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The Agent Appointment Agreement is a critical document used when a business (Principal) wishes to authorize another party (Agent) to act on its behalf in Indonesia. This agreement is particularly important given Indonesia's complex business landscape and specific legal requirements for agency relationships. The document must comply with Indonesian Civil Code (KUHPer) provisions on agency (pemberian kuasa), the Law on Trade, and relevant ministerial regulations. It typically includes detailed provisions on territory rights, commission structures, performance requirements, and compliance obligations. The agreement is essential for businesses expanding their reach in Indonesia through agents, ensuring clear authority delegation while maintaining control over business relationships and brand representation.

1. Parties: Identification of the Principal and Agent, including full legal names, registration numbers, and addresses

2. Background: Context of the appointment, nature of the Principal's business, and purpose of the agency relationship

3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, Commission, and other relevant terms

4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and detailed scope of authority

5. Territory: Geographic area where the Agent is authorized to act

6. Duration: Term of the agreement, including commencement date and any renewal provisions

7. Agent's Rights and Obligations: Detailed responsibilities, performance standards, and reporting requirements

8. Principal's Rights and Obligations: Support to be provided, information sharing, and other obligations of the Principal

9. Commission Structure: Calculation method, payment terms, and conditions for commission

10. Intellectual Property: Usage rights and restrictions regarding Principal's trademarks and other IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

13. Termination: Grounds for termination, notice requirements, and consequences

14. Post-Termination Obligations: Obligations surviving termination, including handover requirements

15. Governing Law and Dispute Resolution: Indonesian law provisions and dispute resolution mechanisms

16. General Provisions: Standard clauses including force majeure, notices, and amendments