Professional Services Retainer Agreement Template for Indonesia

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Key Requirements PROMPT example:

Professional Services Retainer Agreement

"I need a Professional Services Retainer Agreement for my IT consulting firm based in Jakarta, providing cybersecurity services to a major Indonesian bank, with monthly retainer fees and specific data protection requirements."

Document background
The Professional Services Retainer Agreement is designed for use in Indonesia when establishing ongoing professional service relationships where regular access to expertise is required. This document is particularly relevant when clients need consistent access to professional services without executing separate agreements for each engagement. The agreement complies with Indonesian legal requirements, including the Civil Code and Law No. 24 of 2009 regarding language requirements. It typically includes comprehensive terms covering service scope, retainer fees, performance standards, intellectual property rights, and confidentiality provisions. The document is structured to protect both service provider and client interests while maintaining flexibility for various professional service arrangements. It's commonly used by consulting firms, legal practices, accounting firms, and other professional service providers operating in Indonesia who provide ongoing services to their clients.
Suggested Sections

1. Parties: Identification of the service provider and client, including their complete legal names, addresses, and company registration details

2. Background: Context of the agreement, nature of the professional services, and general intent of the parties

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Retainer Fee', 'Service Period', and other relevant terminology

4. Appointment: Formal appointment of the service provider and confirmation of their acceptance

5. Scope of Services: Detailed description of the professional services to be provided under the retainer arrangement

6. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions

7. Retainer Fee and Payment Terms: Amount of retainer fee, payment schedule, invoicing process, and any additional charges

8. Service Provider's Obligations: Key responsibilities, performance standards, and deliverables expected from the service provider

9. Client's Obligations: Client's responsibilities, including providing necessary information and access

10. Intellectual Property Rights: Ownership and rights related to work products and pre-existing materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Representation and Warranties: Standard warranties regarding capacity, authority, and quality of services

13. Liability and Indemnification: Limitation of liability and mutual indemnification provisions

14. Termination: Grounds for termination, notice requirements, and consequences of termination

15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including notices, amendment process, and severability

Optional Sections

1. Non-Competition: Restrictions on service provider's ability to work with competitors, used when services are highly specialized or strategic

2. Insurance: Requirements for professional indemnity and other insurance, important for high-risk professional services

3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term retainer arrangements

4. Data Protection: Specific provisions for handling personal data, required when services involve data processing

5. Anti-Corruption: Compliance with anti-corruption laws, important when dealing with government-related work or regulated industries

6. Currency and Tax Provisions: Detailed tax and currency provisions, necessary for cross-border service arrangements

7. Key Personnel: Identification of key team members, used when specific expertise is crucial to service delivery

8. Service Levels: Specific performance metrics and standards, useful for measurable professional services

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of services covered under the retainer

2. Schedule 2 - Fee Schedule: Detailed fee structure, including retainer calculations and additional service rates

3. Schedule 3 - Service Levels: Performance metrics, response times, and quality standards

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

5. Schedule 5 - Reports and Deliverables: Format and frequency of required reports and deliverables

6. Appendix A - Standard Operating Procedures: Agreed procedures for service delivery and communication

7. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements

8. Appendix C - Form of Invoice: Approved invoice format and required supporting documentation

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

Relevant legal definitions
Clauses
Relevant Industries

Legal Services

Management Consulting

Information Technology

Engineering

Architecture

Accounting and Finance

Human Resources

Marketing and Communications

Environmental Consulting

Healthcare Services

Education and Training

Business Advisory

Research and Development

Project Management

Quality Assurance

Relevant Teams

Legal

Procurement

Finance

Operations

Compliance

Risk Management

Business Development

Project Management

Vendor Management

Contract Administration

Professional Services

Client Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Head of Procurement

Legal Director

Procurement Manager

Contract Manager

Project Manager

Operations Director

Finance Director

Compliance Officer

Risk Manager

Business Development Director

Department Head

Managing Partner

Senior Consultant

Professional Services Director

Client Relationship Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental legal framework for contracts in Indonesia, including formation, validity requirements, and contractual obligations
Law No. 13 of 2003 on Manpower: Governs employment relationships and helps distinguish between employment and independent contractor relationships in professional services agreements
Law No. 2 of 2017 on Construction Services: Relevant if the professional services involve construction or engineering consulting, setting requirements for professional service providers in these sectors
Government Regulation No. 29 of 2016 on Changes in Authorized Capital of Limited Liability Companies: Relevant for understanding the legal requirements if the service provider is a company rather than an individual
Law No. 42 of 2009 on Value Added Tax: Governs the VAT implications of professional services rendered in Indonesia
Law No. 36 of 2008 on Income Tax: Relevant for tax obligations and withholding requirements related to professional service fees
Law No. 24 of 2009 on National Flag, Language, Emblem and Anthem: Requires contracts involving Indonesian parties to be drafted in the Indonesian language or be bilingual
Law No. 25 of 2007 on Investment: Relevant if the professional services agreement involves foreign service providers or investment elements
Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services: Covers business licensing requirements that may be relevant for professional service providers
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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