Document background
The Business Agreement serves as a fundamental legal instrument for establishing commercial relationships in Indonesia. This document is essential when parties wish to formalize their business arrangements under Indonesian jurisdiction, whether for supply agreements, service contracts, distribution arrangements, or other commercial relationships. It must comply with the Indonesian Civil Code (KUHPerdata) and relevant business laws, including mandatory language requirements for agreements involving Indonesian entities. The document typically includes comprehensive terms covering business operations, financial arrangements, risk allocation, and dispute resolution mechanisms. It's particularly relevant for both domestic Indonesian transactions and international business relationships where at least one party is Indonesian, requiring careful consideration of cross-border elements while maintaining compliance with local laws.
