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Short Form Contractor Agreement for Indonesia

Short Form Contractor Agreement Template for Indonesia

This Short Form Contractor Agreement is a concise legal document designed for use in Indonesia, governed by Indonesian law including the Civil Code and relevant labor regulations. It establishes a clear independent contractor relationship between a company and a service provider, covering essential terms such as scope of services, payment terms, contractor status, and basic obligations while remaining streamlined and user-friendly. The agreement includes necessary provisions to comply with Indonesian regulatory requirements while maintaining flexibility for various business contexts and industries.

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What is a Short Form Contractor Agreement?

The Short Form Contractor Agreement serves as a fundamental legal instrument for businesses operating in Indonesia that need to engage independent contractors for specific projects or services. This document is particularly valuable when a full-length contractor agreement would be unnecessarily complex, while still maintaining compliance with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant labor regulations. It is designed to clearly establish the independent contractor relationship, distinguish it from employment, and include essential terms while remaining concise and practical. The agreement is suitable for various industries and can be easily adapted to specific business needs while ensuring proper protection for both parties and compliance with Indonesian regulatory requirements.

What sections should be included in a Short Form Contractor Agreement?

1. Parties: Identification of the company and the contractor, including their full legal names, addresses, and any registration numbers

2. Background: Brief context of the engagement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided by the contractor

5. Term: Duration of the agreement, including start date and end date or renewal provisions

6. Fees and Payment: Payment terms, rates, and invoicing procedures

7. Contractor Status: Clear statement of independent contractor relationship and not employment

8. Contractor Obligations: Key responsibilities and standards of service

9. Company Obligations: Company's responsibilities to the contractor

10. Termination: Circumstances and process for ending the agreement

11. Confidentiality: Protection of confidential information

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

13. Entire Agreement: Standard boilerplate confirming this is the complete agreement between parties

What sections are optional to include in a Short Form Contractor Agreement?

1. Intellectual Property: Include when contractor will create or work with IP assets

2. Non-Compete: Include when contractor will have access to sensitive competitive information

3. Insurance: Include when contractor needs to maintain specific insurance coverage

4. Equipment and Resources: Include when specific provisions about tools and resources are needed

5. Data Protection: Include when contractor will handle personal or sensitive data

6. Force Majeure: Include when services are critical and need force majeure protection

7. Dispute Resolution: Include when specific dispute resolution procedures are desired beyond court jurisdiction

What schedules should be included in a Short Form Contractor Agreement?

1. Schedule 1 - Services Description: Detailed scope of services and deliverables

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

3. Schedule 3 - Key Personnel: List of key contractor personnel if applicable

4. Appendix A - Required Insurance: Insurance requirements and minimum coverage levels 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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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