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Written Agreement for Indonesia

Written Agreement Template for Indonesia

A Written Agreement under Indonesian law is a formal contractual document that establishes legally binding obligations between two or more parties. The document must comply with the Indonesian Civil Code (KUHPer) requirements for valid contracts, including the mandatory use of the Indonesian language when involving Indonesian parties (as per Law No. 24 of 2009). This agreement serves as a comprehensive record of the parties' rights, obligations, and agreed terms, providing a clear framework for their business relationship while ensuring enforceability under Indonesian jurisdiction.

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What is a Written Agreement?

The Written Agreement serves as a fundamental legal instrument in Indonesian business transactions, governed by the Indonesian Civil Code (KUHPer) and related regulations. This document type is essential when parties need to formalize their business relationship with legally binding obligations, whether for commercial transactions, service arrangements, or other business dealings. The agreement must be drafted in Indonesian when involving Indonesian parties, with an optional foreign language translation. It should contain clear terms regarding the parties' rights and obligations, payment terms, termination conditions, and dispute resolution mechanisms. This Written Agreement is particularly important in Indonesia's civil law system, where written documentation is crucial for establishing contractual relationships and ensuring legal certainty.

What sections should be included in a Written Agreement?

1. Parties: Identification of all parties to the agreement, including their legal names, addresses, and company registration details if applicable

2. Background: Context and purpose of the agreement, including any relevant history or relationships between the parties

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

4. Scope of Agreement: Clear description of what is being agreed to, including the main obligations of each party

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. Rights and Obligations: Detailed description of each party's rights and obligations under the agreement

7. Payment Terms: Details of any financial arrangements, including payment amounts, timing, and method

8. Representations and Warranties: Statements of fact and promises made by each party

9. Confidentiality: Obligations regarding the protection of confidential information

10. Governing Law: Specification of Indonesian law as the governing law and jurisdiction

11. Language: Statement on the controlling language version as required by Indonesian Law No. 24 of 2009

12. Notices: Process for formal communications between parties

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Written Agreement?

1. Force Majeure: Provisions dealing with unforeseen circumstances preventing performance, include if contract involves ongoing obligations

2. Intellectual Property: Provisions regarding IP rights and their protection, include if agreement involves IP

3. Insurance: Insurance requirements and obligations, include if relevant to the subject matter

4. Assignment: Rights to transfer the agreement to other parties, include if transfer rights are important

5. Dispute Resolution: Detailed process for resolving disputes, include if specific dispute resolution mechanism desired

6. Data Protection: Provisions regarding personal data handling, include if personal data is involved

7. Compliance with Laws: Specific regulatory compliance obligations, include if heavily regulated activity

8. Change Control: Process for making changes to the agreement or deliverables, include if likely to need modifications

What schedules should be included in a Written Agreement?

1. Schedule 1 - Services/Deliverables: Detailed description of services or deliverables to be provided

2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of pricing, payment schedule, and calculation methods

3. Schedule 3 - Key Personnel: List of key personnel involved in delivering the agreement obligations

4. Schedule 4 - Technical Specifications: Technical requirements or specifications relevant to the agreement

5. Schedule 5 - Service Levels: Performance metrics and service level requirements if applicable

6. Appendix A - Form of Notice: Template for formal notices under the agreement

7. Appendix B - Change Request Form: Template for requesting and documenting changes to the agreement

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

Document Type

Agreement Contract

Cost

Free to use

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