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General Business Contract for Indonesia

General Business Contract Template for Indonesia

A comprehensive business contract template designed for use in Indonesia, compliant with the Indonesian Civil Code (KUHPerdata) and relevant commercial laws. This document establishes the fundamental terms and conditions for business relationships between parties operating in Indonesia, incorporating mandatory local law requirements including language provisions under Law No. 24 of 2009. The contract framework accommodates various commercial arrangements while ensuring enforceability under Indonesian jurisdiction, featuring both standard and optional provisions that can be tailored to specific business needs.

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General Business Contract

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What is a General Business Contract?

This General Business Contract serves as a foundational legal document for establishing commercial relationships between parties operating in Indonesia. It is designed to comply with Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 24 of 2009 regarding language requirements. The document is suitable for various business transactions and can be customized based on specific commercial needs while maintaining essential legal protections. It includes provisions for key business terms, risk allocation, dispute resolution, and regulatory compliance, making it appropriate for both domestic and international business relationships within Indonesian jurisdiction. The contract's structure allows for easy modification to accommodate different business scenarios while ensuring all mandatory legal requirements are met.

What sections should be included in a General Business Contract?

1. Parties: Identification of the contracting parties, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the parties' intention to enter into the contract

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Scope of Agreement: Clear outline of the subject matter and scope of the business relationship

5. Rights and Obligations: Detailed description of each party's rights and responsibilities under the agreement

6. Term and Duration: Period of the agreement, including commencement date and duration

7. Financial Terms: Payment terms, amounts, currency, and payment methods

8. Representations and Warranties: Statements of fact and promises made by each party

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Termination: Circumstances under which the agreement can be terminated and the consequences

11. Force Majeure: Provisions for unforeseen circumstances preventing performance

12. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

14. Execution: Signature blocks and execution requirements

What sections are optional to include in a General Business Contract?

1. Intellectual Property Rights: Include when the agreement involves creation, licensing, or transfer of intellectual property

2. Insurance: Include when specific insurance coverage is required from either party

3. Performance Guarantees: Include when specific performance standards or service levels need to be maintained

4. Compliance with Laws: Include when specific regulatory compliance requirements need to be highlighted

5. Data Protection: Include when personal data processing is involved

6. Anti-Corruption: Include when dealing with government entities or high-risk industries

7. Change Control: Include when the scope of work may need to be modified during the term

8. Assignment and Subcontracting: Include when rights to transfer obligations or subcontract need to be specifically addressed

9. Employee Protection: Include when staff transfers or employment matters are relevant

10. Environmental Compliance: Include when environmental impacts need to be addressed

What schedules should be included in a General Business Contract?

1. Schedule 1 - Service Specifications: Detailed description of services or deliverables

2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of prices, payment schedules, and calculation methods

3. Schedule 3 - Key Personnel: List of key personnel from both parties responsible for contract implementation

4. Schedule 4 - Performance Metrics: Specific performance indicators and measurement criteria

5. Schedule 5 - Technical Requirements: Technical specifications or requirements

6. Appendix A - Required Forms: Standard forms to be used during contract implementation

7. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements

8. Appendix C - Contact Details: Contact information for key personnel and authorized representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Manufacturing

Trade and Commerce

Technology and Software

Professional Services

Construction

Retail

Agriculture

Mining and Resources

Financial Services

Healthcare

Education

Logistics and Transportation

Hospitality and Tourism

Energy

Telecommunications

Relevant Teams

Legal

Operations

Finance

Procurement

Commercial

Risk and Compliance

Business Development

Project Management

Account Management

Corporate Affairs

Relevant Roles

Chief Executive Officer

Managing Director

Chief Legal Officer

Legal Counsel

Contract Manager

Business Development Manager

Operations Director

Chief Financial Officer

Procurement Manager

Commercial Director

Risk Manager

Compliance Officer

General Manager

Project Manager

Account Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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