The Third Party Management Agreement is essential for businesses operating in Indonesia that wish to outsource management functions to specialized service providers. This document is particularly relevant in the context of Indonesian business practices where companies often seek external expertise while ensuring compliance with local regulations. The agreement needs to carefully balance operational flexibility with regulatory compliance, particularly regarding employment law (Law No. 13 of 2003), investment regulations, and mandatory language requirements. It's commonly used when companies require professional management services, during business transformations, or when local expertise is needed to navigate the Indonesian market. The document must address specific Indonesian legal requirements while providing a clear framework for the management relationship, including service scope, performance metrics, fees, and risk allocation.
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1. Parties: Identification of the principal company and the third-party management company, including their complete legal details
2. Background: Context of the agreement, business purpose, and brief description of the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and detailed scope of management services to be provided
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Management Services: Detailed description of management services, deliverables, and performance standards
7. Fees and Payment Terms: Management fees, payment schedule, expenses, and invoicing procedures
8. Obligations of the Manager: Specific duties, responsibilities, and obligations of the management company
9. Obligations of the Principal: Responsibilities and obligations of the principal company
10. Reporting and Performance Review: Reporting requirements, KPIs, and performance evaluation procedures
11. Compliance and Regulatory Matters: Compliance with Indonesian laws, regulations, and required permits
12. Representations and Warranties: Standard and specific representations and warranties from both parties
13. Confidentiality: Protection of confidential information and trade secrets
14. Intellectual Property: Ownership and usage rights of intellectual property
15. Liability and Indemnification: Limitation of liability and mutual indemnification provisions
16. Force Majeure: Events constituting force majeure and their consequences
17. Termination: Grounds for termination, notice requirements, and consequences
18. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
19. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
20. Language: Dual language requirements as per Indonesian Law No. 24 of 2009
1. Insurance: Insurance requirements and coverage details - include when specific insurance obligations are necessary
2. Anti-Corruption: Specific anti-corruption and compliance provisions - include for international agreements or when dealing with government entities
3. Data Protection: Detailed data protection and privacy requirements - include when personal or sensitive data processing is involved
4. Environmental Compliance: Environmental standards and compliance - include for industries with environmental impact
5. Employee Matters: Provisions regarding employee transfer or secondment - include when staff transfers are involved
6. Foreign Investment Provisions: Specific provisions related to foreign investment - include when foreign investors are involved
7. Bank Guarantees: Requirements for bank guarantees or performance bonds - include when financial security is required
8. Business Continuity: Business continuity and disaster recovery requirements - include for critical services
9. Change Control: Procedures for managing changes to services - include for complex or long-term agreements
1. Schedule 1 - Services Description: Detailed description of management services and deliverables
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, charges, and payment terms
3. Schedule 3 - Service Levels: Performance metrics, KPIs, and service level requirements
4. Schedule 4 - Required Reports: List and format of required reports and reporting frequencies
5. Schedule 5 - Key Personnel: Details of key management personnel and their roles
6. Schedule 6 - Compliance Requirements: Specific regulatory and compliance requirements
7. Schedule 7 - Handover Plan: Procedures for transition at the end of the agreement
8. Appendix A - Power of Attorney: Format of power of attorney if required for specific actions
9. Appendix B - Required Forms: Standard forms and templates to be used during the agreement
10. Appendix C - Insurance Requirements: Detailed insurance requirements and minimum coverage levels
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