Term Service Contract Template for Indonesia

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Key Requirements PROMPT example:

Term Service Contract

"I need a Term Service Contract under Indonesian law for IT maintenance services, where our Singapore-based company will provide 24/7 technical support and system maintenance to an Indonesian state-owned enterprise starting March 2025, with strict uptime requirements and penalty clauses."

Document background
The Term Service Contract is a fundamental document used to establish and govern fixed-term service relationships between service providers and clients operating in Indonesia. This agreement type is particularly important in the Indonesian business context, where service contracts must comply with specific local regulations, including the Indonesian Civil Code, Law No. 13 of 2003 on Manpower, and Law No. 24 of 2009 regarding language requirements. The document is designed to address both domestic and international service arrangements, incorporating necessary provisions for tax compliance, regulatory requirements, and sector-specific regulations. It is commonly used for ongoing service arrangements where clear deliverables, performance metrics, and term limitations are essential, and includes comprehensive provisions for service delivery, payment terms, performance standards, and dispute resolution mechanisms tailored to the Indonesian legal framework.
Suggested Sections

1. Parties: Identification of the service provider and service recipient, including their legal details and authorized representatives

2. Background: Context of the agreement, relationship between parties, and general purpose of the service contract

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including specific deliverables and expectations

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

6. Service Provider's Obligations: Key responsibilities and commitments of the service provider

7. Client's Obligations: Key responsibilities and commitments of the client

8. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and tax considerations

9. Performance Standards: Quality standards, KPIs, and service level requirements

10. Intellectual Property Rights: Ownership and usage rights of any IP created or used during service provision

11. Confidentiality: Protection and handling of confidential information

12. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Insurance: Required when services involve significant risks or regulatory requirements mandate insurance

2. Force Majeure: Recommended for longer-term contracts or when service delivery could be affected by external events

3. Data Protection: Required when personal data processing is involved in service delivery

4. Compliance with Laws: Important when services are in regulated industries or involve specific compliance requirements

5. Training and Support: Necessary when service includes knowledge transfer or ongoing support

6. Transition Services: Important for complex services requiring handover periods

7. Subcontracting: Required when service provider may need to engage subcontractors

8. Environmental Compliance: Necessary for services with environmental impact

9. Anti-Corruption: Important for compliance with anti-corruption laws and corporate policies

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed technical specifications and scope of services

2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and measurement methodologies

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for service delivery and management

5. Schedule 5 - Required Insurance: Details of insurance types and coverage amounts required

6. Schedule 6 - Form of Reports: Templates and requirements for regular service reports

7. Appendix A - Service Location(s): List of locations where services will be provided

8. Appendix B - Equipment and Materials: List of equipment and materials to be provided by each party

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Professional Services

Manufacturing

Construction

Facilities Management

Healthcare

Education

Telecommunications

Energy

Mining

Transportation

Logistics

Consulting

Maintenance Services

Business Process Outsourcing

Relevant Teams

Legal

Procurement

Operations

Commercial

Compliance

Finance

Risk Management

Business Development

Human Resources

Service Delivery

Account Management

Technical Operations

Supply Chain

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Operations Director

Commercial Manager

Compliance Officer

Project Manager

Business Development Manager

Chief Financial Officer

Risk Manager

General Manager

Service Delivery Manager

Account Manager

Technical Director

HR Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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