The Business Consortium Agreement serves as a fundamental legal framework for organizations seeking to collaborate on large-scale projects or ventures in Indonesia. This document is particularly crucial when multiple entities need to pool their resources, expertise, and capabilities while maintaining their separate legal identities. It's commonly used in major infrastructure projects, resource exploitation, technology development, or other complex business ventures where risk sharing and combined capabilities are essential. The agreement must comply with Indonesian legal requirements, including the Civil Code, Company Law, and investment regulations. It typically includes detailed provisions on governance structure, financial arrangements, operational procedures, and risk allocation, while addressing specific regulatory requirements for different business sectors in Indonesia.
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1. Parties: Identification of all consortium members and their legal details
2. Background: Context of the consortium formation and its general objectives
3. Definitions: Definitions of key terms used throughout the agreement
4. Purpose and Scope: Detailed objectives of the consortium and scope of collaboration
5. Term and Duration: Period of the consortium agreement and renewal provisions
6. Contributions and Resources: Details of what each member will contribute (financial, assets, expertise, etc.)
7. Governance Structure: Management structure, voting rights, and decision-making processes
8. Rights and Obligations: Core responsibilities and rights of each consortium member
9. Financial Arrangements: Cost sharing, profit distribution, and financial management principles
10. Intellectual Property Rights: Ownership and usage rights of IP brought in or created during the consortium
11. Confidentiality: Protection of confidential information and trade secrets
12. Competition and Exclusivity: Non-compete provisions and exclusivity requirements
13. Liability and Indemnification: Risk allocation and liability provisions between members
14. Termination: Conditions for termination and its consequences
15. Dispute Resolution: Process for resolving disputes between consortium members
16. Governing Law: Specification of Indonesian law as governing law and jurisdiction
17. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Insurance: Required when specific insurance coverage needs to be maintained by consortium members
2. Environmental Compliance: Necessary for consortiums operating in environmentally sensitive sectors
3. Labor and Employment: Required when the consortium will have joint employees or shared workforce
4. Foreign Investment Provisions: Needed when consortium includes foreign members
5. Technology Transfer: Important when the consortium involves significant technology sharing or development
6. Local Content Requirements: Necessary for consortiums in sectors with mandatory local content requirements
7. Anti-Corruption Compliance: Additional compliance provisions for high-risk sectors or government contracts
8. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
1. Schedule 1 - Member Contributions: Detailed breakdown of each member's contributions
2. Schedule 2 - Project Scope: Detailed technical specifications and scope of work
3. Schedule 3 - Governance Procedures: Detailed procedures for meetings, voting, and decision-making
4. Schedule 4 - Financial Protocol: Detailed financial procedures, banking arrangements, and accounting principles
5. Schedule 5 - Key Personnel: List of key personnel from each member and their roles
6. Appendix A - Required Licenses: Copies of necessary permits and licenses
7. Appendix B - Insurance Requirements: Detailed insurance requirements and certificates
8. Appendix C - Technical Standards: Applicable technical standards and specifications
9. Appendix D - Compliance Requirements: Detailed regulatory compliance requirements
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