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A Service Contract is a legally binding agreement between a service provider and a client that details specific services to be delivered, payment terms, and performance standards. In Indonesia, these contracts are governed by the Civil Code (KUHPerdata) and must clearly outline service scope, duration, and the rights and obligations of both parties.

These agreements protect both providers and clients by setting clear expectations, quality benchmarks, and dispute resolution procedures. Indonesian businesses commonly use them for everything from IT support and maintenance to professional consulting and facilities management. The contract becomes valid once both parties sign it and include mandatory elements like service descriptions, compensation details, and termination clauses.

Use a Service Contract when engaging external parties to perform ongoing work or specialized tasks for your organization. This is especially important in Indonesia for services like building maintenance, IT support, consulting, or professional services where you need to establish clear expectations and protect both parties' interests under Indonesian law.

The timing is critical: implement these contracts before any work begins, particularly for high-value services or when dealing with sensitive company information. Indonesian businesses need these agreements to comply with Civil Code requirements, manage service quality, control costs, and create clear accountability frameworks. They're essential when working with new vendors or updating existing service relationships.

• Master Service Agreement: Comprehensive framework for ongoing business relationships, covering multiple services and projects under one umbrella agreement
• Professional Services Contract: Specialized agreement for consulting, advisory, or expert services with detailed deliverables and quality standards
• Work Contract Agreement: Basic service agreement for general labor or task-based work, commonly used for shorter-term projects
• Plumbing Contract: Trade-specific agreement detailing technical specifications and industry standards for maintenance work
• Electronic Contract: Digital version of service agreements, legally valid under Indonesian e-commerce laws with digital signature provisions

• Service Providers: Companies or individuals offering professional services, from IT consultants to maintenance contractors, who must comply with Indonesian business licensing requirements
• Client Organizations: Businesses, government agencies, or institutions receiving services, responsible for defining requirements and monitoring performance
• Legal Teams: In-house counsel or external law firms who draft and review Service Contracts to ensure compliance with Indonesian Civil Code
• Procurement Officers: Company representatives who manage vendor relationships and negotiate contract terms
• Project Managers: Staff who oversee service delivery, track performance metrics, and ensure contract obligations are met

• Service Details: List specific deliverables, timelines, and quality standards expected from the service provider
• Company Information: Gather complete legal names, registration numbers, and addresses of all parties involved
• Payment Terms: Define pricing structure, payment schedule, and any performance-linked bonuses or penalties
• Legal Requirements: Check Indonesian business licensing and regulatory compliance needs for the service type
• Performance Metrics: Establish measurable KPIs and reporting requirements
• Contract Duration: Determine start date, end date, and renewal terms
• Template Selection: Use our platform to generate a legally-sound contract that includes all mandatory elements under Indonesian law

• Party Details: Complete legal names, addresses, and registration numbers of service provider and client
• Service Description: Detailed scope of work, deliverables, and performance standards
• Payment Terms: Clear pricing, payment schedule, and any applicable taxes under Indonesian tax regulations
• Duration Clause: Contract period, renewal terms, and termination conditions
• Confidentiality: Data protection measures complying with Indonesian privacy laws
• Dispute Resolution: Choice of Indonesian law, jurisdiction, and arbitration procedures
• Force Majeure: Provisions for unforeseen circumstances under Indonesian Civil Code
• Signature Block: Space for authorized representatives' signatures and company stamps

A Service Contract differs significantly from an Employment Contract in several key aspects under Indonesian law. While both involve providing services, their legal framework and implications are quite distinct.

• Legal Relationship: Service Contracts establish a client-vendor relationship, while Employment Contracts create an employer-employee relationship with labor law protections
• Duration and Scope: Service Contracts typically focus on specific deliverables or outcomes, while Employment Contracts govern ongoing work relationships with defined roles
• Benefits and Protection: Employment Contracts must include mandatory benefits under Indonesian Labor Law, while Service Contracts focus on service delivery terms without employment benefits
• Control and Management: Service providers maintain independence in how they deliver services, whereas employees must follow company policies and direct supervision
• Tax Treatment: Different tax obligations apply - service providers invoice with VAT, while employees receive salary with income tax withholding