Document background
The Commercial Production Agreement is essential for businesses engaging in manufacturing activities within Indonesia's jurisdiction. This document is typically used when a company (the client) wants to outsource their product manufacturing to a production facility in Indonesia, or when establishing internal manufacturing operations. The agreement comprehensively covers production specifications, quality standards, intellectual property rights, and compliance with Indonesian regulations, including the Civil Code (Kitab Undang-undang Hukum Perdata) and Industry Law (Law No. 3 of 2014). It's particularly relevant given Indonesia's growing role as a manufacturing hub in Southeast Asia and its specific regulatory requirements for industrial operations. The document serves as a crucial tool for protecting both parties' interests while ensuring compliance with local manufacturing, environmental, and labor laws.
