Simple Sales Contract Template for Indonesia

A Simple Sales Contract is your essential legal tool for conducting straightforward goods transactions in Indonesia. This document creates a binding agreement between seller and buyer, establishing clear terms that protect both parties while ensuring compliance with Indonesian commercial law. Whether you're selling products as an individual entrepreneur or representing a company, this contract provides the legal framework you need for secure transactions.

When do you need this document?

You need a Simple Sales Contract whenever you're selling tangible goods in Indonesia and want legal protection beyond a basic receipt or invoice. This includes retail sales to consumers, wholesale transactions between businesses, one-time sales of equipment or inventory, and recurring supply agreements with consistent terms. The contract is particularly valuable for higher-value transactions, cross-regional sales, or when dealing with new business partners where trust hasn't been fully established. It's also essential when your transaction involves specific delivery requirements, payment schedules, or warranty provisions that go beyond standard consumer protection laws.

Key legal considerations

Your contract must clearly identify all parties with complete details, including registration numbers for companies and identity card numbers for individuals. The goods description should be specific enough to avoid disputes, including quantity, quality standards, and any relevant specifications. Payment terms must specify the exact amount, currency, payment method, and timeline to comply with Indonesian banking regulations. Include delivery conditions that address risk transfer, shipping responsibilities, and acceptance procedures. Consider warranty clauses carefully, as they must align with Consumer Protection Law No. 8 of 1999 requirements. Force majeure provisions should reference Indonesian legal concepts and local circumstances that might affect contract performance.

Legal requirements in Indonesia

Under the Indonesian Civil Code (KUHPerdata), your sales contract must contain essential elements including consent, legal capacity of parties, specific subject matter, and lawful consideration. Articles 1457-1540 specifically govern sales agreements and require clear identification of goods and pricing. If either party is a company, ensure compliance with Limited Liability Companies Law No. 40 of 2007 regarding authorized signatory requirements. For consumer transactions, your contract must comply with Consumer Protection Law No. 8 of 1999, which mandates certain disclosures and prohibits unfair terms. Electronic or online sales must also consider Government Regulation No. 80 of 2019 on e-commerce. All contracts should be in Bahasa Indonesia for enforceability, though bilingual versions are acceptable if both parties agree.