The Terms of Business Agreement serves as a foundational document for establishing commercial relationships in Indonesia, setting out the key terms and conditions that govern the provision of services or products between businesses. This document is essential for companies operating in Indonesia that need to formalize their business relationships while ensuring compliance with Indonesian law, including the Civil Code, Consumer Protection Law, and Trade Law. The agreement should be drafted in both Indonesian and English languages to comply with Law No. 24 of 2009, and typically includes provisions for service scope, payment terms, liability limitations, and dispute resolution mechanisms. It is particularly useful for ongoing business relationships where parties need a clear framework for their commercial interactions.
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1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and addresses
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement and their specific meanings
4. Scope of Services: Detailed description of the services or products to be provided under the agreement
5. Fees and Payment Terms: Pricing structure, payment schedules, invoicing procedures, and payment methods
6. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
7. Obligations of the Provider: Specific responsibilities and commitments of the service provider
8. Obligations of the Client: Specific responsibilities and commitments of the client
9. Confidentiality: Provisions regarding the protection and handling of confidential information
10. Intellectual Property Rights: Ownership and usage rights of intellectual property
11. Liability and Indemnification: Limitations of liability and indemnification obligations
12. Force Majeure: Provisions for unforeseen circumstances affecting performance
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Data Protection: Required when personal data processing is involved in the business relationship
2. Service Levels: Include when specific performance metrics and standards need to be maintained
3. Insurance: Required when specific insurance coverage needs to be maintained by either party
4. Compliance with Laws: Include when specific regulatory compliance requirements need to be highlighted
5. Anti-Corruption: Required when dealing with government entities or in highly regulated industries
6. Change Control: Include when the services or products may require modifications during the term
7. Business Continuity: Required for critical services or long-term business relationships
1. Schedule 1 - Service Description: Detailed specifications of services or products to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and pricing structures
3. Schedule 3 - Service Levels: Performance metrics, KPIs, and service level requirements
4. Schedule 4 - Data Processing Terms: Specific terms related to personal data handling and protection
5. Appendix A - Contact Details: Key contact information for both parties
6. Appendix B - Technical Requirements: Technical specifications or requirements for service delivery
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