The Contractor Offer Letter is a crucial document used in Indonesia when engaging independent contractors for specific projects or services. It serves as the initial formal communication of engagement terms while complying with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. This document is typically used when a company needs to engage professional services on a non-employment basis, requiring clear differentiation from regular employment relationships. The letter includes essential terms such as scope of work, compensation, and duration, while addressing specific Indonesian regulatory requirements regarding contractor classifications, social security obligations, and tax considerations. It forms the foundation for the contractor relationship and often precedes more detailed service agreements.
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1. Letter Header: Company letterhead, date, and reference number
2. Addressee Details: Contractor's full name and address
3. Opening Statement: Formal offer of engagement as an independent contractor
4. Role and Position: Clear statement of the contractor role and position title
5. Engagement Terms: Key terms including start date, duration, and nature of the engagement
6. Scope of Services: Brief overview of the services to be provided
7. Compensation: Fee structure, payment terms, and schedule
8. Working Arrangements: Location, hours, and reporting relationships
9. Independent Contractor Status: Clear statement of independent contractor relationship
10. Confidentiality: Basic confidentiality obligations
11. Acceptance Instructions: How to accept the offer and deadline for acceptance
12. Closing: Signature block for company representative
1. Equipment and Resources: Include when company will provide specific tools or resources
2. Travel Requirements: Include when position requires travel and related compensation
3. Visa and Work Permit: Include for foreign contractors requiring work authorization
4. Project Milestones: Include when engagement is project-based with specific deliverables
5. Insurance Requirements: Include when contractor must maintain specific insurance coverage
6. Training Requirements: Include when specific certifications or training are required
7. Intellectual Property: Include when contractor will create IP during engagement
1. Schedule A - Detailed Scope of Work: Detailed description of services, deliverables, and performance standards
2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and expense policies
3. Schedule C - Required Documentation: List of documents contractor must provide (tax ID, certifications, etc.)
4. Schedule D - Company Policies: Relevant company policies applicable to contractors
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