Buatkontrak.com comes to the aid of Indonesian SMEs
By Yunnie Marzuki March 1, 2017
- Has a team of 35 lawyers with plans to add up to 150 this year
- Drafts and reviews contracts in Bahasa Indonesia and English
IT IS neither cheap nor easy to obtain the legal services needed to protect a business, especially when it comes to small and medium enterprise (SME) owners who may not be conversant with formal legalities and often start a business based on trust.
Founded by Rieke Caroline who is also its managing partner and Young on Top founder and CEO Billy Boen, legaltech startup PT Teras Perjanjian Digital or buatkontrak.com connects SMEs and digital startups in Indonesia with their legal team to aid in preparing and reviewing contracts.
“It started from my own unpleasant experience, where my family business was not doing so well because we did not completely comprehend legal business terms. I then set out to educate small and medium enterprises in legally protecting their businesses,” said Rieke to Digital News Asia via email.
buatkontrak.com was formed 10 months and currently has a team of 35 lawyers. It focuses on showing SMEs the importance of contracts in starting a business or partnership in order to avoid disputes between two or more parties in the future.
“Our target in 2017 is to add up to 150 lawyers to our team and to massively reach small and medium enterprises to provide legal contract services,” explained Rieke.
According to government website depkop.go.id there were 602,195 small enterprises and 44,280 medium enterprises focused on agriculture, fisheries, livestock, forestry, mining, manufacturing, infrastructure, trade, communications, finance, and private services in 2011.
There are three classifications of services in buatkontrak.com’s repertoire, namely, monthly sales targets, business licenses, and amount of transactions.
Users can sign up to obtain a lawyer’s services from buatkontrak.com’s website. Clients will be able to draft statements or notes and the lawyer will ‘translate’ them into legal terms. Each user will have their own dashboard on which to save documents.
The cost of these services, which are based on the type of services, size of company, and category of businesses contracts are available on the website. Drafting and reviewing contract services areavailable in Bahasa Indonesia and English.
Drafting a contract (maximum 10 pages) for a small enterprise in Bahasa Indonesia will cost one million rupiah (US$75) while a contract in English will cost two million rupiah (US$150).
For a medium enterprise, the cost of drafting contract in Bahasa Indonesia is 2.5 million rupiah (US$187) and four million rupiah (US$300) for a contract in English.
Small enterprises will be charged 900,000 rupiah (US$67) to review a contract (legal opinion included, max. 10 pages) in Bahasa Indonesia and 1.9 million rupiah (US$142) to do the same in English.
Medium enterprise will be charged 2.25 million rupiah (US$168) to review a contract in Bahasa Indonesia and in 3.75 million rupiah (US$281) for a contract in English.
Every extra page of drafting and reviewing for small enterprises in Bahasa Indonesia will be 100,000 rupiah (US$7.5), and 200,000 rupiah (US$15) per page in English.
For medium enterprise, every extra page of drafting and reviewing in Bahasa Indonesia is 250,000 rupiah and 400,000 rupiah per page in English.
In order to further assist and reach out to SMEs, buatkontrak.com has formed partnerships with the Ministry of Cooperatives Small and Medium Enterprises, Indonesian Creative Economy Agency (BEKRAF), SMESCO, Revolving Fund Management Agency for Small and Medium Enterprises (LPDB), Bank Mandiri, Indosat, Telkom, Founder Institute (Kejora Ventures), Indonesian Young Entrepreneur Association (HIPMI), and The Employers’ Association of Indonesia (APINDO).