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Procurement Contract for Indonesia

Procurement Contract Template for Indonesia

A comprehensive procurement contract template designed for use in Indonesia, incorporating requirements from Presidential Regulation No. 16 of 2018 and other relevant Indonesian procurement laws. The document facilitates the purchase of goods and services while ensuring compliance with local content requirements, anti-corruption regulations, and Indonesian commercial law. It includes provisions for quality control, delivery terms, payment mechanisms, and dispute resolution procedures specific to the Indonesian legal framework, making it suitable for both government and private sector procurement activities.

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What is a Procurement Contract?

Procurement Contracts in Indonesia require careful consideration of both international best practices and local regulatory requirements. This document template is designed for use in situations where organizations need to establish formal procurement relationships while ensuring compliance with Indonesian law, particularly Presidential Regulation No. 16 of 2018 and related procurement regulations. The contract template accommodates various procurement scenarios, from straightforward goods purchase to complex service arrangements, incorporating mandatory local content requirements, anti-corruption provisions, and specific Indonesian commercial law considerations. It is structured to protect both buyers and suppliers while maintaining transparency and regulatory compliance in procurement processes.

What sections should be included in a Procurement Contract?

1. Parties: Identification of the parties entering into the contract, including their legal names, registration numbers, and addresses

2. Background: Context of the procurement relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Supply: Detailed description of goods/services to be provided, including quantities and specifications

5. Contract Price and Payment Terms: Pricing details, payment schedule, payment method, and currency

6. Delivery Terms: Delivery schedule, location, shipping terms, and Incoterms where applicable

7. Quality and Standards: Quality requirements, applicable standards, and inspection procedures

8. Local Content Requirements: Compliance with Indonesian local content regulations and requirements

9. Warranties and Representations: Warranties regarding goods/services quality, compliance with laws, and authority to contract

10. Compliance and Anti-Corruption: Compliance with Indonesian anti-corruption laws and procurement regulations

11. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

12. Termination: Grounds and procedures for contract termination

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Procurement Contract?

1. Intellectual Property Rights: Required when the procurement involves transfer or use of intellectual property

2. Technology Transfer: Needed when the procurement includes technology transfer components

3. Training and Support: Include when supplier must provide training or ongoing support

4. Insurance Requirements: Detailed insurance obligations when dealing with high-value or high-risk goods

5. Bank Guarantees: Required for high-value contracts or when advance payments are involved

6. Environmental Compliance: Include for procurements with environmental impact considerations

7. Customs and Import Duties: Required for international procurement involving imported goods

8. Subcontracting: Include when supplier may need to engage subcontractors

What schedules should be included in a Procurement Contract?

1. Schedule 1 - Technical Specifications: Detailed technical specifications of goods or services being procured

2. Schedule 2 - Pricing Breakdown: Itemized pricing, including unit prices and total costs

3. Schedule 3 - Delivery Schedule: Detailed timeline for delivery of goods or completion of services

4. Schedule 4 - Performance Standards: Specific performance metrics and standards to be met

5. Schedule 5 - Required Documentation: List of documents required for customs, compliance, and acceptance

6. Schedule 6 - Quality Control Procedures: Detailed quality control and testing procedures

7. Schedule 7 - Local Content Calculations: Breakdown of local content percentages and calculations

8. Appendix A - Forms and Ƶ: Standard forms for delivery acceptance, payment requests, and other procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Service Contract

Cost

Free to use
Relevant legal definitions










Clauses




































Relevant Industries

Manufacturing

Construction

Energy

Mining

Technology

Healthcare

Infrastructure

Transportation

Telecommunications

Agriculture

Defense

Education

Public Utilities

Oil and Gas

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Compliance

Risk Management

Quality Assurance

Project Management

Commercial

Technical

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Contract Administrator

Legal Counsel

Compliance Officer

Project Manager

Finance Director

Operations Manager

Technical Specialist

Quality Assurance Manager

Vendor Relations Manager

Chief Financial Officer

Risk Manager

Sourcing Specialist

Commercial Director

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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