Document background
The Third Party Management Agreement is essential for businesses operating in Indonesia that wish to outsource management functions to specialized service providers. This document is particularly relevant in the context of Indonesian business practices where companies often seek external expertise while ensuring compliance with local regulations. The agreement needs to carefully balance operational flexibility with regulatory compliance, particularly regarding employment law (Law No. 13 of 2003), investment regulations, and mandatory language requirements. It's commonly used when companies require professional management services, during business transformations, or when local expertise is needed to navigate the Indonesian market. The document must address specific Indonesian legal requirements while providing a clear framework for the management relationship, including service scope, performance metrics, fees, and risk allocation.
