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Long Term Supplier Agreement Template for Indonesia

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Key Requirements PROMPT example:

Long Term Supplier Agreement

"I need a Long Term Supplier Agreement under Indonesian law for a manufacturing relationship where we'll be importing electronic components from a Singapore-based supplier, with monthly deliveries starting from March 2025 and including provisions for quality control and import compliance."

Document background
The Long Term Supplier Agreement is a crucial document for businesses establishing sustained supply relationships in Indonesia. It is particularly relevant when parties intend to create a stable, long-term business relationship with regular supply commitments. The agreement addresses key requirements under Indonesian law, including provisions of the Civil Code (KUHPerdata) and Trade Law No. 7 of 2014, while incorporating necessary elements for foreign investment compliance where applicable. This document type is essential for businesses seeking to establish reliable supply chains, secure consistent product or service delivery, and maintain quality standards over extended periods. It typically includes detailed provisions for pricing mechanisms, quality control, delivery terms, and risk allocation, while ensuring compliance with local regulatory requirements and business practices.
Suggested Sections

1. Parties: Identification and details of the supplier and buyer entities, including registration numbers and authorized representatives

2. Background: Context of the agreement, business relationship overview, and general intent of the parties

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Supply Obligations: Core obligations of the supplier, including quality standards, quantities, and delivery requirements

5. Purchase Obligations: Buyer's commitments, including minimum purchase quantities if applicable

6. Pricing and Payment: Price structure, payment terms, currency, and price adjustment mechanisms

7. Ordering Process: Procedures for placing and accepting orders, lead times, and order modifications

8. Delivery and Acceptance: Delivery terms, inspection rights, acceptance procedures, and rejection processes

9. Quality Requirements: Quality standards, testing procedures, and compliance requirements

10. Warranties: Product warranties, quality guarantees, and warranty claim procedures

11. Term and Termination: Duration of agreement, renewal provisions, and termination rights

12. Confidentiality: Protection of confidential information and trade secrets

13. Liability and Indemnification: Limitation of liability, indemnification obligations, and risk allocation

14. Force Majeure: Events excusing performance and related procedures

15. Dispute Resolution: Dispute resolution mechanisms, governing law, and jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Intellectual Property Rights: Required when the supply involves licensed products or technology transfer

2. Exclusivity: Include when parties agree to exclusive supply or purchase arrangements

3. Performance Metrics: Add when specific KPIs or service levels are crucial to the relationship

4. Insurance Requirements: Include for high-value or high-risk supply arrangements

5. Environmental Compliance: Required for supplies involving environmental considerations or hazardous materials

6. Export Control: Include when products are subject to export/import restrictions

7. Business Continuity: Add for critical supply relationships requiring disaster recovery plans

8. Anti-Corruption Compliance: Include when dealing with government entities or high-risk jurisdictions

9. Data Protection: Required when personal data processing is involved in the supply relationship

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products or services

2. Pricing Schedule: Detailed pricing structure, including volume discounts and price adjustment formulae

3. Service Levels: Specific performance metrics and measurement criteria

4. Quality Control Procedures: Detailed quality control and testing procedures

5. Delivery Locations: List of approved delivery locations and specific delivery requirements

6. Key Personnel: List of key contacts and authorized representatives from both parties

7. Form of Purchase Order: Standard form for placing orders under the agreement

8. Compliance Requirements: Detailed regulatory and compliance requirements

9. Business Continuity Plan: Detailed procedures for managing supply disruptions

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

Technology

Automotive

Electronics

Chemical

Pharmaceuticals

Food and Beverage

Textiles

Mining

Agriculture

Construction

Energy

Retail

Telecommunications

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Compliance

Quality Assurance

Risk Management

Commercial

Business Development

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Chief Financial Officer

Purchasing Officer

Vendor Relations Manager

Quality Assurance Manager

Compliance Officer

Business Development Manager

Risk Manager

General Manager

Chief Operating Officer

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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