The Consortium Partnership Agreement serves as a foundational document for organizations seeking to collaborate on large-scale projects or business ventures in Indonesia. This agreement type is particularly crucial when multiple parties need to combine their expertise, resources, and capabilities while maintaining their separate legal identities. The document is structured to comply with Indonesian legal requirements, including the Civil Code, Investment Law, and sector-specific regulations. It typically includes detailed provisions for governance, risk allocation, profit sharing, and operational management. The agreement is commonly used in infrastructure projects, energy developments, and other complex ventures where single organizations may lack the complete capability or capacity to execute independently. The document must be drafted in Indonesian language (with permitted translations) and requires careful consideration of local partnership laws and foreign investment regulations.
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1. Parties: Identification and details of all consortium members
2. Background: Context of the consortium formation and intended purpose
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope and Objectives: Detailed description of consortium's purpose and scope of activities
5. Term and Duration: Period of the consortium agreement including commencement and termination dates
6. Contributions and Capital: Details of each member's contributions (financial, assets, expertise, etc.)
7. Roles and Responsibilities: Specific roles and obligations of each consortium member
8. Management and Governance: Decision-making processes, voting rights, and management structure
9. Financial Arrangements: Profit sharing, loss allocation, and financial management procedures
10. Intellectual Property Rights: Ownership and usage rights of IP brought to or developed within the consortium
11. Confidentiality: Protection and handling of confidential information
12. Liability and Indemnification: Allocation of risks and liabilities between consortium members
13. Dispute Resolution: Procedures for resolving disputes between consortium members
14. Termination: Grounds and procedures for termination of the agreement
15. Governing Law: Specification of Indonesian law as governing law and jurisdiction
1. Competition Compliance: Specific provisions ensuring compliance with competition laws, required when consortium activities might raise antitrust concerns
2. Foreign Investment Provisions: Special provisions required when consortium includes foreign partners
3. Export Control: Provisions regarding export regulations, needed when consortium involves international trade
4. Environmental Compliance: Environmental protection obligations, required for projects with environmental impact
5. Labor and Employment: Provisions regarding shared employees or labor arrangements, needed when consortium involves joint staffing
6. Insurance: Insurance requirements and arrangements, important for high-risk projects
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or high-risk projects
8. Step-In Rights: Rights of members to step in if another member defaults, relevant for critical project-based consortiums
1. Schedule 1 - Business Plan: Detailed business plan and strategic objectives of the consortium
2. Schedule 2 - Member Contributions: Detailed breakdown of each member's contributions and valuations
3. Schedule 3 - Governance Procedures: Detailed procedures for meetings, voting, and decision-making
4. Schedule 4 - Financial Procedures: Detailed financial management and reporting procedures
5. Schedule 5 - Project Scope: Technical specifications and scope of work (for project-specific consortiums)
6. Schedule 6 - Key Personnel: List of key personnel from each member assigned to the consortium
7. Appendix A - Communication Protocol: Procedures for formal communications between consortium members
8. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements applicable to the consortium
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