The Sponsorship Contract serves as a vital legal instrument in Indonesian commercial relationships, establishing the terms and conditions under which one party (the sponsor) provides financial or other support to another party (the sponsee) in exchange for promotional rights and benefits. This document is essential when companies or organizations wish to enter into formal sponsorship arrangements in Indonesia, whether for events, sports teams, cultural activities, or other promotional opportunities. The agreement must comply with Indonesian law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant regulations concerning advertising, intellectual property, and sector-specific requirements. It typically includes detailed provisions on payment terms, brand usage rights, performance obligations, termination rights, and dispute resolution mechanisms, all structured to provide clarity and protection for both parties while ensuring enforceability under Indonesian jurisdiction.
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1. Parties: Identification of the sponsor and sponsee, including full legal names, registration numbers, and addresses
2. Background: Context of the sponsorship arrangement, brief description of each party's business, and general purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Sponsorship Rights: Detailed description of the sponsorship rights granted, including usage of marks, advertising placement, and exclusivity provisions
5. Sponsorship Fees and Payment Terms: Financial terms, payment schedule, and method of payment
6. Term and Termination: Duration of the agreement, renewal options, and circumstances for early termination
7. Obligations of the Sponsee: Specific duties and responsibilities of the sponsored party
8. Obligations of the Sponsor: Specific duties and responsibilities of the sponsoring party
9. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP
10. Representations and Warranties: Standard assurances from both parties regarding their capacity and authority
11. Confidentiality: Protection of confidential information shared during the relationship
12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Performance Metrics: Used when sponsorship fees are tied to specific performance indicators or targets
2. Moral Clause: Included when reputation management is particularly important, allowing termination for misconduct
3. Insurance Requirements: Required for sponsorships involving events or activities with potential liability risks
4. Anti-Corruption Compliance: Important for international sponsors or when dealing with government-related entities
5. Force Majeure: Particularly relevant for event sponsorships or long-term arrangements
6. Social Media Rights: When sponsorship includes specific social media obligations and rights
7. Exclusivity Provisions: When sponsor requires category exclusivity or other competitive restrictions
8. Regulatory Compliance: Required for regulated industries like tobacco, alcohol, or financial services
1. Schedule 1 - Sponsorship Benefits: Detailed list of all sponsorship rights, benefits, and deliverables
2. Schedule 2 - Brand Guidelines: Sponsor's brand usage requirements and specifications
3. Schedule 3 - Payment Schedule: Detailed breakdown of payment amounts, dates, and milestones
4. Schedule 4 - Approved Marketing Materials: Pre-approved promotional materials and templates
5. Schedule 5 - Performance Metrics and Reporting Requirements: Specific KPIs and reporting templates if applicable
6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels
7. Appendix A - Sponsor's Marks: Visual representations of sponsor's logos and marks for use
8. Appendix B - Approval Procedures: Step-by-step process for obtaining approvals for sponsor-related materials
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