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The Placement Services Agreement is a crucial document used in Indonesia when companies engage professional recruitment services for their hiring needs. This agreement, governed by Indonesian law including Law No. 13 of 2003 on Manpower and related regulations, establishes the formal relationship between placement agencies and their client companies. It details essential elements such as service scope, fees, guarantees, and compliance requirements while ensuring adherence to local labor laws and regulations. The document is particularly important in the Indonesian context where specific regulatory requirements govern employment services, worker protection, and business operations. It serves as both a commercial and compliance tool, protecting the interests of all parties while facilitating professional recruitment services.

1. Parties: Identification of the placement service provider and the client company, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the placement agency's licensing status and the client's need for placement services

3. Definitions: Key terms used throughout the agreement, including 'Candidates', 'Placement Services', 'Placement Fee', etc.

4. Scope of Services: Detailed description of placement services to be provided, including recruitment, screening, and candidate presentation processes

5. Obligations of the Placement Agency: Comprehensive list of the agency's responsibilities, including compliance with Indonesian labor laws and professional standards

6. Client's Obligations: Client's responsibilities, including providing accurate job descriptions, timely feedback, and maintaining appropriate working conditions

7. Fees and Payment Terms: Structure of placement fees, payment schedules, and any additional charges

8. Guarantee Period: Terms of replacement guarantee for placed candidates who leave within a specified period

9. Confidentiality: Provisions for protecting confidential information of all parties, including candidate data

10. Data Protection: Compliance with Indonesian data protection laws and handling of personal information

11. Term and Termination: Duration of the agreement and conditions for termination

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

14. General Provisions: Standard legal provisions including notices, amendments, and severability