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Software Supply Agreement for Indonesia

Software Supply Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the supply of software products from a provider to a customer. The agreement covers essential aspects including software licensing, implementation, maintenance, support services, and compliance with Indonesian regulations such as the ITE Law and Data Protection Law. It includes detailed provisions for intellectual property rights, warranties, liability limitations, and data security requirements while ensuring alignment with Indonesian Civil Code requirements for contract formation and enforcement.

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What is a Software Supply Agreement?

The Software Supply Agreement is a crucial document used when an organization seeks to procure software solutions from a provider under Indonesian law. This agreement is essential for establishing clear terms regarding software licensing, delivery, implementation, and ongoing support while ensuring compliance with Indonesian regulations, particularly the Civil Code, ITE Law, and Data Protection Law. It protects both parties' interests by clearly defining responsibilities, warranties, intellectual property rights, and remedies for breach. The agreement is particularly important in the Indonesian context where electronic transactions and software implementations must comply with specific local regulatory requirements, including those related to electronic system operations and data protection. This document serves as the primary contractual framework for software procurement relationships, whether for off-the-shelf solutions or customized software implementations.

What sections should be included in a Software Supply Agreement?

1. Parties: Identification of the supplier and customer, including their full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including brief description of the software and purpose of the supply arrangement

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

4. Software Description and Scope: Detailed description of the software being supplied, including versions, modules, and functionality

5. Delivery and Implementation: Terms regarding software delivery, installation, and implementation timeline

6. License Grant: Scope of software license, usage rights, and restrictions

7. Intellectual Property Rights: Ownership of IP rights, protection of proprietary rights, and infringement provisions

8. Fees and Payment: Payment terms, fee structure, and invoicing procedures

9. Warranties and Support: Software warranties, maintenance, and support obligations

10. Data Protection and Security: Obligations regarding data protection, security measures, and compliance with Indonesian data protection laws

11. Term and Termination: Duration of agreement, renewal terms, and termination rights

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices

What sections are optional to include in a Software Supply Agreement?

1. Implementation Services: Detailed terms for implementation services when the supplier is responsible for software installation and configuration

2. Service Levels: Service level commitments and remedies when specific performance standards are required

3. Training: Terms regarding user training when included in the supply arrangement

4. Source Code Escrow: Provisions for source code escrow arrangements when agreed between parties

5. Data Migration: Terms regarding migration of customer data when relevant

6. Disaster Recovery: Disaster recovery and business continuity provisions for critical software

7. Third-Party Software: Terms regarding third-party software components when included in the supply

8. Export Controls: Export control provisions when software is subject to international trade restrictions

What schedules should be included in a Software Supply Agreement?

1. Software Specification: Detailed technical specifications of the software

2. Service Level Agreement: Detailed service levels, metrics, and remedies

3. Fee Schedule: Detailed breakdown of fees, payment milestones, and pricing terms

4. Implementation Plan: Detailed timeline and milestones for software implementation

5. Support and Maintenance Services: Detailed description of support and maintenance services

6. Security Requirements: Detailed security requirements and standards

7. Data Processing Terms: Detailed terms regarding data processing and protection

8. Acceptance Testing Criteria: Detailed acceptance testing procedures and criteria

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Supply Agreement

Cost

Free to use

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