Service Of Work Contract Template for Indonesia
Generate a bespoke document
What is a Service Of Work Contract?
The Service of Work Contract (Perjanjian Jasa Kerja) is a fundamental legal instrument in Indonesian business practice, used when engaging external service providers or contractors for specific projects or ongoing services. This document is essential when organizations need to formalize service arrangements while complying with Indonesian legal requirements, particularly the Civil Code (KUHPerdata) and Manpower Law. It's commonly used for both corporate and individual service providers, providing a structured framework for service delivery, payment terms, and performance standards. The contract helps protect both parties' interests by clearly defining responsibilities, deliverables, and dispute resolution mechanisms while ensuring compliance with local labor and tax regulations. This document type is particularly important in Indonesia's business environment, where clear documentation of service relationships is crucial for legal and regulatory compliance.
About the Service Of Work Contract
A Service Of Work Contract is a crucial legal document that governs the relationship between service providers and clients in Indonesia. Whether you're hiring a consultant, engaging a contractor, or outsourcing specific services, this contract ensures your arrangement complies with Indonesian law while protecting both parties' interests.
When do you need this document?
You need a Service Of Work Contract whenever you engage external service providers for project-based or ongoing work. This includes hiring IT consultants for system development, engaging marketing agencies for campaign management, contracting maintenance services for equipment, or securing professional services like legal or accounting support. The contract is essential when working with both individual contractors and corporate service providers, ensuring clear expectations and legal compliance from the outset.
Key legal considerations
Your contract must clearly distinguish between service agreements and employment relationships to avoid unintended labor law obligations under Law No. 13 of 2003. Include specific deliverables, performance metrics, and payment terms aligned with Government Regulation No. 78 of 2015 on wages and remuneration. Address intellectual property rights, confidentiality requirements, and liability limitations to protect your business interests. Incorporate dispute resolution clauses specifying Indonesian jurisdiction and applicable law. Ensure tax compliance provisions are included, referencing Law No. 36 of 2008 on Income Tax, particularly for withholding tax obligations on service payments.
Legal requirements in Indonesia
Indonesian law requires service contracts to comply with the Civil Code Articles 1313-1351 for contract validity and formation. Your agreement must be written in clear terms, include proper party identification with complete legal names and addresses, and specify the scope of services in detail. For foreign service providers, ensure compliance with investment regulations and work permit requirements. Include social security considerations under Law No. 24 of 2011, particularly if the arrangement resembles employment. The contract should address currency provisions for international payments and comply with Bank Indonesia regulations for foreign exchange transactions. Ensure proper contract registration if required by local authorities, and maintain documentation for tax reporting purposes.
GOVERNING LAW
Applicable law
This Service Of Work Contract is drafted to comply with Indonesia law. Key legislation includes:
Law No. 13 of 2003 on Manpower: The main employment law in Indonesia governing work relationships, including provisions on work agreements, rights and obligations of parties, and working conditions.
Government Regulation No. 78 of 2015: Regulations on wages and remuneration, including minimum wage requirements and payment methods for service contracts.
Law No. 24 of 2011 on Social Security Agency: Regulations regarding social security obligations and benefits for workers, including contract workers.
Law No. 36 of 2008 on Income Tax: Tax regulations relevant to service contracts, including provisions on service tax and withholding obligations.
Minister of Manpower Regulation No. 100 of 2004: Specific regulations on fixed-term employment agreements, including provisions relevant to service contracts.
Law No. 2 of 2004: Law on Industrial Relations Dispute Settlement, providing framework for resolving disputes in work relationships.
Government Regulation No. 50 of 2012: Regulation on Implementation of Occupational Safety and Health Management Systems, relevant for service contracts involving physical work.
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it