The Supplier Rebate Agreement is essential for businesses operating in Indonesia that wish to establish formal rebate arrangements with their suppliers or customers. This document type is commonly used when parties want to incentivize bulk purchasing or reward customer loyalty through structured rebate programs. The agreement must comply with Indonesian commercial law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and Trade Law (Undang-Undang Perdagangan). A well-drafted Supplier Rebate Agreement includes clear rebate calculation methodologies, qualifying criteria, payment terms, and compliance requirements, while ensuring transparency in line with Indonesian anti-monopoly regulations. It's particularly relevant for businesses engaged in regular, high-volume transactions where rebates form a significant part of the commercial relationship.
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1. Parties: Identification of the supplier and recipient, including their complete legal names, registration numbers, and addresses
2. Background: Context of the rebate arrangement, existing business relationship, and purpose of the agreement
3. Definitions and Interpretation: Definitions of key terms including 'Rebate Period', 'Qualifying Purchases', 'Rebate Rate', 'Net Purchase Value' and interpretation rules
4. Rebate Structure: Details of how rebates are calculated, qualifying criteria, and applicable rates
5. Calculation Period: Specification of the time periods for which rebates will be calculated and frequency of calculations
6. Payment Terms: Process and timing for rebate payments, including payment method and currency
7. Record Keeping and Audit Rights: Obligations regarding maintenance of records and right to audit calculations
8. Confidentiality: Provisions protecting confidential information shared between parties
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures
11. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Volume Commitments: Used when the rebate is tied to specific purchase volume commitments
2. Marketing and Promotion: Include when the rebate agreement includes marketing support or promotional requirements
3. Product Quality Standards: Required when rebates are contingent on maintaining certain quality standards
4. Exclusivity Provisions: Include when the rebate arrangement is tied to exclusive purchasing commitments
5. Compliance with Anti-Corruption Laws: Detailed section needed for high-value agreements or when dealing with government-linked entities
6. Force Majeure: Include detailed force majeure provisions when supply chain disruptions could impact rebate calculations
7. Tax Provisions: Detailed tax clauses needed when rebate arrangements have complex tax implications
1. Schedule 1 - Rebate Calculation Methodology: Detailed formulas and examples of rebate calculations
2. Schedule 2 - Qualifying Products: List of products or services that qualify for rebates
3. Schedule 3 - Rebate Rates and Thresholds: Detailed breakdown of rebate percentages and applicable purchase thresholds
4. Schedule 4 - Reporting Template: Standard format for rebate calculations and reports
5. Schedule 5 - Claim Form: Template for submitting rebate claims
6. Appendix A - Contact Details: List of key contacts for both parties for various aspects of the agreement
7. Appendix B - Compliance Documentation: Required compliance certificates and documentation under Indonesian law
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