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The Exclusive Distribution Letter is commonly used in Indonesian business practice when companies wish to establish a formal exclusive distribution arrangement without the complexity of a full distribution agreement. This document is particularly relevant when entering the Indonesian market or appointing new distributors, requiring compliance with local regulations including the Anti-Monopoly Law (Law No. 5 of 1999) and various Ministry of Trade regulations. The letter format provides a more streamlined approach while still containing essential elements such as exclusivity terms, territory definitions, product specifications, and basic commercial arrangements. It's especially useful for initial distribution relationships or where parties prefer a more concise documentation of their arrangement while maintaining legal enforceability under Indonesian law.

1. Letter Header: Company letterhead, date, reference number, and recipient's complete address

2. Subject Line: Clear indication that this is regarding an Exclusive Distribution Appointment

3. Opening Statement: Formal greeting and introduction of the parties involved

4. Background: Brief context about the business relationship and reason for appointment

5. Appointment: Clear statement of exclusive distributor appointment and territory coverage

6. Product Definition: Specific products covered under the distribution arrangement

7. Term: Duration of the exclusive distribution arrangement

8. Key Obligations: Core responsibilities of both parties including minimum purchase requirements and territory restrictions

9. Commercial Terms: Basic commercial arrangements including pricing and payment terms

10. Termination Rights: Basic conditions under which either party may terminate the arrangement

11. Confirmation Request: Request for countersignature and return of duplicate copy

12. Signature Block: Space for signatures of both parties, including acceptance statement