The Agency Representation Agreement is a crucial document for companies seeking to establish or maintain a commercial presence in Indonesia through authorized representatives. This document is particularly important given Indonesia's complex regulatory environment and specific legal requirements for agency relationships. The agreement typically covers essential aspects such as appointment terms, territorial rights, commission structures, and compliance with local regulations. It's commonly used when a company (Principal) wants to engage a local representative (Agent) to promote their products or services, negotiate deals, or represent their interests in the Indonesian market. The agreement must comply with Indonesian law, including the Civil Code (KUHPer), Commercial Code (KUHD), and relevant ministerial regulations governing agency relationships. It's essential for protecting both parties' interests and ensuring clear understanding of rights, obligations, and operational parameters within the Indonesian legal framework.
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1. Parties: Identification of the Principal and Agent, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agency relationship, brief description of the Principal's business, and purpose of the agreement
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 represent the Principal
6. Duration and Renewal: Term of the agreement, including commencement date and renewal provisions
7. Agent's Rights and Obligations: Comprehensive list of the Agent's responsibilities, duties, and rights
8. Principal's Rights and Obligations: Principal's commitments, support obligations, and rights
9. Commission Structure: Details of commission rates, calculation methods, and payment terms
10. Reporting Requirements: Regular reporting obligations of the Agent to the Principal
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition: Restrictions on competing activities during and after the agreement
13. Termination: Grounds for termination, notice requirements, and consequences
14. Post-Termination Obligations: Obligations of both parties after the agreement ends
15. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
16. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intellectual Property Rights: Specific provisions for IP usage and protection, needed when the Agent will be using Principal's trademarks or other IP
2. Performance Targets: Specific sales or performance targets, include when the agency relationship is performance-based
3. Training and Support: Details of training and support provided by Principal, include when significant product/service knowledge is required
4. Marketing and Promotion: Specific marketing obligations and restrictions, include when Agent has marketing responsibilities
5. Sub-Agents: Rights and restrictions regarding appointment of sub-agents, include when sub-agents might be needed
6. Insurance Requirements: Specific insurance obligations, include for high-risk products or services
7. Compliance with Local Laws: Specific compliance requirements, include when dealing with regulated industries
8. Force Majeure: Provisions for unforeseen circumstances, include when long-term or high-value relationship
1. Schedule 1: Products/Services: Detailed list of products or services covered by the agency agreement
2. Schedule 2: Commission Rates: Detailed commission structure, including any variations by product/service type
3. Schedule 3: Territory Details: Detailed description of geographic territories, including any exclusions
4. Schedule 4: Performance Criteria: Specific performance metrics and evaluation criteria
5. Schedule 5: Reporting Templates: Standard formats for regular reporting requirements
6. Schedule 6: Operating Procedures: Detailed operational procedures and requirements
7. Appendix A: Power of Attorney: Formal power of attorney document if required under Indonesian law
8. Appendix B: Company Registrations: Copies of relevant company registration documents and licenses
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Technology
Pharmaceutical
Industrial Equipment
Automotive
Construction Materials
Agricultural Products
Financial Services
Professional Services
Telecommunications
Energy
Chemical Products
Medical Devices
Retail
Software and IT
Relevant Teams
Legal
Commercial
Business Development
Sales
Operations
Compliance
International Business
Corporate Affairs
Contract Administration
Risk Management
Channel Management
Business Operations
Relevant Roles
Chief Executive Officer
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Contract Manager
Country Manager
Regional Director
Managing Director
Operations Manager
Compliance Officer
Sales Manager
Distribution Manager
Channel Partner Manager
General Manager
Corporate Secretary
Chief Legal Officer
Business Development Director
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