The Supplier Level Agreement is a critical document used to establish and manage supplier relationships in the Indonesian market. It is particularly important when companies need to ensure consistent quality, service levels, and performance standards from their suppliers. This document type is commonly used across various industries operating in Indonesia, where it must comply with local regulations including the Indonesian Civil Code, Trade Law No. 7 of 2014, and relevant sector-specific regulations. The agreement typically details performance metrics, quality standards, delivery requirements, pricing structures, and compliance obligations, while incorporating Indonesian legal requirements for contract formation and enforcement. A Supplier Level Agreement is essential for businesses requiring structured supplier management, especially in cases involving regular supply of goods or services, critical business operations, or high-value transactions.
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1. Parties: Identification and details of the contracting parties, including registration numbers and authorized representatives
2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Supply: Detailed description of goods/services to be provided, including specifications and standards
5. Term and Renewal: Duration of the agreement, including commencement date and renewal provisions
6. Pricing and Payment Terms: Pricing structure, payment schedules, invoicing requirements, and payment methods
7. Service Levels: Performance metrics, quality standards, and measurement criteria
8. Delivery Terms: Delivery requirements, timelines, and logistics arrangements
9. Quality Control: Quality assurance processes, inspection rights, and acceptance criteria
10. Warranties and Representations: Supplier warranties regarding goods/services and general business operations
11. Compliance: Obligations to comply with laws, regulations, and industry standards
12. Confidentiality: Protection and handling of confidential information
13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
14. Termination: Grounds for termination, notice requirements, and consequences of termination
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Insurance: Insurance requirements when supply involves significant risks or high-value goods
2. Intellectual Property: IP rights and protections when supply involves technology, software, or creative works
3. Data Protection: Data handling and privacy requirements when personal or sensitive data is processed
4. Business Continuity: Disaster recovery and business continuity requirements for critical suppliers
5. Environmental Compliance: Environmental standards and requirements for suppliers in environmentally sensitive industries
6. Anti-Corruption: Additional anti-corruption provisions for high-risk jurisdictions or government-related contracts
7. Security Requirements: Security protocols when supplier has access to sensitive facilities or systems
8. Training and Support: Training and support obligations for complex products or services
9. Subcontracting: Rules and restrictions regarding use of subcontractors
10. Local Content Requirements: Local content obligations for contracts subject to Indonesian local content regulations
1. Schedule 1 - Pricing Schedule: Detailed pricing breakdown, including unit prices, volume discounts, and price adjustment mechanisms
2. Schedule 2 - Service Level Requirements: Detailed service levels, KPIs, and measurement methodologies
3. Schedule 3 - Technical Specifications: Detailed technical requirements and specifications for goods/services
4. Schedule 4 - Delivery Locations: List of delivery locations and specific requirements for each location
5. Schedule 5 - Key Personnel: Details of key personnel from both parties responsible for contract management
6. Schedule 6 - Quality Standards: Specific quality standards, testing procedures, and acceptance criteria
7. Schedule 7 - Reporting Requirements: Templates and requirements for regular performance reporting
8. Appendix A - Contact Details: Contact information for key personnel and authorized representatives
9. Appendix B - Forms and Templates: Standard forms for purchase orders, change requests, and other operational documents
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