The Simple Consulting Agreement serves as a fundamental legal instrument for establishing professional consulting relationships in Indonesia. This document is essential when engaging external expertise while maintaining compliance with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and Law No. 13 of 2003 on Manpower. It clearly distinguishes independent consulting relationships from employment arrangements, incorporating necessary provisions for intellectual property protection, confidentiality, and payment terms. The agreement is particularly valuable for businesses seeking specialized expertise without creating permanent employment relationships, and can be used for both domestic and international consulting arrangements, subject to relevant foreign worker regulations when applicable.
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1. Parties: Identifies the parties to the agreement, including full legal names, addresses, and company registration details
2. Background: Provides context for the agreement and establishes the consultant's qualifications and client's needs
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Scope of Services: Clearly outlines the consulting services to be provided
5. Term and Termination: Specifies the duration of the agreement and conditions for termination
6. Fees and Payment Terms: Details the consulting fees, payment schedule, and reimbursement terms
7. Obligations of the Consultant: Lists the consultant's duties, responsibilities, and performance standards
8. Obligations of the Client: Specifies the client's responsibilities and commitments
9. Confidentiality: Establishes confidentiality obligations and handling of sensitive information
10. Intellectual Property Rights: Addresses ownership and usage rights of work products
11. Relationship of Parties: Clarifies the independent contractor status and non-employment relationship
12. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and outlines dispute resolution procedures
13. General Provisions: Includes standard clauses such as force majeure, notices, and amendments
1. Non-Competition: Restricts consultant from working with competitors (include when protecting market position is crucial)
2. Insurance: Specifies required insurance coverage (include for high-risk or regulated industries)
3. Data Protection: Addresses handling of personal data (include when processing personal information)
4. Foreign Worker Compliance: Details compliance with foreign worker regulations (include when consultant is non-Indonesian)
5. Performance Metrics: Establishes specific KPIs and performance standards (include for results-based engagements)
6. Warranty: Provides specific warranties for services (include for technical or specialized consulting)
7. Assignment and Subcontracting: Controls ability to delegate or transfer obligations (include when delegation is a concern)
1. Schedule A - Scope of Services: Detailed description of consulting services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule C - Key Personnel: List of key consultant personnel assigned to the project
4. Schedule D - Service Levels: Specific performance standards and metrics if applicable
5. Appendix 1 - Required Certifications: Copies of relevant professional certifications or licenses
6. Appendix 2 - Project Timeline: Detailed project schedule and milestone dates
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