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The Vendor Quality Agreement is a critical document used when companies need to establish formal quality control mechanisms with their suppliers in Indonesia. This agreement becomes necessary when organizations require consistent quality standards across their supply chain, particularly in regulated industries or when dealing with critical components/services. The document integrates Indonesian regulatory requirements, including compliance with Law No. 20 of 2014 and relevant industry standards, while establishing clear procedures for quality management, testing, documentation, and non-conformance handling. It is particularly important in scenarios where product quality directly impacts safety, regulatory compliance, or customer satisfaction. The agreement typically includes detailed quality specifications, testing procedures, acceptance criteria, and clearly defined responsibilities for both parties, serving as a cornerstone document for vendor quality management.

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the quality agreement

3. Definitions: Detailed definitions of technical terms, quality-related terminology, and other key terms used throughout the agreement

4. Scope and Purpose: Detailed description of products/services covered and the specific quality objectives of the agreement

5. Quality Management System Requirements: Core quality system requirements, including compliance with ISO standards and Indonesian regulations

6. Roles and Responsibilities: Specific duties of each party in maintaining quality standards and managing quality-related issues

7. Quality Control Procedures: Detailed procedures for quality control, testing, and verification of products/services

8. Documentation and Record Keeping: Requirements for maintaining quality records, certificates, and other relevant documentation

9. Non-conformance and Corrective Actions: Procedures for handling quality issues, defects, and implementing corrective measures

10. Audit and Inspection Rights: Terms for quality audits, inspections, and access rights for quality verification

11. Term and Termination: Duration of the agreement and conditions for termination related to quality issues

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and procedures for resolving quality-related disputes