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Indemnification Contract Template for Indonesia

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Key Requirements PROMPT example:

Indemnification Contract

"I need an Indemnification Contract under Indonesian law for a manufacturing joint venture between my Singapore-based company and an Indonesian partner, with specific focus on environmental liability protection and regulatory compliance risks."

Document background
The Indemnification Contract is a critical risk allocation tool in Indonesian commercial transactions, used to protect parties against specific identified risks and potential losses. This document type is particularly relevant in scenarios involving complex commercial transactions, joint ventures, asset purchases, or service agreements where risk transfer is necessary. The contract must be structured in accordance with Indonesian law, particularly the Civil Code (KUH Perdata) and relevant commercial regulations. It typically includes detailed provisions on the scope of indemnification, claim procedures, and enforcement mechanisms. The document becomes especially important in cross-border transactions where Indonesian language requirements under Law No. 24 of 2009 must be considered. An Indemnification Contract can be either standalone or form part of a larger commercial agreement, but in either case must address specific Indonesian legal requirements regarding contract formation and enforcement.
Suggested Sections

1. Parties: Identification of the Indemnifier and Indemnitee, including their full legal names, registration numbers, and addresses

2. Background: Context of the indemnification agreement, relationship between parties, and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including 'Indemnified Events', 'Losses', 'Claims', and other relevant definitions

4. Scope of Indemnification: Detailed description of what events, losses, or circumstances are covered by the indemnification

5. Indemnification Obligations: Specific obligations of the Indemnifier, including payment terms, timing, and method of compensation

6. Claims Process: Procedures for making claims, including notification requirements, timing, and documentation

7. Limitations and Exclusions: Specific limitations on the indemnification obligation, including caps, time limits, and excluded events

8. Duration: Term of the indemnification obligation and any survival provisions

9. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of forum for dispute resolution

10. Notices: Process and requirements for formal communications between parties

11. General Provisions: Standard contractual provisions including amendments, waivers, and severability

Optional Sections

1. Insurance Requirements: Required when the indemnifier must maintain specific insurance coverage to support the indemnification obligation

2. Security Provisions: Optional section for when additional security (such as bank guarantees or parent company guarantees) is required

3. Third Party Rights: Required when the indemnification extends to affiliated parties or other third parties

4. Subrogation Rights: Optional section detailing the indemnifier's rights to pursue claims against third parties

5. Alternative Dispute Resolution: Optional detailed procedures for mediation or arbitration before court proceedings

6. Language Provisions: Required when contract is bilingual, establishing prevailing language version

7. Regulatory Compliance: Required when indemnification relates to specific regulated industries or activities

Suggested Schedules

1. Schedule 1 - Specific Indemnified Events: Detailed list of specific events, activities, or circumstances covered by the indemnification

2. Schedule 2 - Claim Form Template: Standard form for submitting indemnification claims

3. Schedule 3 - Calculation of Losses: Methodology for calculating indemnifiable losses

4. Schedule 4 - Security Documents: Forms of any required security documents such as bank guarantees

5. Appendix A - Contact Details: Detailed contact information for notices and claims

6. Appendix B - Insurance Requirements: Specific insurance types, coverage amounts, and requirements

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

Relevant legal definitions

































Clauses






























Relevant Industries

Manufacturing

Construction

Mining

Oil and Gas

Financial Services

Technology

Infrastructure

Real Estate

Telecommunications

Healthcare

Transportation and Logistics

Retail and Consumer Goods

Energy

Relevant Teams

Legal

Risk Management

Compliance

Finance

Commercial

Operations

Treasury

Insurance

Corporate Secretariat

Business Development

Project Management

Relevant Roles

Chief Legal Officer

Legal Director

Risk Manager

Compliance Officer

Corporate Secretary

General Counsel

Contract Manager

Chief Financial Officer

Commercial Director

Business Development Manager

Operations Director

Project Manager

Insurance Manager

Treasury 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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