Document background
The Project Profit Sharing Agreement is a crucial document for business collaborations in Indonesia, particularly where multiple parties contribute different resources or expertise to a joint project. This agreement type is commonly used when parties wish to collaborate on a specific project without forming a separate legal entity, or as a supplementary agreement to existing joint venture arrangements. The document must comply with Indonesian investment laws, including Law No. 25 of 2007 on Investment and relevant tax regulations. It should be drafted in both Indonesian and English languages to comply with Law No. 24 of 2009. The agreement typically details profit calculation methods, distribution mechanisms, party contributions, management structures, and risk allocation, while ensuring alignment with Indonesian business practices and regulatory requirements.
