Kantika Media Bali and Blue Karma Secrets Partner on AI Concierge Loyalty Platform
Philippe LeCoutre
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8-27Arthur: We often talk about big tech partnerships, but the real work happens in the documents that define them. Today, we're looking at what is essentially a blueprint for a digital transformation, a SaaS agreement between a digital services provider, PT Kantika Media Bali, and a business, Blue Karma Secrets.
Mia: This agreement is a fascinating look at how a modern digital partnership is structured. It's not just a contract; it's a roadmap for building a new guest experience from the ground up, blending loyalty programs with AI.
Arthur: Right, it formalizes PT Kantika's role in designing, developing, and maintaining this whole new platform for Blue Karma. We're talking about a loyalty system and an AI-powered concierge, with a fully custom app planned for the future. It seems like a major step for Blue Karma's digital presence.
Mia: It's a huge step. 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.
Mia: This is where it gets interesting, with the phased approach.
Arthur: Exactly. The agreement details a two-phase delivery. Phase 1 is all about immediate impact: a ready-to-run digital loyalty system and a multi-platform AI assistant, covered by a monthly retainer. Then, Phase 2 is the big one: a 60 to 90-day project to build a completely bespoke Blue Karma Loyalty & Concierge application for a one-time fee.
Mia: And there's a critical detail in there about the AI system.
Arthur: There is. For the AI Concierge, the client, Blue Karma, is responsible for getting and paying for its own third-party AI service API key. The vendor, Kantika, just handles the technical integration.
Mia: That clear division of responsibilities, especially regarding the AI API key, is vital. It ensures the Client maintains control over their AI provider relationship and its costs, while the Vendor can just focus on making sure the integration works seamlessly.
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: Well, the critical factor is clearly understanding and managing the costs and terms of that third-party AI provider. The aha! moment here is that while the Vendor builds the car, the client is responsible for buying the gas. The operational expense and the strategic choice of which AI model to use 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.
Mia: Money and ownership. Always the most important clauses.
Arthur: The agreement outlines a clear financial structure: Phase 1 has a monthly retainer of 8,200,000 Indonesian Rupiah. Phase 2, the custom development, costs a one-time fee of 164,000,000 IDR, which is payable in five monthly installments. After launch, there's another monthly retainer for hosting and support.
Mia: I see. And what about the intellectual property? Who owns the final product?
Arthur: That's the key part. Upon full payment for Phase 2, the vendor assigns all rights to the custom work over to the client. The vendor keeps the rights to their underlying, pre-existing technology, but gives the client a license to use it as part of the app.
Mia: The payment structure, with installments for Phase 2, makes that significant development investment more manageable for the Client, and the IP assignment upon full payment is a standard but critical clause for ensuring they actually own what they paid for.
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.
Mia: This is the what if scenario that every client should be thinking about.
Arthur: To ensure business continuity, the agreement stipulates that if the Vendor ceases operations or becomes insolvent, they have to immediately grant the Client full administrative access to the production servers. We're talking credentials, source code, databases, all of it. On top of that, it's GDPR compliant, with the Client as the Data Controller and the Vendor as the Data Processor, with strong security commitments.
Mia: That business continuity clause is a vital safety net. It's basically a pre-authorized emergency handover plan, ensuring the Client isn't left stranded and can take over operations independently if the worst happens. The GDPR compliance also shows a serious, proactive approach to data privacy from both sides.
Arthur: Absolutely. Security and continuity are paramount. Finally, let's touch upon the performance guarantees and the legal framework governing this entire agreement.
Mia: The promises and the rulebook.
Arthur: The vendor commits to a Service Level Agreement, or SLA, for the custom app, guaranteeing 99.99% monthly uptime. They promise support responses within 24 hours on business days and critical bug fixes within 48 hours. The client also gets a 14-day acceptance period after Phase 2 is done to make sure everything works before the final payment.
Mia: That's a strong guarantee. And the legal side?
Arthur: The whole agreement is governed by the laws of the Republic of Indonesia, and any disputes that can't be negotiated will be handled in the District Court of Denpasar.
Mia: These SLA commitments provide very clear performance expectations and a path for recourse for the client. Having the Indonesian governing law and a local court for disputes just establishes a solid, definitive legal framework for the entire partnership. It removes ambiguity.
Arthur: So, to wrap this all up, if you were advising a business about to embark on a similar project, what are the key lessons from this agreement?
Mia: I think this agreement is a great model. First, the dual-phase development is smart—get something working quickly while building the perfect solution in the background. Second, the clarity on AI responsibility is crucial; the client must own their AI strategy and costs. The financial structure with installments makes a big project affordable. And most importantly, the clear path to intellectual property ownership, combined with that business continuity safety net and a strong SLA, creates a very secure and well-defined partnership. It’s a solid blueprint for building something ambitious.