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Non Compete Agreement Business To Business Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes restrictions on competitive business activities between two or more corporate entities. This agreement outlines specific limitations on business operations, geographical restrictions, and temporal bounds, all while ensuring compliance with Indonesian competition law, particularly Law No. 5 of 1999 on Prohibition of Monopolistic Practices. The document includes detailed provisions for protecting legitimate business interests, maintaining fair competition, and establishing remedies for potential breaches, while remaining enforceable under Indonesian jurisdiction.

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What is a Non Compete Agreement Business To Business?

The Non-Compete Agreement Business To Business serves as a crucial legal instrument in Indonesian commercial relationships where businesses need to protect their legitimate interests while maintaining fair market competition. This document is typically used during business acquisitions, joint ventures, strategic partnerships, or when companies share sensitive information or technologies. It must carefully balance the protection of business interests with compliance with Indonesian competition law, particularly Law No. 5 of 1999. The agreement specifies restricted activities, geographical limitations, and duration of non-compete obligations, while ensuring that such restrictions remain reasonable and enforceable under Indonesian jurisdiction. It's essential for preventing unfair competition while maintaining market efficiency and protecting legitimate business interests.

What sections should be included in a Non Compete Agreement Business To Business?

1. Parties: Identification of the contracting business entities, including their legal status and registration details under Indonesian law

2. Background: Context of the agreement, business relationship between parties, and legitimate business interests being protected

3. Definitions: Key terms used throughout the agreement, including Competitive Activities, Restricted Territory, Confidential Information, and other relevant definitions

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas covered by the restriction

5. Duration and Territory: Timeframe of the non-compete obligations and geographical scope of restrictions

6. Consideration: The business benefit or compensation provided in exchange for the non-compete obligations

7. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information

8. Reasonableness and Compliance: Statements ensuring compliance with Indonesian competition law and reasonableness of restrictions

9. Remedies and Enforcement: Legal remedies available in case of breach, including injunctive relief and damages

10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for dispute resolution

11. Execution: Formal signing requirements and execution provisions

What sections are optional to include in a Non Compete Agreement Business To Business?

1. Assignment and Succession: Include when there's a need to address transfer of rights or obligations to other entities

2. Exceptions and Permitted Activities: Include when certain competitive activities need to be explicitly allowed

3. Group Company Provisions: Include when the agreement needs to cover affiliated companies or subsidiaries

4. Non-Solicitation: Include when protection against solicitation of employees, customers, or suppliers is needed

5. Severability and Modification: Include when there's a need for court authority to modify overly broad restrictions

6. Survival: Include when certain obligations need to continue after agreement termination

7. Related Agreements: Include when the non-compete is part of a larger transaction or multiple agreements

What schedules should be included in a Non Compete Agreement Business To Business?

1. Schedule A - Restricted Territory: Detailed map or list of geographical areas covered by the non-compete restrictions

2. Schedule B - Restricted Activities: Comprehensive list of specific business activities prohibited under the agreement

3. Schedule C - Affiliated Companies: List of related companies or subsidiaries bound by or protected under the agreement

4. Schedule D - Existing Commitments: List of pre-existing obligations or relationships exempt from the restrictions

5. Appendix 1 - Compliance Checklist: Checklist ensuring compliance with Indonesian competition law requirements

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

Jurisdiction

Indonesia

Cost

Free to use

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