Service Delivery Agreement Template for Indonesia

The Service Delivery Agreement is a fundamental commercial document used when one party agrees to provide specific services to another under Indonesian law. This agreement type is essential for businesses operating in Indonesia, whether local or international, and must comply with various Indonesian regulations, including the Civil Code (KUHPerdata) and language requirements under Law No. 24 of 2009. The document is particularly important in establishing clear service expectations, performance metrics, and risk allocation between parties. It should address specific Indonesian regulatory requirements, including mandatory provisions for certain service types, local currency regulations, and appropriate dispute resolution mechanisms. The agreement typically includes detailed schedules for service specifications, pricing, and performance metrics, making it suitable for both straightforward and complex service arrangements in the Indonesian market.

1. Parties: Identification of the service provider and service recipient, including their full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' business relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Services', 'Service Levels', 'Deliverables', and other important terms

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

5. Term and Commencement: Duration of the agreement, including start date, end date, and any renewal provisions

6. Service Provider Obligations: Detailed obligations of the service provider, including quality standards, timelines, and compliance requirements

7. Customer Obligations: Responsibilities and obligations of the customer, including provision of necessary information and access

8. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and late payment consequences

9. Service Levels: Performance standards, metrics, and measurement methods for service delivery

10. Intellectual Property Rights: Ownership and usage rights of any IP created or used in service delivery

11. Confidentiality: Protection of confidential information exchanged during service delivery

12. Data Protection: Obligations regarding data handling, privacy, and security measures

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

14. Force Majeure: Provisions for handling events beyond parties' reasonable control

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

16. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment