The Advisory Services Agreement is essential for businesses and professionals operating in Indonesia who provide or receive specialized consulting and advisory services. This document is commonly used when engaging external expertise for various business needs, from strategic consulting to technical advisory services. The agreement must comply with Indonesian law, particularly the Civil Code (KUHPer) and Law No. 24 of 2009 regarding language requirements. It typically includes comprehensive details about service scope, deliverables, payment terms, and confidentiality provisions, while addressing specific Indonesian regulatory requirements such as local currency regulations and tax implications. This type of agreement is particularly important in the Indonesian business context, where formal documentation of professional relationships is crucial for legal certainty and regulatory compliance.
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1. Parties: Identification of the service provider and client, including registration details as required by Indonesian law
2. Background: Context of the agreement and general purpose of the advisory services
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the advisory services to be provided
5. Term and Timeline: Duration of the agreement and key milestone dates
6. Fees and Payment Terms: Service fees, payment schedule, and currency specifications in compliance with Indonesian regulations
7. Obligations of the Service Provider: Key responsibilities and commitments of the advisor
8. Obligations of the Client: Key responsibilities and commitments of the client
9. Representations and Warranties: Standard warranties from both parties
10. Confidentiality: Provisions for handling confidential information
11. Intellectual Property: Ownership and usage rights of any IP created during the services
12. Limitation of Liability: Limitations on liability and indemnification provisions
13. Termination: Conditions and process for terminating the agreement
14. Force Majeure: Provisions for unforeseen circumstances preventing performance
15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Compliance with Anti-Corruption Laws: Required when dealing with government-related services or high-risk sectors
2. Data Protection: Required when personal data processing is involved in the services
3. Non-Competition: Optional restriction on advisor's activities with competitors
4. Insurance: Required when services involve significant risks or regulatory requirements
5. Foreign Currency Provisions: Required when payments are made in non-IDR currency
6. Language Requirements: Required when agreement is bilingual (Indonesian and English)
7. Personnel: Required when specific key personnel are essential to the services
8. Subcontracting: Required when advisor may need to engage subcontractors
1. Schedule A - Scope of Services: Detailed description of services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed breakdown of fees, expenses, and payment milestones
3. Schedule C - Key Personnel: List of key personnel assigned to provide the services
4. Schedule D - Service Levels: Performance metrics and service level requirements
5. Schedule E - Client Materials: List of materials and information to be provided by the client
6. Appendix 1 - Form of Invoice: Template for invoices complying with Indonesian tax regulations
7. Appendix 2 - Compliance Certificates: Required compliance and regulatory certificates
8. Appendix 3 - Reports Format: Templates for required report submissions
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