Service Management Contract Template for Indonesia

The Service Management Contract serves as a crucial legal instrument in Indonesian business operations, designed to formalize the relationship between professional service management providers and client organizations. This document type is essential when a company seeks to outsource the management of specific operations, facilities, or services to a specialized provider while maintaining clear accountability and performance standards. The contract must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata), Law No. 13 of 2003 on Manpower, and relevant sector-specific regulations. It typically includes comprehensive provisions for service scope, performance metrics, operational procedures, risk management, and compliance requirements, making it suitable for both domestic and international business arrangements within the Indonesian jurisdiction.

1. Parties: Identification of the service provider and service recipient, including their legal status and registration details as required under Indonesian law

2. Background: Context of the service management arrangement and the parties' intentions

3. Definitions: Detailed definitions of terms used throughout the agreement, including Indonesian legal terms where applicable

4. Scope of Services: Comprehensive description of the services to be provided, including service levels and delivery parameters

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

6. Service Provider Obligations: Detailed responsibilities and commitments of the service provider

7. Client Obligations: Responsibilities and commitments of the client, including cooperation requirements

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

9. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

10. Reporting and Communication: Requirements for regular reporting, meetings, and communication protocols

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property Rights: Ownership and usage rights of IP related to the services

13. Limitation of Liability: Scope and limitations of liability for both parties

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Process for resolving disputes, including jurisdiction under Indonesian law

16. Governing Law: Specification of Indonesian law as the governing law