The Food Contract Manufacturing Agreement is essential for businesses looking to outsource food production in Indonesia. It is particularly relevant when companies want to manufacture food products without investing in their own production facilities, or when expanding production capacity through third-party manufacturers. This agreement must comply with Indonesian regulations, including Law No. 18 of 2012 on Food, BPOM requirements, and Halal certification standards. The document typically includes detailed manufacturing specifications, quality control procedures, regulatory compliance requirements, pricing structures, and risk allocation provisions. It's crucial for protecting both parties' interests while ensuring compliance with local food safety standards and manufacturing regulations. The agreement is commonly used by international food brands entering the Indonesian market or local companies scaling their production through contract manufacturing arrangements.
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1. Parties: Identification of the Contract Manufacturer and the Client Company, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, including the Client's business, the Manufacturer's capabilities, and the purpose of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to food manufacturing
4. Scope of Services: Detailed description of the manufacturing services to be provided, including production requirements and capacity commitments
5. Manufacturing Standards and Compliance: Requirements for compliance with Indonesian food safety regulations, GMP, and quality standards
6. Quality Control and Testing: Procedures for quality control, testing protocols, and acceptance criteria for manufactured products
7. Supply of Materials: Responsibilities for sourcing and supplying raw materials, packaging, and other components
8. Pricing and Payment Terms: Pricing structure, payment terms, invoicing procedures, and cost adjustment mechanisms
9. Intellectual Property Rights: Protection and ownership of recipes, formulations, processes, and other IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Representations and Warranties: Standard warranties regarding capacity, quality, and compliance with regulations
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Term and Termination: Duration of the agreement and circumstances for termination
14. Force Majeure: Provisions for handling unforeseen circumstances affecting performance
15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
1. Halal Certification: Detailed requirements for maintaining Halal certification, used when products must be Halal-certified
2. Export Compliance: Additional requirements for products intended for export markets
3. Sustainability Requirements: Environmental and sustainability obligations, used when relevant to the product or client requirements
4. Exclusivity: Provisions restricting manufacturer from producing similar products for competitors
5. Technology Transfer: Provisions for transfer of manufacturing technology or know-how, used when relevant
6. Minimum Purchase Commitments: Client commitments to minimum order volumes, used in long-term arrangements
7. Storage and Warehousing: Terms for storage of finished products or materials, if required
1. Product Specifications: Detailed technical specifications for each product to be manufactured
2. Quality Standards and Testing Procedures: Specific quality control procedures, testing methods, and acceptance criteria
3. Pricing Schedule: Detailed pricing structure, including volume-based pricing if applicable
4. Manufacturing Process Requirements: Step-by-step manufacturing procedures and requirements
5. Equipment and Facility Requirements: Specifications for manufacturing equipment and facility standards
6. Raw Material Specifications: Detailed specifications for all raw materials and components
7. Packaging Specifications: Requirements for product packaging and labeling
8. Service Level Agreement: Specific performance metrics and service levels to be maintained
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