Chinese enterprises in Indonesia often face significant challenges in managing procurement contracts. Vague terms, imbalanced clauses, and disputes with vendors can disrupt operations and create costly risks. To overcome these hurdles, companies require both a solid grasp of the legal foundations of contract law in Indonesia and the practical skills to apply that knowledge in their daily business activities.
Schinder Law Firm recently conducted an in-house training session on Procurement Contracts for Borneo Alumindo Prima (“BAP”), designed to strengthen corporate governance and enhance legal awareness. Delivered in a hybrid format—offline at BAP’s office and simultaneously online to accommodate ongoing business operations in Ketapang, West Kalimantan, Indonesia —the program ensured inclusivity across divisions without disrupting daily work.
The training explored the legal foundations of contract law in Indonesia, particularly Articles 1320 and 1338 of the Civil Code, which establish the validity of agreements and the principle of contractual freedom. This framework provided the basis for discussing the general procurement process, from needs identification and vendor selection to negotiation, execution, and closure.
The session also emphasized negotiation strategies and legal tactics. Participants were guided through preparing term sheets, understanding counterpart interests, and approaching contract negotiations with a balance of firmness and collaboration. Practical advice was shared on securing key terms early, avoiding unfair clauses, and adopting a “win-win” mindset to ensure sustainable partnerships.
Furthermore, participants examined essential clauses, including scope of work, technical specifications, payment terms, guarantees, force majeure, and dispute resolution. Practical discussions highlighted the importance of drafting contracts with precision to avoid ambiguity and protect company interests.
The program was led by Budhi Satya Makmur, S.H., M.H., Partner at Schinder Law Firm, a qualified advocate with more than 14 years of experience in litigation, arbitration, and corporate matters. His extensive track record includes representing domestic and multinational companies before the Indonesia arbitration institution and Indonesian courts. Budhi was supported by Rifcky Utomo, S.H., a lawyer from Schinder’s team who regularly handles cases involving Chinese, English, and Indonesian-speaking companies. Their combined expertise ensured that the training was delivered with both legal depth and practical accessibility.
What made this initiative stand out was that it was carefully tailored to the client’s context, industry, and preferred style of communication, enabling participants to engage fully and apply the knowledge directly to their roles. By the end of the training, BAP’s participants gained a clearer understanding of both the legal requirements and practical applications of procurement contracts.
With the right legal guidance, procurement contracts can be transformed from compliance obligations into competitive advantages. Schinder Law Firm remains committed to supporting Chinese enterprises in Indonesia with tailored training and strategic legal solutions, helping them navigate the complexities of the regulatory landscape with confidence.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Budhi Satya Makmur