Document background
A Raw Material Supply Agreement is essential for businesses operating in Indonesia that require consistent supply of materials for their operations. This document is particularly crucial in the Indonesian context due to specific regulatory requirements under Law No. 7 of 2014 on Trade and related regulations. The agreement typically covers critical aspects such as supply commitments, quality standards, pricing mechanisms, and compliance with local regulations. It's commonly used when establishing long-term supply relationships, ensuring security of supply, and managing risk in supply chains. The document must comply with Indonesian Civil Code requirements for contract formation while addressing specific industry standards and environmental regulations. This type of agreement is particularly important given Indonesia's position as both a major producer and consumer of raw materials across various industries.
