The Advertising Contract serves as a legally binding agreement under Indonesian law between advertising service providers and their clients, establishing the framework for professional advertising services. This document is essential when engaging in any formal advertising arrangement in Indonesia, whether for traditional media, digital platforms, or integrated marketing campaigns. It incorporates necessary provisions to comply with Indonesian advertising regulations, consumer protection laws, and electronic information requirements. The contract typically includes detailed specifications for creative services, media placement, performance metrics, and payment terms, while ensuring adherence to local advertising ethics and standards. It's particularly important in protecting both parties' interests while maintaining compliance with Indonesian regulatory requirements, including those set forth in the Civil Code (KUHPerdata) and relevant advertising-specific regulations.
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1. Parties: Identification of the advertising agency/service provider and the client, including their complete legal names, registration numbers, and addresses
2. Background: Context of the advertising arrangement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the contract, including technical advertising terminology
4. Scope of Services: Detailed description of advertising services to be provided, including types of advertisements, platforms, and deliverables
5. Term and Timeline: Duration of the contract and key milestone dates for deliverables
6. Payment Terms: Fee structure, payment schedule, and invoicing requirements
7. Approval Process: Procedures for client review and approval of advertising materials
8. Intellectual Property Rights: Ownership and usage rights of creative materials, existing IP, and newly created content
9. Compliance Requirements: Compliance with Indonesian advertising laws, regulations, and ethical standards
10. Confidentiality: Protection of confidential information and trade secrets
11. Representations and Warranties: Parties' assurances regarding their capacity, authority, and service quality
12. Termination: Conditions and procedures for contract termination
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Media Buying Services: Include when the agency is responsible for purchasing advertising space or time on media platforms
2. Performance Metrics: Include when specific KPIs or performance targets are part of the agreement
3. Social Media Management: Include for contracts involving social media advertising and management
4. Third-Party Contractors: Include when subcontractors or third-party service providers will be involved
5. Client Materials: Include when the client will provide specific materials or content for use in advertisements
6. Force Majeure: Include for long-term contracts or when specifically requested by parties
7. Data Protection: Include when personal data processing is involved in advertising activities
8. Competition Restrictions: Include when there are restrictions on working with competing brands
1. Schedule A - Scope of Work: Detailed breakdown of advertising services, deliverables, and specifications
2. Schedule B - Fee Structure: Comprehensive fee breakdown, rate cards, and payment milestones
3. Schedule C - Campaign Timeline: Detailed timeline of advertising campaigns and deliverables
4. Schedule D - Approved Media Platforms: List of approved advertising platforms and media channels
5. Schedule E - Brand Guidelines: Client's branding requirements and guidelines
6. Schedule F - Reporting Templates: Templates for performance reports and campaign analytics
7. Appendix 1 - Service Level Agreement: Specific performance standards and response times
8. Appendix 2 - Compliance Checklist: Checklist of regulatory requirements and advertising standards to be met
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