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The Term Service Agreement is a fundamental commercial contract used in Indonesian business transactions to establish a formal relationship between service providers and recipients. This document is essential when parties intend to enter into a medium to long-term service arrangement where one party provides specific services to another on an ongoing basis. The agreement must comply with Indonesian law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant sector-specific regulations. It's commonly used in various business contexts, from IT services to professional consulting, and must include bilingual provisions when involving foreign parties as per Law No. 24 of 2009. The document typically outlines detailed service specifications, performance standards, payment terms, and risk allocation between parties, while incorporating necessary protections for both service provider and recipient.

1. Parties: Identification of the service provider and service recipient, including their legal details and authorized representatives

2. Background: Context of the agreement and brief description of the parties' intention to enter into a service arrangement

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

4. Scope of Services: Detailed description of services to be provided, including service levels and standards

5. Term and Renewal: Duration of the agreement and conditions for renewal or extension

6. Payment Terms: Fees, payment schedule, invoicing requirements, and payment methods

7. Service Provider Obligations: Key responsibilities and commitments of the service provider

8. Client Obligations: Key responsibilities and commitments of the client

9. Intellectual Property Rights: Ownership and usage rights of any IP created or used in service delivery

10. Confidentiality: Protection and handling of confidential information

11. Termination: Grounds and process for termination, including notice requirements

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Force Majeure: Provisions for handling events beyond parties' reasonable control

14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

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