Document background
The Supply And Distribution Agreement is a critical commercial contract used when a supplier or manufacturer wishes to establish a formal distribution channel for their products in Indonesia. This document is essential for businesses expanding their market presence in Indonesia, requiring careful consideration of local laws including the Indonesian Civil Code, Law No. 7 of 2014 on Trade, and relevant ministerial regulations. The agreement typically includes detailed provisions on supply arrangements, distribution rights, territorial exclusivity, pricing structures, quality standards, and compliance requirements. It's particularly important in the Indonesian context due to specific local requirements for distribution arrangements, foreign investment restrictions, and territorial distribution rights. The document serves as the primary framework for managing the ongoing relationship between suppliers and their distribution partners, ensuring clear understanding of rights, obligations, and operational procedures while maintaining compliance with Indonesian regulatory requirements.
