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Commission Fee Agreement for Indonesia

Commission Fee Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for commission-based business relationships between a principal and an agent or representative. The document outlines commission rates, payment terms, performance expectations, and compliance requirements in accordance with Indonesian commercial regulations, particularly the Civil Code (KUHPerdata) and relevant trade laws. It includes essential provisions for commission calculation methods, payment schedules, territorial rights, and obligations of both parties while ensuring compliance with local tax regulations and anti-corruption laws.

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What is a Commission Fee Agreement?

The Commission Fee Agreement serves as a crucial legal instrument in Indonesian business relationships where one party (the principal) agrees to pay commission fees to another party (the agent) for specified services or sales achievements. This document is essential when establishing formal commission-based relationships in Indonesia, whether for sales representatives, business development agents, or distribution partners. It must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), trade regulations, and tax laws. The agreement typically includes detailed commission structures, performance metrics, territorial rights, and compliance obligations, making it suitable for both domestic and international business arrangements operating within Indonesian jurisdiction. It's particularly important for protecting both parties' interests and ensuring clarity in commission-based commercial relationships.

What sections should be included in a Commission Fee Agreement?

1. Parties: Identification of the principal and agent/commissioner, including their complete legal names, registration numbers, and addresses

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

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Services', 'Territory', and 'Customers'

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of services

5. Commission Structure: Base commission rates, calculation methods, and qualifying transactions

6. Payment Terms: Commission payment schedule, currency, payment methods, and bank details

7. Obligations of Principal: Principal's responsibilities, including providing necessary information and support

8. Obligations of Agent: Agent's duties, performance standards, and reporting requirements

9. Term and Termination: Duration of agreement, renewal terms, and termination conditions

10. Confidentiality: Protection of confidential information and trade secrets

11. Compliance: Compliance with laws, anti-corruption provisions, and regulatory requirements

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

13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Commission Fee Agreement?

1. Non-Competition: Restrictions on agent's activities with competitors, used when protecting market share is crucial

2. Intellectual Property: IP rights and usage terms, included when brand names or proprietary information is involved

3. Performance Targets: Specific sales or performance goals, included when commission is tied to performance metrics

4. Training and Support: Details of training provided by principal, included for complex products or services

5. Insurance: Insurance requirements for agent, included when services involve significant risks

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain market conditions

7. Data Protection: Data handling requirements, included when personal or sensitive data is processed

8. Marketing and Branding: Guidelines for marketing activities, included when agent represents principal's brand

What schedules should be included in a Commission Fee Agreement?

1. Schedule 1: Commission Rates: Detailed breakdown of commission rates, including any tiered structures or special rates

2. Schedule 2: Territory: Detailed description of geographical areas or market segments covered

3. Schedule 3: Products/Services: List of products or services covered by the agreement

4. Schedule 4: Performance Metrics: Detailed KPIs and measurement criteria

5. Schedule 5: Reporting Templates: Standard forms for periodic reporting and commission calculations

6. Appendix A: Bank Details: Banking information for commission payments

7. Appendix B: Contact Details: Key contact persons and communication protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Fee Agreement

Cost

Free to use
Relevant legal definitions














































Clauses













































Relevant Industries

Retail

Real Estate

Financial Services

Insurance

Manufacturing

Technology

Consumer Goods

Professional Services

Telecommunications

Export/Import

Automotive

Healthcare

Construction

Energy

Relevant Teams

Legal

Sales

Business Development

Finance

Compliance

Commercial Operations

Revenue Operations

Partnerships

Contract Administration

Tax

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Chief Revenue Officer

Sales Operations Manager

Channel Manager

Agency Relations Manager

Legal Counsel

Compliance Officer

Finance Director

Contract Manager

Regional Sales Manager

Commission Administrator

Chief Financial Officer

Head of Partnerships

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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