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Software Development Service Agreement Template for Indonesia

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Key Requirements PROMPT example:

Software Development Service Agreement

"I need a Software Development Service Agreement for our Indonesian fintech startup to engage an offshore development team to build our mobile payment app, with development starting in March 2025 and including specific provisions for data security compliance and source code ownership."

Document background
The Software Development Service Agreement is essential for businesses engaging software developers or development companies in Indonesia. It provides a legally binding framework that protects both parties' interests while ensuring compliance with Indonesian regulations, including the Law No. 11 of 2008 on Electronic Information and Transactions and relevant data protection laws. This document is particularly crucial when commissioning custom software development, establishing clear deliverables, timelines, and acceptance criteria. It addresses key aspects such as intellectual property rights, confidentiality, payment terms, and service level expectations, while incorporating specific provisions required under Indonesian law. The agreement should be used whenever engaging external developers or establishing internal development projects where formal terms need to be documented.
Suggested Sections

1. Parties: Identification of the service provider and client, including registration details and authorized representatives

2. Background: Context of the agreement and brief description of the project objectives

3. Definitions: Definitions of technical and legal terms used throughout the agreement

4. Scope of Services: Detailed description of the software development services to be provided

5. Project Timeline and Milestones: Development phases, deadlines, and delivery schedules

6. Payment Terms: Fee structure, payment schedule, and invoicing procedures

7. Intellectual Property Rights: Ownership and licensing of developed software and pre-existing IP

8. Confidentiality: Protection of confidential information and trade secrets

9. Data Protection and Privacy: Compliance with Indonesian data protection laws and data handling procedures

10. Acceptance Testing: Testing procedures, acceptance criteria, and bug classification

11. Warranties and Representations: Quality guarantees and service level commitments

12. Limitation of Liability: Liability caps and exclusions

13. Term and Termination: Duration, renewal, and termination conditions

14. Force Majeure: Provisions for unforeseen circumstances and force majeure events

15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Third-Party Software Integration: Include when the project involves integration with third-party software or APIs

2. Source Code Escrow: Add for critical software where source code needs to be held in escrow

3. Security Requirements: Include for projects with specific security compliance needs

4. Cloud Services and Hosting: Add when the agreement includes hosting or cloud service provisions

5. Training and Knowledge Transfer: Include when training services are part of the scope

6. Maintenance and Support: Add when post-development maintenance is included

7. Service Level Agreement (SLA): Include for projects requiring specific performance metrics and penalties

8. Disaster Recovery: Add for business-critical applications requiring disaster recovery procedures

Suggested Schedules

1. Schedule 1 - Project Specifications: Detailed technical specifications and requirements of the software

2. Schedule 2 - Development Methodology: Description of development approach (e.g., Agile, Waterfall) and procedures

3. Schedule 3 - Acceptance Test Criteria: Detailed acceptance testing procedures and success criteria

4. Schedule 4 - Fee Schedule: Detailed breakdown of fees, payment milestones, and additional costs

5. Schedule 5 - Service Levels: Detailed service level requirements and measurement metrics

6. Schedule 6 - Personnel: Key personnel and roles assigned to the project

7. Appendix A - Technical Environment: Description of development and deployment environment specifications

8. Appendix B - Change Request Template: Standard template for requesting and documenting changes

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 | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses









































Relevant Industries

Information Technology

Banking and Finance

Healthcare

Education

E-commerce

Manufacturing

Retail

Telecommunications

Government and Public Sector

Insurance

Logistics and Transportation

Real Estate

Media and Entertainment

Professional Services

Relevant Teams

Legal

Information Technology

Procurement

Finance

Compliance

Risk Management

Project Management Office

Software Development

Quality Assurance

Information Security

Operations

Business Development

Contract Administration

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Procurement Manager

Contract Manager

Business Development Manager

Chief Information Officer

Technology Consultant

Solutions Architect

Product Owner

Chief Financial Officer

Risk Manager

Compliance Officer

Technical Lead

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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