Non-disclosure Agreement (NDA)

A Non-Disclosure Agreement is frequently used in business to maintain the confidentiality of private information supplied to another party or communicated during the course of business. Non-Disclosure Agreements are frequently referred to as “Confidentiality Agreements” or simply “NDAs.” A secrecy agreement is occasionally a confidentiality clause inserted in another contract, such as an employment contract or a service agreement.

A Non-Disclosure Agreement serves two functions: secrecy and protection. A confidentiality agreement might safeguard information ranging from product specifications to client rosters. A NDA establishes the legal basis for preventing ideas and information from being stolen or disclosed to rivals or third parties. An NDA serves three fundamental purposes:

The NDA has numerous common components, including the following:

Non-Disclosure Agreements can be unilateral or bilateral:

The following are some examples of when you would wish to employ a Non-Disclosure Agreement:

In Indonesia, “Confidential Information” refers to any information that has commercial value due to its secrecy and is not generally known by the public. This includes, but is not limited to, production methods, processing methods, sales methods, and other information in the fields of technology or business. The Law of the Republic of Indonesia Number 30 of 2000 concerning Trade Secrets specifically addresses the protection of such information. It is crucial for businesses to define confidential information clearly in their Non-Disclosure Agreements (NDAs) to ensure legal protection against unauthorized disclosure or use.

In the event of a breach of a Non-Disclosure Agreement (NDA) in Indonesia, the party who has violated the agreement may face legal consequences. The specific repercussions depend on the terms outlined in the NDA itself. Generally, the aggrieved party can initiate legal action against the violator, seeking remedies such as injunctions to prevent further disclosures and monetary damages for any losses incurred. The Indonesian legal system may enforce these penalties to uphold the confidentiality obligations agreed upon by the parties involved.