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MSA Agreement for Indonesia

MSA Agreement Template for Indonesia

A Master Services Agreement (MSA) governed by Indonesian law that establishes a comprehensive framework for ongoing service relationships between parties. This agreement complies with Indonesian legal requirements, including the Indonesian Civil Code (KUHPerdata) and relevant sector-specific regulations. It provides a structured approach for managing service delivery, performance standards, commercial terms, and risk allocation while accommodating the execution of specific statements of work. The document includes provisions for both Indonesian language requirements and international business practices, making it suitable for both domestic and cross-border service arrangements.

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What is a MSA Agreement?

The MSA Agreement serves as a foundational document for establishing long-term service relationships in Indonesia, providing a master framework under which specific services can be ordered through statements of work. This document is particularly relevant when parties anticipate an ongoing relationship involving multiple service engagements over time. It incorporates key requirements of Indonesian law, including compliance with the Indonesian Civil Code, language requirements under Law No. 24 of 2009, and relevant sector-specific regulations. The agreement typically includes comprehensive provisions for service delivery, quality standards, pricing mechanisms, intellectual property protection, and dispute resolution, while maintaining flexibility for specific service arrangements through schedules and statements of work. It is structured to accommodate both domestic Indonesian transactions and international service relationships, making it suitable for various business contexts while ensuring regulatory compliance.

What sections should be included in a MSA Agreement?

1. Parties: Identification of the contracting parties with complete legal names, registration numbers, and addresses

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

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including specific Indonesian legal terms

4. Scope of Agreement: Framework for service relationship, process for executing statements of work, and general service principles

5. Service Standards: General quality standards, performance requirements, and service level principles

6. Ordering Process: Procedures for requesting services and executing statements of work under the MSA

7. Fees and Payment: General pricing principles, payment terms, invoicing requirements, and tax considerations

8. Term and Termination: Duration of the MSA, renewal provisions, and termination rights

9. Intellectual Property Rights: Ownership and licensing of IP, including pre-existing IP and newly created materials

10. Confidentiality: Protection of confidential information, usage restrictions, and return/destruction obligations

11. Data Protection: Obligations regarding personal data handling and compliance with Indonesian data protection laws

12. Liability and Indemnification: Limitation of liability, mutual indemnifications, and insurance requirements

13. Force Majeure: Events excusing performance and related procedures

14. Compliance with Laws: Obligations to comply with Indonesian laws, including specific regulatory requirements

15. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction provisions compliant with Indonesian law

16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement provisions

What sections are optional to include in a MSA Agreement?

1. Personnel Requirements: Used when services involve deployment of personnel, including qualifications, training, and compliance with labor laws

2. Equipment and Materials: Include when services require specific equipment or materials to be provided by either party

3. Security Requirements: Add for services involving access to facilities or IT systems

4. Business Continuity: Important for critical services requiring disaster recovery and business continuity planning

5. Environmental Compliance: Include for services with environmental impact or sustainability requirements

6. Import/Export Compliance: Necessary for services involving cross-border movement of goods or technology

7. Anti-Corruption: Detailed anti-corruption provisions for high-risk services or government-related work

8. Parent Company Guarantee: Include when requiring additional financial security from service provider's parent company

What schedules should be included in a MSA Agreement?

1. Schedule 1 - Service Categories: List and description of all potential service categories covered under the MSA

2. Schedule 2 - Rate Card: Standard rates and pricing mechanisms for different service categories

3. Schedule 3 - Service Levels: Detailed service level requirements and measurement metrics

4. Schedule 4 - Standard Operating Procedures: Detailed operational procedures and requirements for service delivery

5. Schedule 5 - Template Statement of Work: Standard template for individual service orders under the MSA

6. Schedule 6 - Key Personnel: Details of key personnel assigned to manage and deliver services

7. Schedule 7 - Technical Requirements: Technical specifications and requirements for service delivery

8. Schedule 8 - Compliance Requirements: Detailed regulatory and compliance requirements specific to services

9. Appendix A - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

10. Appendix B - Security Procedures: Detailed security protocols and requirements

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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