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Sales Rep Contract for Indonesia

Sales Rep Contract Template for Indonesia

This document is a comprehensive Sales Representative Contract governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower and related commercial regulations. It establishes the terms and conditions of engagement between a company and its sales representative, covering essential elements such as appointment terms, territory rights, commission structures, performance targets, and compliance requirements. The contract includes provisions for both employee and independent contractor relationships, incorporating necessary safeguards for confidentiality, non-competition, and data protection in accordance with Indonesian legal requirements.

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What is a Sales Rep Contract?

The Sales Rep Contract is essential for businesses operating in Indonesia that engage sales representatives to promote and sell their products or services. This document is designed to comply with Indonesian employment and commercial laws, particularly Law No. 13 of 2003 on Manpower and related regulations. It is used when companies need to formalize relationships with sales representatives, whether as employees or independent contractors, and includes comprehensive provisions for territory assignments, commission structures, performance metrics, and compliance requirements. The contract addresses key aspects such as sales targets, reporting obligations, confidentiality, and post-termination restrictions, while ensuring alignment with local legal requirements for employment relationships and commercial representation.

What sections should be included in a Sales Rep Contract?

1. Parties: Identification of the company and the sales representative, including full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and territory/product scope assignment

5. Representatives Duties and Responsibilities: Detailed outline of the sales representative's obligations and responsibilities

6. Company's Obligations: Company's commitments to support the sales representative

7. Compensation and Commission: Base salary (if applicable), commission structure, and payment terms

8. Sales Targets and Performance: Required sales targets, KPIs, and performance evaluation criteria

9. Compliance and Ethics: Compliance with laws, regulations, and company policies

10. Confidentiality: Protection of company's confidential information

11. Term and Termination: Duration of agreement and termination provisions

12. Post-Termination Obligations: Obligations after contract termination including non-compete and client transition

13. General Provisions: Standard legal clauses including governing law, notices, and amendments

What sections are optional to include in a Sales Rep Contract?

1. Employment Status: Specific section clarifying employment status when representative is an independent contractor

2. Team Leadership: Include when the representative has team management responsibilities

3. International Sales: Additional provisions for cross-border sales activities

4. Intellectual Property: Specific IP provisions when the role involves product development or marketing content creation

5. Training Requirements: Detailed training obligations when specific certifications or qualifications are required

6. Data Protection: Additional data protection requirements when handling sensitive customer data

7. Non-Solicitation: Restrictions on soliciting company employees or customers, if applicable

8. Insurance: Insurance requirements when representative needs to maintain specific coverage

What schedules should be included in a Sales Rep Contract?

1. Schedule 1 - Territory and Products: Detailed description of assigned sales territory and product lines

2. Schedule 2 - Commission Structure: Detailed commission calculations, rates, and payment terms

3. Schedule 3 - Sales Targets: Specific sales targets and KPI measurements

4. Schedule 4 - Reporting Requirements: Templates and timing for sales reports and documentation

5. Schedule 5 - Company Policies: Relevant company policies and procedures

6. Appendix A - Expense Policy: Guidelines for reimbursable expenses and claiming procedures

7. Appendix B - Customer Account List: List of assigned customer accounts if applicable

8. Appendix C - Sales Tools and Materials: List of company-provided sales tools, materials, and equipment

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

Sale Agreement

Cost

Free to use
Relevant legal definitions

























































Clauses













































Relevant Industries

Retail

Technology

Manufacturing

Pharmaceuticals

Consumer Goods

Financial Services

Industrial Equipment

Telecommunications

Real Estate

Professional Services

Healthcare

Automotive

Food and Beverage

Construction Materials

Energy

Relevant Teams

Sales

Legal

Human Resources

Compliance

Finance

Operations

Commercial

Business Development

Account Management

Sales Operations

Sales Administration

Relevant Roles

Sales Representative

Regional Sales Manager

Territory Manager

Account Executive

Business Development Manager

Sales Director

Key Account Manager

Inside Sales Representative

Field Sales Representative

Sales Operations Manager

Commercial Director

Channel Sales Manager

Product Specialist

Sales Team Leader

Chief Commercial Officer

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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