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Master Sales Agreement Template for Indonesia

A comprehensive commercial agreement governed by Indonesian law that establishes the fundamental terms and conditions for ongoing sales transactions between parties. This document serves as an umbrella agreement under which future sales will be conducted, incorporating key requirements of Indonesian commercial law, including mandatory language provisions, specific performance obligations, and local regulatory compliance requirements. It addresses essential elements such as ordering mechanisms, pricing structures, delivery terms, quality standards, and dispute resolution procedures, while ensuring alignment with Indonesian Civil Code and relevant trade regulations.

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What is a Master Sales Agreement?

The Master Sales Agreement is designed for businesses engaged in recurring sales transactions within the Indonesian market or with Indonesian entities. This document type is particularly crucial when parties anticipate multiple transactions over time and wish to avoid negotiating terms for each individual sale. The agreement must comply with Indonesian law requirements, including Law No. 24 of 2009 regarding language requirements, and encompasses essential provisions required by the Indonesian Civil Code and Commercial Code. It typically includes detailed terms for ordering procedures, pricing mechanisms, delivery arrangements, quality standards, and dispute resolution, while allowing flexibility for specific transaction details to be handled through purchase orders. The Master Sales Agreement is commonly used in both domestic Indonesian trade and international transactions where at least one party is Indonesian or the performance occurs within Indonesia.

What sections should be included in a Master Sales Agreement?

1. Parties: Identification of parties with complete legal names, registration numbers, and addresses as required under Indonesian law

2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and language governance (must address Indonesian/English language requirements)

4. Scope of Agreement: Framework terms for future sales, including territory, products/services covered, and exclusivity provisions if any

5. Ordering Process: Procedures for purchase orders, order acceptance, and formation of individual sales contracts

6. Pricing and Payment Terms: Price determination, currency considerations (addressing Rupiah requirements), payment methods and timing

7. Delivery and Risk: Delivery terms, transfer of risk, acceptance procedures, and documentation requirements

8. Quality and Specifications: Product quality standards, specifications, and compliance with Indonesian regulations

9. Warranties and Representations: Standard warranties for products/services, including compliance with Indonesian consumer protection laws

10. Term and Termination: Duration of agreement, renewal provisions, and termination rights

11. Confidentiality: Protection of confidential information and trade secrets

12. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

13. Force Majeure: Events excusing performance, including specific reference to local conditions

14. Governing Law and Dispute Resolution: Indonesian law governance and dispute resolution mechanisms

15. General Provisions: Standard boilerplate including notices, amendments, assignment, and severability

16. Execution: Signing provisions compliant with Indonesian law, including requirements for stamps and witnesses if applicable

What sections are optional to include in a Master Sales Agreement?

1. Minimum Purchase Commitments: Used when buyer agrees to minimum purchase volumes or values

2. Exclusivity Arrangements: When parties agree to exclusive dealing arrangements in specific territories

3. Marketing and Promotion: When seller provides marketing support or buyer has promotion obligations

4. Training and Support: When technical products require seller to provide training or ongoing support

5. Intellectual Property Rights: When products involve licenses of IP rights or technology transfer

6. Compliance with Anti-Corruption Laws: When dealing with government entities or high-risk sectors

7. Data Protection: When transaction involves personal data processing

8. Import/Export Compliance: When products are imported/exported across Indonesian borders

9. Environmental Compliance: When products have environmental impact or regulations

10. Local Content Requirements: When subject to Indonesian local content regulations

What schedules should be included in a Master Sales Agreement?

1. Product Schedule: Detailed list of products/services covered under the agreement

2. Price List: Standard prices and any volume-based discounts

3. Technical Specifications: Detailed product specifications and quality standards

4. Service Level Agreement: Performance metrics and service standards if applicable

5. Territory Schedule: Defined territories for sales and distribution rights

6. Key Performance Indicators: Metrics for measuring performance under the agreement

7. Form of Purchase Order: Standard template for purchase orders

8. Delivery Requirements: Specific delivery terms, packaging, and documentation requirements

9. Warranty Procedures: Detailed warranty claim and return procedures

10. Authorized Representatives: List of authorized signatories and contact persons

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

GenieAI

Document Type

Sale Agreement

Cost

Free to use

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