Document background
The Commission Distribution Agreement is essential for businesses seeking to establish formal distribution channels in Indonesia through commission-based arrangements. This document is particularly relevant when a principal company wishes to engage a distributor to sell products or services in specific Indonesian territories while maintaining control over pricing and customer relationships. The agreement comprehensively addresses the requirements of Indonesian commercial law, including compliance with Government Regulation No. 44 of 1997 on Partnership and relevant Ministry of Trade regulations. It is commonly used when direct sales operations are not feasible or when local market expertise is required, providing a structured framework for commission calculations, performance metrics, and territorial rights while ensuring regulatory compliance.
