Document background
The Consignment Stock Agreement is a crucial document used in Indonesian business operations when a supplier wishes to place goods with a retailer or distributor while maintaining ownership until final sale. This arrangement, governed by Indonesian law including the Civil Code and Trade Law, provides flexibility for both parties while managing inventory risk. The agreement is particularly valuable for businesses testing new markets or products, or when dealing with high-value items. The document comprehensively covers delivery terms, storage requirements, pricing structures, commission rates, reporting obligations, and risk allocation. It ensures compliance with Indonesian regulations while protecting both parties' interests in the consignment relationship.
