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Management Operating Agreement Template for Indonesia

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Key Requirements PROMPT example:

Management Operating Agreement

"I need a Management Operating Agreement for my boutique hotel in Bali, where we want to bring in an international hotel operator to manage the property starting March 2025, with specific provisions for maintaining local cultural elements and staff training requirements."

Document background
The Management Operating Agreement serves as a critical instrument for businesses in Indonesia seeking to engage professional management expertise while maintaining ownership of their assets. This document type is commonly used when owners wish to benefit from specialized operational knowledge, brand association, or management systems without transferring ownership. The agreement must comply with Indonesian law, including the Civil Code, Investment Law, and relevant sector-specific regulations. It typically includes detailed provisions for operational control, performance standards, fee structures, and risk allocation. The document is particularly relevant in industries requiring specialized management expertise or international standard operations, such as hospitality, healthcare, or manufacturing facilities. The agreement must be drafted in both Indonesian and English languages as per Law No. 24 of 2009, with the Indonesian version prevailing in case of inconsistencies.
Suggested Sections

1. Parties: Identification of the Owner/Company and the Management Operator, including their complete legal details and representatives

2. Background: Context of the agreement, including brief description of the business and purpose of the management arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including specific Indonesian legal and business terms

4. Appointment and Scope: Formal appointment of the operator and detailed scope of management services

5. Term and Renewal: Duration of the agreement, conditions for renewal, and termination provisions

6. Operator's Rights and Obligations: Comprehensive list of operator's responsibilities, authority limits, and operational duties

7. Owner's Rights and Obligations: Owner's responsibilities, including provision of resources and information

8. Fees and Payment Terms: Management fees, performance bonuses, payment schedule, and currency provisions

9. Performance Standards: Required service levels, KPIs, and performance measurement criteria

10. Reporting Requirements: Regular reporting obligations, financial statements, and operational updates

11. Staff and Employment: Management of employees, hiring policies, and compliance with Indonesian labor laws

12. Intellectual Property: Protection and usage rights of intellectual property

13. Confidentiality: Protection of confidential information and trade secrets

14. Termination: Grounds for termination, notice requirements, and consequences

15. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms

16. General Provisions: Standard clauses including force majeure, notices, and amendments

Optional Sections

1. Non-Compete: Restrictions on operator's involvement in competing businesses - include when operator has access to sensitive market information

2. Insurance: Specific insurance requirements - include for high-risk operations or valuable assets

3. Environmental Compliance: Environmental protection obligations - include for industries with environmental impact

4. Asset Management: Specific provisions for managing owner's assets - include when physical assets are part of operations

5. Technology Transfer: Provisions for technical knowledge transfer - include when technology or know-how transfer is part of the arrangement

6. Local Content Requirements: Provisions for local sourcing and employment - include when required by specific industry regulations

7. Crisis Management: Procedures for handling emergencies - include for critical infrastructure or public service operations

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, calculations, and payment terms

3. Schedule 3 - Performance Metrics: Specific KPIs and performance measurement criteria

4. Schedule 4 - Required Reports: List and formats of required operational and financial reports

5. Schedule 5 - Key Personnel: Details of key management positions and minimum qualifications

6. Schedule 6 - Operating Procedures: Standard operating procedures and management protocols

7. Schedule 7 - Assets Register: List of assets under management (if applicable)

8. Appendix A - Power of Attorney: Standard form of power of attorney for operator's representatives

9. Appendix B - Required Licenses: List of mandatory licenses and permits for operations

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

Hospitality and Tourism

Manufacturing

Real Estate and Property Management

Healthcare Facilities

Educational Institutions

Retail Operations

Infrastructure Management

Transportation and Logistics

Mining Operations

Agricultural Operations

Food and Beverage

Entertainment Venues

Relevant Teams

Legal

Operations

Compliance

Finance

Human Resources

Risk Management

Facilities Management

Business Development

Contract Administration

Asset Management

Quality Control

Relevant Roles

Chief Executive Officer

Chief Operating Officer

General Manager

Operations Director

Legal Counsel

Compliance Officer

Facility Manager

Property Manager

Business Development Director

Contract Manager

Risk Manager

Human Resources Director

Financial Controller

Asset Manager

Regional Director

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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