Service Agreement Contract Template for Indonesia

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Key Requirements PROMPT example:

Service Agreement Contract

"I need a Service Agreement Contract for my IT consulting company to provide software development and maintenance services to a Jakarta-based manufacturing company, with specific data protection clauses and service level agreements."

Document background
The Service Agreement Contract is designed for use in the Indonesian business context where one party (the Service Provider) agrees to provide specific services to another party (the Service Recipient) under defined terms and conditions. This agreement is essential for businesses operating in Indonesia that need to formalize service relationships while ensuring compliance with local laws, including Law No. 24 of 2009 regarding language requirements, relevant tax regulations, and sector-specific requirements. The document is particularly important given Indonesia's complex regulatory environment and the need to clearly define service relationships to avoid misclassification under employment laws.
Suggested Sections

1. Parties: Identification of the service provider and service recipient with complete legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intention to enter into a service arrangement

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

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

5. Term and Duration: Period of the agreement, including start date and duration

6. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and payment methods

7. Rights and Obligations: Detailed responsibilities and obligations of both service provider and recipient

8. Performance Standards: Quality standards, KPIs, and service levels to be maintained

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Intellectual Property: Ownership and rights to intellectual property created or used during service provision

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

12. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Notices: Method and addresses for formal communications between parties

15. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

Optional Sections

1. Insurance: Insurance requirements when services involve significant risks or regulatory requirements

2. Data Protection: Required when services involve processing of personal or sensitive data

3. Anti-Corruption: Important for high-value contracts or when dealing with government-linked entities

4. Service Level Agreement (SLA): Needed for technical or continuous services with specific performance metrics

5. Subcontracting: Include when service provider may need to engage subcontractors

6. Change Control: Required for long-term or complex services where scope may need adjustment

7. Personnel Requirements: Include when specific qualifications or security clearances are required

8. Compliance with Laws: Detailed compliance obligations for regulated industries or specific sectors

9. Business Continuity: Important for critical services or long-term arrangements

10. Exit Management: Required for complex services requiring transition upon termination

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed technical specifications and scope of services

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and measurement methods

4. Schedule 4 - Personnel: Key personnel, qualifications, and roles if specific individuals are critical

5. Schedule 5 - Equipment and Materials: List of equipment or materials to be provided by either party

6. Schedule 6 - Locations: Service locations and facility requirements if applicable

7. Schedule 7 - Required Insurances: Specific insurance types and coverage amounts

8. Appendix A - Form of Reports: Templates for required service reports and documentation

9. Appendix B - Contact Details: List of key contacts and escalation procedures

10. Appendix C - Change Request Form: Standard form for requesting and documenting changes to services

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

Information Technology

Professional Services

Consulting

Manufacturing

Construction

Healthcare

Education

Transportation and Logistics

Telecommunications

Financial Services

Hospitality

Energy and Resources

Retail and Consumer

Media and Entertainment

Agriculture and Farming

Relevant Teams

Legal

Procurement

Operations

Commercial

Compliance

Business Development

Finance

Risk Management

Project Management

Human Resources

Corporate Affairs

Sales

Customer Service

Quality Assurance

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Director

Commercial Manager

Compliance Officer

Project Manager

Account Manager

Chief Executive Officer

Chief Financial Officer

Legal Director

Risk Manager

Human Resources Director

Industries
Indonesian Civil Code (KUH Perdata): The fundamental law governing contracts in Indonesia, including formation, validity requirements, and general contractual obligations (particularly Articles 1313-1351 regarding agreements and contracts)
Law No. 13 of 2003 on Manpower: Regulates employment relationships and must be considered to ensure the service agreement doesn't create an unintended employment relationship
Law No. 8 of 1999 on Consumer Protection: Applicable if the service agreement involves provision of services to consumers, ensuring fair treatment and protection of consumer rights
Law No. 11 of 2020 on Job Creation (Omnibus Law): Recent comprehensive law affecting business relationships and service provisions in Indonesia, including amendments to labor and business licensing regulations
Law No. 2 of 2014 on Notary: Relevant for determining whether the service agreement requires notarization or specific formal requirements
Law No. 7 of 2014 on Trade: Governs trade in services and related commercial activities in Indonesia
Government Regulation No. 82 of 2012 on Electronic System and Transaction Operations: Applicable if the service agreement involves electronic transactions or digital services
Law No. 42 of 2009 on Value Added Tax: Governs the taxation aspects of service provision, including VAT obligations on services
Law No. 24 of 2009 on National Flag, Language, Emblem and Anthem: Requires agreements involving Indonesian parties to be drafted in Indonesian language (bilingual versions are permitted)
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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