Kantika Media Bali and Blue Karma Secrets Partner on AI Concierge Loyalty Platform

Unveiling the Digital Partnership

PT Kantika Media Bali, an Indonesian digital services provider, has entered into a Software as a Service (SaaS) Agreement with Blue Karma Secrets, a Bali-based business. This agreement formalizes PT Kantika Media Bali's role in designing, developing, deploying, and maintaining a comprehensive loyalty program and an AI-powered concierge platform for Blue Karma Secrets. The core of the service involves creating immediate guest-facing functionalities, including a loyalty system and a multi-platform AI assistant, with a future phase dedicated to a bespoke custom application. This partnership aims to enhance Blue Karma's digital offerings and guest experience.

Arthur:

PT Kantika Media Bali, an Indonesian digital services provider, has entered into a Software as a Service (SaaS) Agreement with Blue Karma Secrets, a Bali-based business. This agreement formalizes PT Kantika Media Bali's role in designing, developing, deploying, and maintaining a comprehensive loyalty program and an AI-powered concierge platform for Blue Karma Secrets. The core of the service involves creating immediate guest-facing functionalities, including a loyalty system and a multi-platform AI assistant, with a future phase dedicated to a bespoke custom application. This partnership aims to enhance Blue Karma's digital offerings and guest experience.

Mia:

This agreement essentially lays the groundwork for a significant digital transformation for Blue Karma Secrets, leveraging AI to streamline operations and improve customer engagement from the outset.

Arthur:

Indeed, this foundational agreement sets the stage for the project. Now, let's dive into the specifics of what exactly these services entail and how the development will be structured.

Phase 1 & 2: Building the Digital Ecosystem

The SaaS agreement details a two-phase service delivery. Phase 1 focuses on immediate guest-facing functionalities, including a "ready-to-run" digital loyalty system and a multi-platform AI assistant, all covered by a monthly retainer. Phase 2 involves the one-time fee-based development of a bespoke, fully-featured "Blue Karma Loyalty & Concierge" custom application, estimated to take 60-90 days. Crucially, for the AI Concierge System, the Client is responsible for providing and managing its own third-party AI service API key and associated costs, while the Vendor handles the technical integration and operational functionality of the AI Concierge System.

Arthur:

The SaaS agreement details a two-phase service delivery. Phase 1 focuses on immediate guest-facing functionalities, including a "ready-to-run" digital loyalty system and a multi-platform AI assistant, all covered by a monthly retainer. Phase 2 involves the one-time fee-based development of a bespoke, fully-featured "Blue Karma Loyalty & Concierge" custom application, estimated to take 60-90 days. Crucially, for the AI Concierge System, the Client is responsible for providing and managing its own third-party AI service API key and associated costs, while the Vendor handles the technical integration and operational functionality of the AI Concierge System.

Mia:

This clear division of responsibilities, especially regarding the AI API key, is vital. It ensures the Client maintains control over their AI provider relationship and costs, while the Vendor focuses on seamless integration.

Arthur:

So, Mia, when we look at this division of responsibility for the AI concierge, what's the key takeaway for a business looking to implement similar AI-driven services? What's the critical factor the client needs to manage internally?

Mia:

The critical factor is clearly understanding and managing the costs and terms of the third-party AI provider. The "aha!" moment here is that while the Vendor builds the integration, the operational expense and strategic choice of AI model lie squarely with the Client. It's a shared responsibility, but the financial and strategic control of the AI itself rests with Blue Karma.

Arthur:

Absolutely, a crucial distinction. This setup for the AI concierge, along with the phased development, is all part of a larger framework. Let's now look at the financial commitments and how the project's intellectual property will be handled.

Financial Framework and Intellectual Property Rights

The agreement outlines a clear financial structure: Phase 1 involves a monthly retainer of 8,200,000 IDR for ongoing services. Phase 2, the custom program development, carries a one-time fee of 164,000,000 IDR, payable in five monthly installments starting December 2025. A post-launch retainer of 8,200,000 IDR per month covers hosting, support, and maintenance. Importantly, upon full payment for Phase 2, the Vendor assigns all rights to the custom deliverables to the Client, while retaining underlying Vendor IP and granting the Client a license to use it within the delivered application.

Arthur:

The agreement outlines a clear financial structure: Phase 1 involves a monthly retainer of 8,200,000 IDR for ongoing services. Phase 2, the custom program development, carries a one-time fee of 164,000,000 IDR, payable in five monthly installments starting December 2025. A post-launch retainer of 8,200,000 IDR per month covers hosting, support, and maintenance. Importantly, upon full payment for Phase 2, the Vendor assigns all rights to the custom deliverables to the Client, while retaining underlying Vendor IP and granting the Client a license to use it within the delivered application.

Mia:

The payment structure, with installments for Phase 2, makes the significant development investment more manageable for the Client, and the IP assignment upon full payment is a standard but critical clause for ownership.

Arthur:

Exactly. Ownership transfer is key. Beyond finances and IP, a crucial aspect of any service agreement is ensuring business continuity. Let's discuss what happens if the Vendor's operations are impacted.

Ensuring Business Continuity and Data Protection

To ensure business continuity, the agreement stipulates that if the Vendor ceases operations or becomes insolvent, they must immediately grant the Client full administrative access to the production servers, including all necessary credentials, source code, databases, and application data. Furthermore, the agreement is GDPR compliant, defining roles where the Client is the Data Controller and the Vendor the Data Processor. The Vendor commits to robust security measures for personal data, including encryption and access controls, and will notify the Client without undue delay in case of a personal data breach.

Arthur:

To ensure business continuity, the agreement stipulates that if the Vendor ceases operations or becomes insolvent, they must immediately grant the Client full administrative access to the production servers, including all necessary credentials, source code, databases, and application data. Furthermore, the agreement is GDPR compliant, defining roles where the Client is the Data Controller and the Vendor the Data Processor. The Vendor commits to robust security measures for personal data, including encryption and access controls, and will notify the Client without undue delay in case of a personal data breach.

Mia:

The business continuity clause is a vital safety net, ensuring the Client can take over operations independently if needed. The GDPR compliance and clear data processor roles demonstrate a commitment to data privacy and security from both parties.

Arthur:

Absolutely. Security and continuity are paramount. Finally, let's touch upon the performance guarantees and the legal framework governing this entire agreement.

Service Level Agreements and Legal Framework

The Vendor commits to a Service Level Agreement (SLA) for the "Loyalty Custom" application, guaranteeing a minimum platform uptime of 99.99% monthly, excluding scheduled maintenance and force majeure. Support response time is within 24 hours on Indonesian business days, with critical bug fixes addressed within 48 hours. The Client has a 14-day acceptance period after Phase 2 completion before final payment. The agreement is governed by the laws of the Republic of Indonesia, with disputes to be resolved through good faith negotiations or, if unresolved, submitted to the District Court of Denpasar.

Arthur:

The Vendor commits to a Service Level Agreement (SLA) for the "Loyalty Custom" application, guaranteeing a minimum platform uptime of 99.99% monthly, excluding scheduled maintenance and force majeure. Support response time is within 24 hours on Indonesian business days, with critical bug fixes addressed within 48 hours. The Client has a 14-day acceptance period after Phase 2 completion before final payment. The agreement is governed by the laws of the Republic of Indonesia, with disputes to be resolved through good faith negotiations or, if unresolved, submitted to the District Court of Denpasar.

Mia:

These SLA commitments provide clear performance expectations and recourse for the Client, while the Indonesian governing law and local jurisdiction for disputes establish a definitive legal framework for the partnership.

KANTIKA MEDIA BALI
x
BLUE KARMA SECRETS

Unveiling the Digital Partnership

Phase 1 & 2: Building the Digital Ecosystem

Financial Framework and Intellectual Property Rights

Ensuring Business Continuity and Data Protection

Service Level Agreements and Legal Framework

Key Takeaways

Dual-Phase Development

Client's AI Responsibility

Financial Commitments

Intellectual Property

Business Continuity & Data Security

Service Guarantees & Legal Framework

KANTIKA MEDIA BALI x BLUE KARMA SECRETS

Unveiling the Digital Partnership

Phase 1 & 2: Building the Digital Ecosystem

Financial Framework and Intellectual Property Rights

Ensuring Business Continuity and Data Protection

Service Level Agreements and Legal Framework

Key Takeaways

Dual-Phase Development

Client's AI Responsibility

Financial Commitments

Intellectual Property

Business Continuity & Data Security

Service Guarantees & Legal Framework

KANTIKA MEDIA BALI
x
BLUE KARMA SECRETS