The Service Contract Company document is essential for businesses operating in Indonesia that engage in service-based relationships with other companies. This contract type is specifically designed to comply with Indonesian legal requirements while providing a robust framework for business-to-business service arrangements. It is commonly used when one company needs to formally engage another for professional services, consulting, maintenance, IT support, or other business services. The document includes crucial elements required under Indonesian law such as compliance with Law No. 13 of 2003 on Manpower to avoid misclassification of employment relationships, adherence to Law No. 40 of 2007 on Limited Liability Companies for corporate authority, and consideration of relevant tax regulations. The agreement is structured to protect both parties' interests while ensuring clarity in service delivery, payment terms, and performance standards.
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1. Parties: Identification of the service provider and service recipient companies, including their full legal names, company registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of the companies, and their intention to enter into a service arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the services to be provided, including specific deliverables and service standards
5. Term and Commencement: Duration of the agreement and conditions for commencement
6. Payment Terms: Fee structure, payment schedule, invoicing requirements, and tax considerations
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Service Recipient's Obligations: Key responsibilities and commitments of the service recipient
9. Representations and Warranties: Standard warranties from both parties regarding capacity, authority, and ability to perform
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Intellectual Property: Ownership and usage rights of intellectual property
12. Liability and Indemnification: Allocation of risks and responsibilities for damages
13. Termination: Circumstances under which the agreement can be terminated and the consequences
14. Dispute Resolution: Process for resolving disputes under Indonesian law
15. Governing Law: Specification of Indonesian law as governing law
16. General Provisions: Standard boilerplate clauses including notices, amendment process, and severability
17. Execution: Signature blocks and execution formalities
1. Service Levels: Detailed service level agreements (SLAs) - include when specific performance metrics are required
2. Compliance with Regulations: Specific regulatory compliance requirements - include for regulated industries
3. Insurance: Insurance requirements - include for high-risk services or when required by industry standards
4. Data Protection: Data handling and protection requirements - include when personal or sensitive data is involved
5. Force Majeure: Force majeure provisions - include when services are susceptible to external disruptions
6. Anti-Corruption: Anti-corruption and compliance provisions - include when dealing with government entities or high-risk sectors
7. Environmental Compliance: Environmental standards and compliance - include for services with environmental impact
8. Transition Services: Transition and handover provisions - include for complex or critical services
9. Subcontracting: Rules regarding subcontracting - include when subcontracting is likely or needs to be restricted
1. Schedule 1 - Service Specifications: Detailed technical specifications of the services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Service Levels and KPIs: Specific performance metrics and measurement criteria
4. Schedule 4 - Contact Details: Key personnel and contact information for both parties
5. Schedule 5 - Required Documentation: List of documents, permits, and certifications required
6. Schedule 6 - Operational Procedures: Detailed operational procedures and protocols
7. Appendix A - Form of Reports: Templates for required reports and documentation
8. Appendix B - Change Request Form: Standard form for requesting changes to services or terms
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