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Authorized Reseller Agreement for Indonesia

Authorized Reseller Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a product owner (Principal) and an authorized reseller. The document outlines the terms and conditions for the resale of products within specified territories in Indonesia, including rights, obligations, pricing structures, and compliance requirements with local trade regulations. It incorporates provisions from Indonesian trade laws, consumer protection regulations, and intellectual property rights, while establishing clear operational guidelines for both parties.

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What is a Authorized Reseller Agreement?

The Authorized Reseller Agreement is a crucial document for businesses looking to expand their distribution network in Indonesia through authorized resellers. This agreement is particularly important given Indonesia's complex distribution regulations and vast archipelagic geography. It defines the commercial relationship between the Principal (product owner) and the Reseller, incorporating requirements from Indonesian trade laws, including Law No. 7 of 2014 on Trade and relevant Ministry of Trade regulations. The agreement typically covers essential aspects such as territory rights, pricing policies, minimum purchase requirements, brand protection measures, and compliance with local regulations. It's commonly used when a company wants to maintain control over how its products are sold and distributed while expanding market reach through authorized channels.

What sections should be included in a Authorized Reseller Agreement?

1. Parties: Identification of the Principal/Supplier and the Authorized Reseller, including complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the Principal's business, products, and purpose of appointing the Reseller

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Appointment and Territory: Scope of reseller appointment, territorial limits, and exclusivity/non-exclusivity provisions

5. Term and Renewal: Duration of the agreement, conditions for renewal, and notice periods

6. Reseller Obligations: Core responsibilities including sales targets, marketing standards, customer service requirements, and reporting obligations

7. Principal's Obligations: Commitments regarding product supply, support, training, and marketing assistance

8. Ordering and Delivery: Procedures for placing orders, delivery terms, and minimum order requirements

9. Prices and Payment: Pricing structure, payment terms, currency, and price adjustment mechanisms

10. Intellectual Property Rights: Usage rights for trademarks, logos, and marketing materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. Post-Termination Obligations: Obligations surviving termination, including return of materials and settlement of accounts

14. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

What sections are optional to include in a Authorized Reseller Agreement?

1. E-commerce and Online Sales: Include when reseller will sell through online channels, addressing platform requirements and restrictions

2. Export Restrictions: Include when there's potential for cross-border sales, specifying prohibited territories

3. Product Training: Include for technical or complex products requiring specific training programs

4. Marketing Development Funds: Include when Principal provides marketing support funds or cost-sharing arrangements

5. Service Level Requirements: Include for products requiring after-sales service or technical support

6. Data Protection: Include when personal data processing is involved in the reseller relationship

7. Insurance Requirements: Include when specific insurance coverage is required for high-value or high-risk products

8. Warranty Handling: Include when reseller has specific warranty service obligations

9. Bank Guarantee: Include when financial security is required from the reseller

What schedules should be included in a Authorized Reseller Agreement?

1. Product List and Pricing Schedule: Detailed list of authorized products and corresponding price lists

2. Territory Map: Detailed description or map of authorized sales territory

3. Sales Targets: Quarterly or annual sales targets and performance metrics

4. Marketing Guidelines: Brand guidelines and approved marketing practices

5. Service Level Agreement: Detailed service standards and response time requirements

6. Authorized Locations: List of approved retail locations or sales channels

7. Return and Warranty Procedures: Detailed procedures for handling returns and warranty claims

8. Training Requirements: Required training programs and certification requirements

9. Reporting Templates: Standard forms for sales reports and performance tracking

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

Cost

Free to use
Relevant legal definitions













































Clauses









































Relevant Industries

Technology and Electronics

Consumer Goods

Automotive Parts and Accessories

Medical Devices

Industrial Equipment

Software and Digital Products

Fashion and Luxury Goods

Telecommunications

Construction Materials

Pharmaceuticals

Food and Beverage

Cosmetics and Personal Care

Relevant Teams

Legal

Sales

Commercial

Distribution

Compliance

Supply Chain

Business Development

Partner Management

Contract Administration

Brand Protection

Relevant Roles

Sales Director

Commercial Director

Channel Manager

Business Development Manager

Legal Counsel

Compliance Officer

Distribution Manager

Regional Sales Manager

Contract Administrator

Chief Commercial Officer

Partner Manager

Retail Operations Manager

Supply Chain Manager

Brand Protection 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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