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The Consignment Sales Agreement is essential for businesses operating in Indonesia's retail and distribution sectors where products are sold through third-party sellers without transferring ownership until final sale. This document is particularly useful when manufacturers, wholesalers, or brand owners want to expand their market reach without establishing their own retail presence. The agreement must comply with Indonesian legal requirements, including the Civil Code (Kitab Undang-undang Hukum Perdata) and Commercial Code (Kitab Undang-undang Hukum Dagang). It typically includes detailed provisions for inventory management, sales reporting, commission calculations, and risk allocation. This type of agreement is commonly used in various retail sectors and provides flexibility while maintaining control over product pricing and presentation.

1. Parties: Identification of the Consignor (owner of goods) and Consignee (seller) with complete legal names and addresses

2. Background: Context of the agreement, business relationship, and general purpose of the consignment arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Consigned Goods', 'Sales Proceeds', 'Commission', etc.

4. Appointment and Scope: Terms of appointment of the Consignee and scope of authority to sell goods on behalf of the Consignor

5. Delivery and Receipt of Goods: Procedures for delivery, inspection, and acceptance of consigned goods

6. Pricing and Commission: Pricing guidelines for the goods and commission structure for the Consignee

7. Payment Terms: Terms for remittance of sales proceeds and payment of commission

8. Title and Risk: Clarification that title remains with Consignor until sale, and allocation of risk of loss

9. Obligations of Consignor: Responsibilities of the Consignor including product quality, documentation, and support

10. Obligations of Consignee: Responsibilities of the Consignee including storage, sales efforts, reporting, and handling of goods

11. Reporting and Records: Requirements for sales reports, inventory records, and financial accounting

12. Term and Termination: Duration of agreement and grounds for termination

13. Return of Unsold Goods: Procedures for returning unsold goods to Consignor

14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability