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Agency Agreement for Indonesia

Agency Agreement Template for Indonesia

An Agency Agreement governed by Indonesian law establishes a formal relationship between a principal and an agent, authorizing the agent to act on behalf of the principal within specified parameters in the Indonesian market. The document complies with Indonesian Civil Code requirements and relevant commercial regulations, incorporating specific provisions for territory rights, commission structures, and compliance with local business practices. It addresses key aspects such as agent authority, duties, compensation, and termination rights while ensuring alignment with Indonesian agency and commercial laws.

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What is a Agency Agreement?

This Agency Agreement template is designed for use in Indonesia when establishing a formal commercial representation arrangement between a principal and an agent. It is particularly relevant for businesses seeking to expand their presence in the Indonesian market through local representatives, whether they are domestic or international companies. The agreement complies with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations, particularly Ministry of Trade Regulation No. 11/M-DAG/PER/3/2006 concerning trade agents. It covers essential elements such as appointment terms, territorial rights, commission structures, performance requirements, and compliance obligations, while incorporating necessary protections for both parties under Indonesian law.

What sections should be included in a Agency Agreement?

1. Parties: Identification of the Principal and Agent, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, business relationship, and purpose of the agency arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the agent and detailed scope of authority

5. Territory: Geographic area where the agent is authorized to act

6. Duration and Termination: Term of the agreement and circumstances for termination

7. Agent's Rights and Obligations: Comprehensive list of agent's responsibilities and entitlements

8. Principal's Rights and Obligations: Comprehensive list of principal's responsibilities and entitlements

9. Commission and Payment Terms: Structure of commission, calculation method, and payment terms

10. Intellectual Property: Usage rights and protection of principal's trademarks and other IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions on competing activities during and after the agreement

13. Compliance with Laws: Obligation to comply with Indonesian laws and regulations

14. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendment process, etc.

What sections are optional to include in a Agency Agreement?

1. Sub-Agents: Include when the agent is permitted to appoint sub-agents

2. Performance Targets: Include when specific performance metrics are required

3. Marketing and Promotion: Include when agent has specific marketing responsibilities

4. Training Requirements: Include when principal must provide training to the agent

5. Insurance: Include when specific insurance coverage is required

6. Data Protection: Include when personal data processing is involved

7. Force Majeure: Include when specific force majeure provisions are needed beyond standard provisions

8. Bank Guarantee: Include when financial security is required from the agent

9. Stock Management: Include when agent will maintain inventory

10. Foreign Exchange Provisions: Include when transactions involve multiple currencies

What schedules should be included in a Agency Agreement?

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculations

3. Schedule 3 - Territory Map: Detailed map and description of the authorized territory

4. Schedule 4 - Performance Targets: Specific metrics and targets for agent performance

5. Schedule 5 - Reporting Templates: Standard forms for regular reporting requirements

6. Schedule 6 - Operating Procedures: Detailed procedures for day-to-day operations

7. Schedule 7 - Approved Sub-Agents: List of pre-approved sub-agents if applicable

8. Appendix A - Required Licenses: Copies of mandatory licenses and permits

9. Appendix B - Brand Guidelines: Guidelines for use of principal's branding and materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions







































Clauses















































Relevant Industries

Manufacturing

Consumer Goods

Technology

Pharmaceutical

Automotive

Industrial Equipment

Fashion and Retail

Food and Beverage

Construction Materials

Electronics

Agricultural Products

Telecommunications

Financial Services

Insurance

Real Estate

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Risk Management

Corporate Affairs

International Business

Distribution

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Sales Director

Legal Counsel

Compliance Officer

Contract Manager

Country Manager

Regional Director

Sales Manager

Channel Manager

Distribution Manager

Corporate Secretary

Risk Manager

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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