Document background
The Master Contract serves as a foundational document for establishing long-term business relationships in Indonesia, providing a comprehensive framework under which parties can conduct repeated transactions without negotiating basic terms each time. This document type is particularly crucial in the Indonesian business context, where relationships often involve both local and international parties, requiring careful consideration of local law requirements such as language provisions under Law No. 24/2009 and specific commercial regulations. The Master Contract typically includes provisions for ordering processes, quality standards, pricing mechanisms, and dispute resolution, while allowing flexibility for specific transactions to be executed through purchase orders or subsidiary agreements. It's designed to accommodate various business models while ensuring compliance with Indonesian regulatory requirements and commercial practices.
