The Supply and Service Agreement is a fundamental commercial contract used when a business relationship involves both the provision of goods and related services in Indonesia. This document is essential for companies operating under Indonesian jurisdiction who need to establish clear terms for complex supply arrangements that go beyond simple goods procurement. It addresses requirements under Indonesian Civil Code, Trade Law No. 7 of 2014, and relevant sector-specific regulations, while incorporating provisions for quality control, delivery mechanisms, service performance standards, and risk allocation. The agreement is particularly important when dealing with ongoing supply relationships that require technical support, maintenance, or other ancillary services alongside product delivery. It provides comprehensive coverage of both supply chain logistics and service delivery obligations while ensuring compliance with local content requirements and Indonesian business practices.
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1. Parties: Identification of the contracting parties including full legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Supply and Services: Detailed description of goods to be supplied and services to be provided
5. Term and Renewal: Duration of the agreement and renewal provisions
6. Ordering Process: Procedures for placing and accepting orders
7. Delivery and Performance: Terms and conditions for delivery of goods and performance of services
8. Price and Payment: Pricing structure, payment terms, and invoicing procedures
9. Quality Requirements: Quality standards, specifications, and quality control procedures
10. Warranties: Warranties for goods and services provided
11. Compliance with Laws: Obligations to comply with applicable Indonesian laws and regulations
12. Intellectual Property: Rights and obligations regarding intellectual property
13. Confidentiality: Protection and handling of confidential information
14. Liability and Indemnification: Allocation of risks and responsibilities between parties
15. Force Majeure: Provisions for unforeseen circumstances preventing performance
16. Termination: Grounds and procedures for termination
17. Dispute Resolution: Procedures for resolving disputes under Indonesian law
18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Insurance: Required when specific insurance coverage needs to be maintained by either party
2. Performance Security: Include when bank guarantees or performance bonds are required
3. Import/Export Requirements: Necessary for international supply arrangements
4. Environmental Compliance: Required for environmentally sensitive goods or services
5. Data Protection: Include when personal data processing is involved
6. Anti-Corruption: Detailed provisions when dealing with government entities or high-risk sectors
7. Local Content Requirements: Include when subject to Indonesian local content regulations
8. Training and Support: Required when supplier must provide training or ongoing support
9. Transition Services: Include when handover or transition periods are needed
1. Schedule 1 - Goods and Services Specification: Detailed technical specifications of goods and services
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and payment terms
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Key Personnel: List of key personnel responsible for service delivery
5. Schedule 5 - Delivery Locations: List of approved delivery locations and specific requirements
6. Schedule 6 - Quality Control Procedures: Detailed quality control and testing procedures
7. Schedule 7 - Forms and Templates: Standard forms for purchase orders, acceptance certificates, etc.
8. Schedule 8 - Implementation Timeline: Project timeline and key milestones
9. Appendix A - Insurance Requirements: Detailed insurance requirements and minimum coverage
10. Appendix B - Health and Safety Requirements: Specific health and safety procedures and standards
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