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A Software Development Agreement is a legal contract between a client and a developer who will create custom software. In Indonesia, these agreements protect both parties by clearly outlining project scope, deliverables, payment terms, and intellectual property rights under the country's Information and Electronic Transaction Law.

The agreement sets firm timelines, quality standards, and testing requirements while addressing key issues like source code ownership, data security compliance, and confidentiality obligations. It also typically includes provisions for dispute resolution through Indonesian arbitration courts and defines maintenance support after the software launch.

Use a Software Development Agreement when hiring external developers or tech companies to build custom software for your business in Indonesia. This becomes essential before starting any significant development work, especially when dealing with sensitive company data, complex technical requirements, or projects requiring substantial investment.

The agreement becomes particularly important for projects involving financial technology, healthcare applications, or government-linked systems where Indonesian data protection laws apply strictly. It helps prevent costly disputes over project scope, intellectual property rights, and maintenance obligations while ensuring compliance with local electronic transaction regulations.

• Custom Software Development Contract: Basic agreement for one-time, specific software projects with clear deliverables and fixed scope
• Agile Software Development Agreement: Flexible contract supporting iterative development with adjustable requirements and sprint-based deliveries
• Software Outsourcing Agreement: Comprehensive agreement for long-term development partnerships with offshore teams, including data protection and IP transfer provisions
• Employment Contract For Software Developer: Internal hiring agreement specifically tailored for in-house developers with IP assignment clauses

• Technology Companies: Act as service providers, developing custom software solutions while protecting their intellectual property and development methodologies
• Business Owners: Commission software projects and ensure their requirements are met, including data security and user experience specifications
• Legal Teams: Draft and review agreements to ensure compliance with Indonesian tech regulations and protect client interests
• Project Managers: Oversee deliverables, timelines, and communication between development teams and stakeholders
• IT Directors: Provide technical specifications and ensure alignment with existing systems and security protocols

• Project Scope: Document detailed software requirements, features, functionalities, and expected deliverables
• Timeline Planning: Map out development phases, milestones, testing periods, and final delivery dates
• Budget Details: Define payment terms, development costs, maintenance fees, and any additional service charges
• Technical Specifications: List programming languages, frameworks, hosting requirements, and integration needs
• Legal Requirements: Gather business licenses, tax information, and compliance needs under Indonesian IT laws
• IP Rights: Clarify ownership of source code, third-party components, and usage rights

• Parties and Scope: Complete legal names, business details, and clear project specifications
• Development Terms: Detailed milestones, deliverables, acceptance criteria, and testing procedures
• Payment Structure: Clear pricing, payment schedules, and conditions for additional charges
• IP Rights Transfer: Ownership provisions compliant with Indonesian Copyright Law
• Data Protection: Security measures meeting Indonesian Electronic Information Law requirements
• Confidentiality: Non-disclosure terms protecting both parties' sensitive information
• Dispute Resolution: Arbitration procedures under Indonesian law and jurisdiction

A Software Development Agreement differs significantly from a Software Maintenance Agreement in several key aspects under Indonesian law. While both deal with software services, their scope and timing are fundamentally different.

• Primary Purpose: Development agreements focus on creating new software from scratch, while maintenance agreements cover ongoing support and updates for existing software
• Duration: Development agreements typically end after project delivery, while maintenance agreements continue long-term
• Payment Structure: Development usually involves milestone-based payments for deliverables, whereas maintenance requires regular periodic fees
• Intellectual Property: Development agreements must address original code ownership and transfer rights, while maintenance agreements focus on access rights and bug fixes
• Performance Metrics: Development agreements measure project completion and functionality, while maintenance agreements track response times and system uptime