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Agency Client Contract for Indonesia

Agency Client Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a principal and an agent. This document outlines the terms under which the agent will represent and act on behalf of the principal in specified business activities within Indonesia. It encompasses key elements such as scope of authority, territory, commission structure, obligations of both parties, and compliance with Indonesian commercial and agency laws. The agreement includes specific provisions required under Indonesian Civil Code and relevant commercial regulations, while addressing practical aspects of the agency relationship such as reporting requirements, performance standards, and dispute resolution mechanisms.

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What is a Agency Client Contract?

The Agency Client Contract is a crucial document for businesses operating in Indonesia who wish to appoint representatives to act on their behalf in various commercial activities. This type of agreement is particularly important in the Indonesian market, where many international and domestic companies rely on agents to expand their business reach. The contract must comply with Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations, including Government Regulation No. 42 of 2007 on franchise and agency businesses. It typically includes detailed provisions on the agent's authority, territorial restrictions, commission structures, performance expectations, and compliance requirements. The document is essential for protecting both parties' interests while ensuring the agency relationship operates within the framework of Indonesian law.

What sections should be included in a Agency Client Contract?

1. Parties: Identification of the Principal and the Agent, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agency relationship, business objectives, and general intent of the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the agent and detailed scope of authority

5. Territory: Geographic area where the agent is authorized to act

6. Duration: Term of the agreement, including commencement date and any renewal provisions

7. Agent's Rights and Obligations: Detailed responsibilities, duties, and rights of the agent

8. Principal's Rights and Obligations: Detailed responsibilities, duties, and rights of the principal

9. Commission and Payment Terms: Commission structure, calculation method, payment terms, and currency

10. Reporting and Accounting: Requirements for financial reporting, record-keeping, and accounting

11. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Restrictions on competitive activities during and after the agreement

14. Termination: Grounds for termination, notice requirements, and consequences

15. Post-Termination: Obligations and rights of parties after agreement termination

16. Governing Law: Specification of Indonesian law as governing law

17. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

18. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

What sections are optional to include in a Agency Client Contract?

1. Performance Targets: Specific sales or performance targets, used when the agency relationship is performance-based

2. Marketing and Promotion: Requirements for marketing activities, included when agent has marketing responsibilities

3. Training Requirements: Training obligations and standards, needed when principal provides product/service training

4. Insurance: Insurance requirements, included when specific coverage is needed for high-risk activities

5. Bank Guarantee: Requirements for bank guarantees or other financial security, used in high-value contracts

6. Sub-Agents: Terms for appointing sub-agents, included when sub-agency is permitted

7. Data Protection: Specific data protection obligations, needed when handling personal or sensitive data

8. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions, important for international operations

9. Foreign Exchange Compliance: Currency conversion and forex compliance, relevant for international payments

What schedules should be included in a Agency Client Contract?

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

2. Product/Service List: Comprehensive list of products or services covered by the agency

3. Territory Map: Detailed map or description of the authorized territory

4. Reporting Templates: Standard formats for required regular reports

5. Performance Metrics: Detailed KPIs and measurement criteria

6. Trademark Usage Guidelines: Guidelines for use of principal's trademarks and branding

7. Standard Operating Procedures: Detailed operational procedures and requirements

8. Compliance Checklist: List of regulatory requirements and compliance procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions





















































Clauses















































Relevant Industries

Retail

Manufacturing

Import/Export

Real Estate

Insurance

Financial Services

Technology

Telecommunications

Consumer Goods

Professional Services

Automotive

Healthcare

Tourism

Agriculture

Construction

Energy

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Compliance

Risk Management

Finance

Agency Relations

Channel Management

Distribution

Corporate Affairs

International Business

Relevant Roles

Chief Executive Officer

Managing Director

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contract Manager

Agency Relations Manager

Operations Director

Regional Manager

Country Manager

Sales Manager

Channel Manager

Distribution Manager

Compliance Officer

Risk Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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