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Referral Partner Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates a referral partnership between two parties, where one party agrees to refer potential customers or business opportunities to the other party in exchange for agreed-upon compensation. The agreement includes detailed provisions for referral processes, commission structures, data protection compliance under Indonesian regulations, confidentiality obligations, and operational procedures, while ensuring compliance with Indonesian commercial and electronic transaction laws. It provides a framework for managing the referral relationship, protecting both parties' interests, and maintaining regulatory compliance in the Indonesian business context.

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What is a Referral Partner Agreement?

The Referral Partner Agreement is essential for businesses operating in Indonesia who wish to expand their customer base or market reach through strategic partnerships. This document is particularly relevant in today's interconnected business environment, where companies increasingly rely on partner networks for growth. The agreement provides a legal framework compliant with Indonesian laws, including Law No. 7 of 2014 on Trade and Law No. 27 of 2020 on Personal Data Protection. It defines the terms under which partners can refer customers, sets commission structures, establishes data handling protocols, and outlines compliance requirements. This type of agreement is commonly used by companies seeking to establish formal referral networks, manage partner relationships, and ensure regulatory compliance while protecting both parties' interests in the referral process.

What sections should be included in a Referral Partner Agreement?

1. Parties: Identification of the principal company and the referral partner, including registration details as required by Indonesian law

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used in the agreement, including 'Referral', 'Qualified Lead', 'Services', and 'Commission'

4. Appointment and Scope: Terms of appointment of the referral partner and scope of referral services

5. Referral Process: Detailed process for making and tracking referrals, including qualification criteria

6. Partner Obligations: Responsibilities and commitments of the referral partner

7. Company Obligations: Responsibilities and commitments of the principal company

8. Commission Structure: Details of referral fees, calculation methods, and payment terms

9. Intellectual Property: Protection and usage rights of trademarks, logos, and marketing materials

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Compliance with Indonesian data protection laws and data handling requirements

12. Term and Termination: Duration of agreement and termination provisions

13. General Provisions: Standard legal clauses including governing law, dispute resolution, and notices

What sections are optional to include in a Referral Partner Agreement?

1. Training and Support: Used when the company provides specific training or support systems to partners

2. Marketing Guidelines: Include when partners are allowed to conduct marketing activities

3. Performance Targets: Used when implementing specific referral targets or KPIs

4. Territory Restrictions: Include when partners are assigned specific geographic areas

5. Non-Compete: Used when restricting partner's ability to work with competitors

6. Insurance Requirements: Include when partners need to maintain specific insurance coverage

7. Compliance with Anti-Corruption Laws: Detailed section when dealing with government contacts or high-risk sectors

8. Online Referral Platform: Include when using specific online tools or platforms for referral management

What schedules should be included in a Referral Partner Agreement?

1. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Referral Process Flowchart: Visual representation of the referral process and procedures

3. Approved Marketing Materials: Templates and guidelines for permitted marketing activities

4. Service Description: Detailed description of products/services eligible for referral

5. Reporting Templates: Standard forms for referral tracking and commission calculations

6. Data Processing Requirements: Specific procedures for handling customer data in compliance with Indonesian law

7. Territory Map: If applicable, geographical boundaries for referral activities

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

Jurisdiction

Indonesia

Document Type

Referral Agreement

Sector

Sales

Cost

Free to use

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