Document background
The Seller and Agent Agreement is a crucial document for businesses expanding their distribution networks in Indonesia through commercial agents. It is commonly used when a company (the Principal) wishes to appoint an agent to market and sell their products or services in specific Indonesian territories without establishing their own direct sales presence. The agreement must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant commercial regulations. It typically covers essential elements such as appointment terms, territorial rights, commission structures, performance targets, and reporting requirements. This document is particularly important in the Indonesian market where working through local agents is often a preferred market entry strategy for both domestic and international companies. The agreement provides legal protection for both parties while clearly defining their respective rights, obligations, and commercial terms.
