Document background
The Non-Compete Contract serves as a crucial legal instrument in Indonesian business relationships, particularly when companies need to protect their intellectual property, trade secrets, customer relationships, and competitive advantage. This document is typically implemented during senior-level hiring or upon promotion to sensitive positions, ensuring that key employees cannot immediately compete against their former employer after leaving the organization. The agreement must be drafted in accordance with Indonesian law, particularly considering Law No. 13 of 2003 on Manpower and the Indonesian Civil Code. While Indonesian law does not specifically regulate non-compete agreements, their enforcement relies on general contract law principles and must demonstrate reasonable scope, duration, and geographic limitations. The document typically includes detailed provisions about restricted activities, compensation, and enforcement mechanisms, all while maintaining fairness and reasonableness under Indonesian legal standards.
