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An Accountability Agreement sets clear expectations between Indonesian organizations and their employees about roles, responsibilities, and performance standards. It's a formal commitment that spells out who's responsible for what, how success will be measured, and what consequences follow both good and poor performance.

Used widely in Indonesian government agencies and corporations, these agreements help prevent confusion and conflicts by documenting mutual obligations under Indonesia's Manpower Law No. 13/2003. They protect both employers and staff by creating transparency around job duties, targets, and evaluation criteria, while establishing a framework for professional growth and accountability.

Use an Accountability Agreement when starting new projects or roles that need crystal-clear performance tracking in Indonesian organizations. It's especially valuable for senior positions, complex team structures, or when managing remote workers under Ministry of Manpower regulations.

The agreement becomes essential during organizational changes, departmental restructuring, or when implementing new compliance programs. Indonesian companies often introduce these agreements during annual planning cycles, when establishing new divisions, or after performance reviews reveal gaps in role clarity. They're particularly important for positions handling sensitive data or financial responsibilities.

• Basic Performance Accountability: Outlines core job duties and metrics, commonly used in Indonesian private companies for standard roles and regular performance reviews
• Project-Based Agreement: Details specific deliverables and timelines for temporary assignments or special initiatives, with clear milestones and success criteria
• Executive Level Agreement: Comprehensive version for senior management, incorporating strategic objectives, leadership responsibilities, and governance requirements
• Departmental Agreement: Focuses on team-wide accountability, setting collective targets and individual contributions within Indonesian organizational structures

• Human Resources Directors: Lead the drafting process and ensure alignment with Indonesian labor laws and company policies
• Department Managers: Help define specific performance metrics and responsibilities for their team members
• Employees: Review, negotiate, and commit to the outlined responsibilities and performance standards
• Legal Counsel: Review agreements for compliance with Indonesian employment regulations and corporate governance requirements
• Company Directors: Approve high-level accountability agreements and ensure alignment with organizational objectives

• Role Details: Gather complete job descriptions, key responsibilities, and specific performance metrics
• Legal Framework: Review Indonesian labor laws and company policies to ensure compliance
• Success Metrics: Define clear, measurable performance indicators and evaluation timelines
• Stakeholder Input: Collect feedback from department heads and HR on role expectations
• Documentation: Compile relevant company policies, reporting structures, and organizational charts
• Review Process: Outline how performance will be monitored and evaluated against agreed standards

• Party Information: Full names, positions, and organizational roles of all involved parties
• Scope Definition: Clear outline of responsibilities, duties, and performance expectations
• Performance Metrics: Specific, measurable targets aligned with Indonesian labor standards
• Evaluation Process: Detailed review procedures and assessment timeline
• Consequences: Clear outcomes for both meeting and failing to meet agreed standards
• Duration Terms: Agreement period and conditions for renewal or termination
• Signatures: Dated signatures of all parties, with company stamp if applicable

While both documents set expectations, an Accountability Agreement differs significantly from an Agency Agreement in several key ways. An Accountability Agreement focuses on internal performance standards and measurable outcomes within an organization, while an Agency Agreement establishes a business relationship between separate entities for representation or service delivery.

• Scope of Authority: Agency Agreements grant specific powers to act on behalf of another party, while Accountability Agreements define internal responsibilities and success metrics
• Legal Relationship: Agency Agreements create principal-agent relationships under Indonesian Commercial Code, while Accountability Agreements operate within existing employment relationships
• Duration and Flexibility: Agency Agreements typically have fixed terms with specific termination clauses, while Accountability Agreements often align with performance review cycles and can be adjusted more readily
• Performance Metrics: Accountability Agreements focus on detailed internal KPIs, while Agency Agreements emphasize duties, commission structures, and market representation terms