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Independent Contractor Retainer Agreement for Indonesia

Independent Contractor Retainer Agreement Template for Indonesia

This document is a comprehensive Independent Contractor Retainer Agreement governed by Indonesian law, designed to establish and regulate a continuing professional relationship between a company and an independent contractor. It complies with Indonesian civil law and labor regulations, particularly the Indonesian Civil Code and Law No. 13 of 2003 on Manpower, while clearly distinguishing the relationship from employment. The agreement covers essential elements including service scope, payment terms, intellectual property rights, confidentiality, and termination provisions, all structured to meet Indonesian legal requirements while protecting both parties' interests.

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What is a Independent Contractor Retainer Agreement?

The Independent Contractor Retainer Agreement is essential for businesses operating in Indonesia that require ongoing professional services from independent contractors while maintaining compliance with local laws. This document is particularly relevant in the context of Indonesia's growing gig economy and professional services sector, where companies need to establish clear, legally compliant relationships with external service providers. The agreement carefully navigates Indonesian labor laws to ensure proper classification of independent contractors, incorporating necessary provisions under the Indonesian Civil Code and Law No. 13 of 2003 on Manpower. It's designed for situations requiring regular, recurring services rather than one-off projects, making it ideal for long-term professional engagements while maintaining the contractor's independent status.

What sections should be included in a Independent Contractor Retainer Agreement?

1. Parties: Identification of the company and the independent contractor, including registration details and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope of Services: Formal appointment clause and detailed description of services to be provided

5. Independent Contractor Status: Clear statement of independent contractor relationship and non-employment status

6. Term and Renewal: Duration of the agreement and any renewal provisions

7. Fees and Payment Terms: Compensation structure, payment schedule, expenses, and invoicing procedures

8. Contractor's Obligations: Key responsibilities, quality standards, and performance requirements

9. Company's Obligations: Support, information, and resources to be provided by the company

10. Intellectual Property Rights: Ownership and rights to work product created during the engagement

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of clients/employees

13. Termination: Grounds for termination, notice requirements, and consequences

14. Indemnification: Mutual indemnification obligations and liability allocation

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

What sections are optional to include in a Independent Contractor Retainer Agreement?

1. Insurance Requirements: Required when contractor needs to maintain specific insurance coverage

2. Data Protection: Required when contractor will handle personal or sensitive data

3. Foreign Worker Provisions: Required when contractor is a foreign national or services are provided cross-border

4. Equipment and Resources: Required when specific provisions about tools and resources need to be detailed

5. Compliance with Specific Regulations: Required when services are in regulated industries (e.g., financial services, healthcare)

6. Force Majeure: Optional but recommended given potential business disruptions

7. Assignment and Subcontracting: Required when need to specifically address or prohibit transfer of rights or subcontracting

8. Dispute Resolution: Optional section detailing specific dispute resolution procedures beyond standard court jurisdiction

What schedules should be included in a Independent Contractor Retainer Agreement?

1. Schedule A - Scope of Services: Detailed description of services, deliverables, and performance metrics

2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule C - Service Levels: Specific performance standards and quality metrics

4. Schedule D - Approved Subcontractors: List of pre-approved subcontractors if applicable

5. Appendix 1 - Required Insurance Coverage: Specific insurance types and coverage amounts required

6. Appendix 2 - Compliance Requirements: Specific regulatory or compliance requirements applicable to the services

7. Appendix 3 - Confidentiality Agreement: Detailed confidentiality terms and requirements

8. Appendix 4 - Data Processing Agreement: Specific terms for handling personal or sensitive data if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions



































Clauses






































Relevant Industries

Technology

Professional Services

Creative Industries

Construction

Education

Healthcare

Financial Services

Manufacturing

Consulting

Digital Media

Marketing and Advertising

Engineering

Research and Development

Information Technology

Telecommunications

Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Administration

Compliance

Risk Management

Project Management

Business Development

Relevant Roles

Legal Counsel

HR Director

Procurement Manager

Project Manager

Operations Director

Chief Financial Officer

Contracts Manager

HR Manager

Business Development Manager

Department Head

General Manager

Chief Executive Officer

Administrative Manager

Compliance Officer

Risk Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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