Document background
The Intercompany Service Agreement is essential for Indonesian companies operating within group structures that share resources, expertise, or support functions. This document is particularly relevant in the context of Indonesian business operations where companies need to formalize internal service arrangements while ensuring compliance with local regulations, particularly transfer pricing rules and corporate governance requirements. The agreement is commonly used when one entity provides administrative, technical, management, or operational services to another related entity, and requires careful structuring to address Indonesian tax authority scrutiny, currency control regulations, and sector-specific compliance requirements. It serves as a crucial document for demonstrating arm's length transactions and maintaining proper corporate governance in accordance with Law No. 40 of 2007 on Limited Liability Companies and related regulations.
