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Distribution Partnership Agreement Template for Indonesia

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Key Requirements PROMPT example:

Distribution Partnership Agreement

"I need a Distribution Partnership Agreement for my Indonesian technology company to appoint an exclusive distributor for our software products in East Java, with the agreement starting March 2025 and including specific performance targets and technical support obligations."

Document background
The Distribution Partnership Agreement is a crucial document used to establish formal distribution relationships in the Indonesian market. This agreement type is essential for companies looking to expand their market presence in Indonesia through local distribution partners, ensuring compliance with Law No. 7 of 2014 on Trade and related regulations. It is particularly important given Indonesia's geographical complexity and diverse market conditions, requiring careful consideration of territorial rights, local business practices, and regulatory compliance. The agreement typically includes detailed provisions for product distribution rights, operational requirements, financial terms, performance metrics, and territory management, while ensuring alignment with Indonesian competition laws and sector-specific regulations. This document is fundamental for both domestic and international companies establishing distribution networks in Indonesia, providing a clear framework for long-term business relationships while protecting both parties' interests.
Suggested Sections

1. Parties: Identification of the Principal/Supplier and the Distributor, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of both parties' businesses, and their intentions to enter into a distribution partnership

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

4. Appointment and Territory: Terms of distributor appointment, exclusivity status, and defined geographic territory

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Distribution Rights and Obligations: Detailed rights and responsibilities of the distributor, including sales targets and market development

7. Principal's Rights and Obligations: Responsibilities of the principal, including product supply, support, and training

8. Ordering and Delivery: Procedures for ordering products, delivery terms, and logistics arrangements

9. Prices and Payment Terms: Product pricing structure, payment terms, and currency considerations

10. Marketing and Promotion: Requirements for marketing, advertising, and promotion of products

11. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP, including restrictions

12. Confidentiality: Protection of confidential information and trade secrets

13. Warranties and Indemnities: Product warranties, representations, and indemnification provisions

14. Termination: Grounds for termination, notice requirements, and post-termination obligations

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

Optional Sections

1. Product Training and Support: Detailed provisions for technical training and support, relevant for complex or technical products

2. Quality Control: Specific quality standards and control measures, important for regulated products or luxury goods

3. Insurance Requirements: Specific insurance coverage requirements, particularly relevant for high-value or hazardous products

4. Data Protection: Specific provisions for handling customer data, relevant when personal data processing is involved

5. Import/Export Compliance: Necessary for international distribution arrangements involving customs and trade regulations

6. E-commerce Provisions: Required when online sales channels are part of the distribution strategy

7. Anti-Corruption Compliance: Detailed anti-corruption provisions, particularly important when dealing with government contracts or regulated industries

Suggested Schedules

1. Schedule 1: Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2: Territory Map: Detailed map and description of the authorized distribution territory

3. Schedule 3: Minimum Purchase Requirements: Annual or periodic minimum purchase quantities or values

4. Schedule 4: Price List: Detailed pricing structure, including discounts and special terms

5. Schedule 5: Marketing Guidelines: Specific requirements for marketing, including brand guidelines and approved materials

6. Schedule 6: Service Level Requirements: Detailed performance metrics and service level expectations

7. Schedule 7: Technical Specifications: Detailed technical requirements for product handling, storage, or maintenance

8. Schedule 8: Reporting Templates: Standard forms for regular reporting requirements

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

Relevant legal definitions











































Clauses








































Relevant Industries

Consumer Goods

Electronics and Technology

Automotive

Pharmaceuticals and Healthcare

Food and Beverage

Industrial Equipment

Fashion and Apparel

Construction Materials

Agriculture and Farm Equipment

Telecommunications

Energy and Resources

Chemical Products

Relevant Teams

Legal

Commercial

Sales

Business Development

Supply Chain

Operations

Compliance

Distribution

Finance

Marketing

International Trade

Procurement

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Supply Chain Manager

Operations Director

Channel Manager

Distribution Manager

Country Manager

Compliance Officer

Chief Executive Officer

Contract Manager

Regional Sales Manager

Partnership Manager

General Manager

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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