Document background
The Exclusive Agency Agreement is a crucial document for businesses seeking to establish a formal representation arrangement in Indonesia through an exclusive agent. This agreement type is commonly used when a company (typically foreign or based in another region of Indonesia) wants to penetrate the Indonesian market through a dedicated local representative while maintaining control over their product or service distribution. The document must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and trade regulations, and requires careful consideration of local business practices and regulatory requirements. It typically includes detailed provisions on territorial exclusivity, performance targets, commission structures, and compliance with local agency registration requirements. The agreement is particularly important in sectors where local market knowledge and relationships are crucial for business success.
