Document background
A Toll Manufacturing Contract is essential when a company wishes to outsource its manufacturing processes to a third-party manufacturer in Indonesia while maintaining ownership of the product specifications and intellectual property. This type of agreement is commonly used when companies seek to leverage local manufacturing capabilities without establishing their own production facilities. The document addresses crucial elements including manufacturing specifications, quality standards, regulatory compliance with Indonesian laws, raw material handling, pricing, delivery terms, and intellectual property protection. It's particularly important in Indonesia's complex regulatory environment, where manufacturing activities must comply with various local laws including industrial licensing, labor regulations, and environmental requirements. The agreement should be structured to ensure clear delineation of responsibilities while maintaining compliance with Indonesian manufacturing and business regulations.
