Document background
The Memorandum of Understanding For Supply of Goods is commonly used in Indonesian business practices as a preliminary step before entering into more detailed supply agreements. It is particularly valuable when parties wish to document their initial understanding while maintaining flexibility to develop their commercial relationship. This document type is suited for both domestic and international trade relationships involving Indonesian entities, and typically includes key commercial principles, quality standards, and basic supply arrangements. It combines elements of Indonesian contract law with practical commercial considerations, while maintaining its generally non-binding nature except for specific provisions such as confidentiality. The document is especially relevant in today's dynamic business environment where supply chain relationships often need to be established quickly while allowing room for future adjustments.
