A Master Supply Agreement is essential for businesses establishing long-term supply relationships in Indonesia. This document type is particularly relevant when parties anticipate ongoing, repeated transactions and need a robust framework to govern their supply relationship. The agreement must comply with Indonesian law requirements, including the Civil Code (KUHPerdata) and trade regulations, while addressing key commercial aspects such as ordering procedures, quality standards, and risk allocation. Given Indonesia's mandatory language requirements, the agreement typically includes provisions for dual-language execution. The document is designed to streamline future transactions by establishing standard terms upfront, reducing negotiation time for individual purchase orders. It's particularly valuable for businesses operating in Indonesia's manufacturing, retail, and resource sectors, where regular supply arrangements are common.
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1. Parties: Identification of the supplier and buyer, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, relationship between parties, and general intent of the supply arrangement
3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation
4. Scope of Agreement: Framework for the supply relationship, including exclusivity provisions if applicable
5. Ordering Process: Procedures for placing, accepting, and modifying purchase orders
6. Delivery and Acceptance: Terms regarding delivery, inspection, acceptance, and rejection of goods
7. Price and Payment: Pricing structure, payment terms, invoicing requirements, and currency provisions
8. Quality Requirements: Quality standards, specifications, and compliance requirements for supplied goods
9. Warranties: Supplier warranties regarding goods, services, and general performance obligations
10. Title and Risk: Transfer of ownership and risk in goods
11. Intellectual Property: IP rights, licenses, and protections
12. Confidentiality: Protection and handling of confidential information
13. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations
14. Term and Termination: Duration of agreement, renewal provisions, and termination rights
15. Force Majeure: Events excusing performance and related procedures
16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
17. General Provisions: Standard boilerplate clauses including notices, assignments, and amendments
18. Language Requirements: Compliance with Indonesian law requiring Bahasa Indonesia version and governing language
1. Vendor Managed Inventory: Used when supplier manages inventory at buyer's location
2. Consignment Arrangements: For agreements involving consignment stock arrangements
3. Service Level Requirements: When specific performance metrics and service levels are required
4. Environmental Compliance: For industries with specific environmental requirements or sustainability goals
5. Insurance Requirements: Detailed insurance obligations beyond standard coverage
6. Import/Export Compliance: For international supply arrangements requiring specific trade compliance
7. Local Content Requirements: When Indonesian local content rules apply to the supply arrangement
8. Technology Transfer: For arrangements involving technology or know-how transfer
9. Anti-Corruption Compliance: Enhanced compliance requirements for high-risk industries or government-related supply
10. Bank Guarantee Requirements: When performance or payment guarantees are required
1. Schedule 1 - Products and Pricing: Detailed list of products, specifications, and pricing structure
2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement criteria
3. Schedule 3 - Technical Specifications: Detailed technical requirements and standards for products
4. Schedule 4 - Quality Requirements: Specific quality standards, testing procedures, and acceptance criteria
5. Schedule 5 - Ordering Procedures: Detailed procedures for order placement, modification, and cancellation
6. Schedule 6 - Delivery Requirements: Specific delivery terms, locations, and procedures
7. Schedule 7 - Contact Details: Key contact persons and escalation matrix
8. Appendix A - Form of Purchase Order: Standard form for purchase orders
9. Appendix B - Form of Bank Guarantee: Standard format for any required bank guarantees
10. Appendix C - Compliance Certificates: Required regulatory or quality compliance certificates
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