Security Subcontractor Agreement Template for Indonesia

When your security business in Indonesia needs to engage additional service providers through subcontracting arrangements, a Security Subcontractor Agreement provides the essential legal framework. This document governs the relationship between main security contractors and their subcontractors, ensuring compliance with Indonesian security regulations while protecting all parties' interests.

When do you need this document?

You need a Security Subcontractor Agreement when your primary security company cannot fulfill all client requirements with existing resources. This commonly occurs during large-scale security operations requiring multiple service providers, expansion into new geographical areas, or when specialized security services exceed your direct capacity. The agreement is also essential when clients demand coverage across multiple locations that require local security expertise or when temporary increased security needs arise during special events or peak periods. Indonesian regulations require clear documentation of subcontracting relationships to maintain regulatory compliance and operational transparency.

Key legal considerations

Your agreement must clearly define the scope of security services, including specific locations, operational hours, and detailed duty descriptions. Personnel requirements are critical, covering licensing, training certifications, and background check procedures that meet Indonesian standards. The document should establish comprehensive reporting structures, outlining how subcontractors communicate with main contractors and ultimately with clients. Risk allocation clauses are essential, defining liability for security breaches, property damage, or personnel misconduct. Payment terms must be explicit, including service rates, invoicing procedures, and performance-based payment conditions. Termination provisions should address both routine contract expiration and immediate termination for cause, including breach of security protocols or regulatory violations.

Legal requirements in Indonesia

Indonesian law requires all security subcontractors to hold valid BUJP (Badan Usaha Jasa Pengamanan) licenses under Chief of Indonesian National Police Regulation No. 24 of 2007. Your agreement must reference coordination requirements with Indonesian National Police as mandated by Law No. 2 of 2002, particularly for reporting serious incidents and maintaining operational transparency. All security personnel must meet Indonesian certification requirements and undergo proper background checks through authorized channels. The Indonesian Civil Code governs contract formation and enforcement, requiring clear terms and lawful consideration. Labor law compliance under Law No. 13 of 2003 is mandatory, including proper employment status classification and worker protection provisions. Social security requirements under Law No. 3 of 1992 must be addressed, ensuring subcontractor personnel receive mandatory insurance coverage. Government Regulation No. 7 of 2012 establishes additional operational requirements that your agreement must incorporate, including service quality standards and regulatory reporting obligations.