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Standard Independent Contractor Contract for Indonesia

Standard Independent Contractor Contract Template for Indonesia

This document is a comprehensive independent contractor agreement designed for use in Indonesia, compliant with Indonesian civil law and labor regulations, including Law No. 13 of 2003 on Manpower and related regulations. It establishes a clear independent contractor relationship while addressing key aspects such as scope of services, compensation, intellectual property rights, confidentiality, and tax obligations. The agreement includes provisions specifically tailored to Indonesian legal requirements regarding contractor classification, social security obligations, and tax reporting, while maintaining flexibility to accommodate various industries and service types.

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What is a Standard Independent Contractor Contract?

The Standard Independent Contractor Contract is essential for businesses operating in Indonesia who engage external service providers on a non-employment basis. This document is designed to comply with Indonesian legal requirements, particularly the Indonesian Civil Code and Law No. 13 of 2003 on Manpower, while providing a clear framework for independent contractor relationships. It's suitable for various scenarios, from one-time project engagements to ongoing service arrangements, and includes comprehensive provisions for service scope, payment terms, intellectual property rights, and confidentiality. The agreement helps distinguish contractor relationships from employment relationships, crucial for compliance with Indonesian labor laws, while protecting both parties' interests through clear terms and obligations.

What sections should be included in a Standard Independent Contractor Contract?

1. Parties: Identifies the contracting parties, including full legal names, addresses, and registration numbers if applicable

2. Background: Outlines the context of the agreement and the parties' intention to enter into an independent contractor relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

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

5. Term and Engagement: Specifies the duration of the agreement and nature of engagement

6. Compensation and Payment Terms: Details the fees, payment schedule, expenses, and invoicing procedures

7. Independent Contractor Status: Explicitly establishes the independent nature of the relationship and disclaims any employment relationship

8. Contractor's Obligations: Lists the contractor's responsibilities, standards of work, and compliance requirements

9. Client's Obligations: Outlines the client's responsibilities and commitments

10. Intellectual Property Rights: Addresses ownership and transfer of work product and pre-existing IP

11. Confidentiality: Defines confidential information and obligations to maintain confidentiality

12. Tax and Social Security: Clarifies tax responsibilities and social security obligations under Indonesian law

13. Termination: Specifies grounds and procedures for ending the agreement

14. Post-Termination Obligations: Outlines obligations that survive the end of the agreement

15. General Provisions: Standard legal provisions including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Standard Independent Contractor Contract?

1. Non-Competition: Restricts contractor from competing with the client; include when protecting business interests is crucial

2. Non-Solicitation: Prevents contractor from soliciting client's employees or customers; use when protecting business relationships is important

3. Insurance: Specifies required insurance coverage; include when services involve significant risks or regulatory requirements

4. Equipment and Resources: Details provision of tools and resources; include when there are specific requirements or arrangements

5. Performance Metrics: Establishes KPIs and performance standards; use when specific measurable outcomes are required

6. Compliance with Specific Regulations: Addresses compliance with industry-specific regulations; include for regulated industries

7. Force Majeure: Addresses unforeseeable circumstances; particularly relevant in long-term or high-value contracts

8. Assignment and Subcontracting: Controls ability to transfer rights or subcontract; include when these are potential concerns

What schedules should be included in a Standard Independent Contractor Contract?

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and technical specifications

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

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

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

5. Appendix 1 - Required Documentation: List of required licenses, certificates, or qualifications

6. Appendix 2 - Client Policies: Relevant client policies and procedures that contractor must follow

7. Appendix 3 - Data Protection Requirements: Specific data handling and protection requirements

8. Appendix 4 - Project Timeline: Detailed project schedule and milestones 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

Construction

Creative Industries

Education

Healthcare

Manufacturing

Financial Services

Retail

Media and Entertainment

Software Development

Marketing and Advertising

Engineering

Management Consulting

Research and Development

Relevant Teams

Human Resources

Legal

Procurement

Finance

Operations

Compliance

Project Management Office

Administration

Talent Acquisition

Risk Management

Contract Management

Business Development

Executive Leadership

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Project Manager

Operations Director

Finance Manager

Department Head

Business Unit Manager

Contracts Administrator

Compliance Officer

Talent Acquisition Manager

Chief Financial Officer

General Manager

Managing Director

Chief Operating Officer

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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