Document background
The Supply Agreement Contract serves as a fundamental legal instrument for businesses operating in Indonesia that require a structured framework for regular supply arrangements. This document is essential when establishing long-term supply relationships, whether for raw materials, finished goods, or components. It ensures compliance with Indonesian regulations, including the Civil Code (KUHPerdata) and Trade Law No. 7 of 2014, while addressing crucial commercial aspects such as pricing mechanisms, delivery terms, quality standards, and risk allocation. The agreement is particularly important in contexts where regular, recurring supplies are needed, and where parties require clarity on their rights and obligations under Indonesian law. It typically includes detailed specifications, pricing structures, and operational procedures, making it suitable for both domestic and international trade relationships involving Indonesian entities.
