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Software As A Service Subscription Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the provision and use of software services delivered through a cloud-based subscription model. This document outlines the rights and obligations of both the service provider and subscriber, including service delivery standards, data protection requirements compliant with Indonesian regulations, payment terms, and usage limitations. It incorporates specific provisions required under Indonesian electronic transaction laws and data protection regulations while addressing key aspects of software service delivery, security measures, and service level commitments.

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What is a Software As A Service Subscription Agreement?

The Software As A Service Subscription Agreement serves as the primary contractual framework for cloud-based software service delivery in Indonesia. This document is essential when a service provider offers software applications accessible via the internet on a subscription basis to Indonesian customers. It must comply with Indonesian regulations, particularly Law No. 11 of 2008 on Electronic Information and Transactions, Law No. 27 of 2022 on Personal Data Protection, and related implementing regulations. The agreement covers crucial aspects including service access, data processing, security measures, service levels, and payment terms. It's designed to protect both provider and subscriber interests while ensuring regulatory compliance in the Indonesian digital services market. The document is particularly important given Indonesia's growing digital economy and increased adoption of cloud-based solutions across various business sectors.

What sections should be included in a Software As A Service Subscription Agreement?

1. Parties: Identification of the contracting parties - the SaaS provider and the subscriber

2. Background: Context of the agreement and brief description of the service being provided

3. Definitions: Definitions of key terms used throughout the agreement

4. Service Provision: Description of the SaaS services, access rights, and service delivery terms

5. Subscription Terms: Duration, renewal, and termination conditions of the subscription

6. Fees and Payment: Pricing, payment terms, billing cycles, and payment methods

7. User Access and Security: User account management, access controls, and security responsibilities

8. Data Protection and Privacy: Compliance with Indonesian data protection laws, data handling, and privacy measures

9. Service Levels: Service availability, performance standards, and support commitments

10. Intellectual Property Rights: Ownership of IP, license terms, and usage restrictions

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Disclaimers: Service warranties and limitations of liability

13. Indemnification: Mutual indemnification obligations and procedures

14. Termination: Grounds for termination, termination process, and post-termination obligations

15. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices

What sections are optional to include in a Software As A Service Subscription Agreement?

1. Professional Services: Additional implementation, training, or consulting services if offered

2. Third-Party Integrations: Terms for integration with third-party services or applications

3. Disaster Recovery: Detailed disaster recovery and business continuity provisions for enterprise clients

4. Compliance with Industry Standards: Specific compliance requirements for regulated industries

5. Service Credits: Compensation scheme for service level failures

6. Custom Development: Terms for any custom development or modifications

7. Multi-tenant Infrastructure: Specific provisions for shared infrastructure environments

8. Geographic Restrictions: Specific provisions for data localization and geographic service restrictions

9. Audit Rights: Client rights to audit service provider's compliance and security measures

What schedules should be included in a Software As A Service Subscription Agreement?

1. Service Description Schedule: Detailed technical specifications and features of the SaaS service

2. Service Level Agreement (SLA): Detailed service levels, performance metrics, and remedies

3. Pricing Schedule: Detailed pricing tiers, subscription options, and additional services

4. Data Processing Agreement: Detailed terms for personal data processing in compliance with Indonesian law

5. Security Requirements: Detailed security protocols, measures, and compliance requirements

6. Support Services Schedule: Details of support levels, response times, and escalation procedures

7. Acceptable Use Policy: Rules and restrictions for use of the service

8. Implementation Plan: Timeline and milestones for service implementation if applicable

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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