11. Confidentiality: Protection of confidential information and trade secrets

12. Liability and Indemnification: Limitation of liability and indemnification provisions compliant with Indonesian law

13. Termination: Grounds and procedures for contract termination, including notice requirements

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures

16. General Provisions: Standard boilerplate clauses including notices, amendments, and language requirements under Law No. 24 of 2009

What sections are optional to include in a Professional Services Contract?

1. Regulatory Compliance: Required when services are in regulated industries or require specific licenses under Indonesian law

2. Data Protection: Required when personal data processing is involved in service delivery

3. Anti-Corruption: Recommended when dealing with government entities or high-value contracts

4. Insurance: Required when services involve significant risks or professional liability insurance is standard

5. Non-Competition: Optional restriction on service provider's activities with competitors

6. Assignment and Subcontracting: Required when either party may need to transfer rights or engage subcontractors

7. Change Control: Recommended for complex or long-term service arrangements

8. Service Levels: Required when specific performance metrics need to be maintained

9. Foreign Investment Compliance: Required when service provider is a foreign entity

What schedules should be included in a Professional Services Contract?

1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timelines

2. Schedule 2 - Fee Schedule: Detailed pricing, payment terms, and expenses

3. Schedule 3 - Service Levels: Performance metrics and measurement criteria

4. Schedule 4 - Key Personnel: List of key team members and their roles

5. Schedule 5 - Required Documentation: List of permits, licenses, and certifications required under Indonesian law

6. Schedule 6 - Client Materials and Resources: Resources and information to be provided by the client

7. Appendix A - Form of Invoice: Standard invoice format meeting Indonesian tax requirements

8. Appendix B - Change Request Form: Template for requesting and documenting changes to services

9. Appendix C - Compliance Certificates: Copies of required professional certifications and licenses

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Service Contract

Cost

Free to use

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