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Sales Partner Agreement for Indonesia

Sales Partner Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a principal company and its sales partner. The document outlines the terms and conditions for the marketing, promotion, and sale of products or services within a specified territory in Indonesia. It addresses key aspects such as commission structures, performance targets, territorial rights, and compliance with Indonesian commercial regulations, including relevant provisions of the Indonesian Civil Code and trade regulations. The agreement includes specific provisions for dispute resolution, intellectual property protection, and adherence to local business practices while ensuring compliance with Indonesian partnership and distribution laws.

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Sales Partner Agreement

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What is a Sales Partner Agreement?

The Sales Partner Agreement is a crucial document for companies seeking to expand their market presence in Indonesia through local sales partnerships. This agreement type is particularly relevant in the Indonesian business context, where local partnership arrangements are often essential for effective market penetration. The document serves as a comprehensive framework for managing the principal-partner relationship, ensuring compliance with Indonesian regulations including the Civil Code, Trade Laws, and Anti-Monopoly provisions. It's commonly used when a company wants to leverage local expertise and networks without establishing their own sales force, defining everything from commission structures to territorial rights. The agreement must carefully consider Indonesian business culture and legal requirements, particularly regarding partnership arrangements, distribution rights, and local business practices.

What sections should be included in a Sales Partner Agreement?

1. Parties: Identification of the principal company and the sales partner, including complete legal names and addresses

2. Background: Context of the agreement, brief description of both parties' businesses, and purpose of the partnership

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Territory: Formal appointment of sales partner and definition of authorized territory

5. Rights and Obligations: Detailed responsibilities of both parties, including sales targets and support services

6. Products and Pricing: Details of products/services covered and pricing structure

7. Commission Structure: Commission rates, calculation methods, and payment terms

8. Term and Termination: Duration of agreement and conditions for termination

9. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition: Restrictions on competing activities during and after the agreement

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

What sections are optional to include in a Sales Partner Agreement?

1. Training and Support: Details of training programs and ongoing support - include if principal provides significant training

2. Marketing and Promotion: Marketing responsibilities and cost-sharing - include if joint marketing activities are planned

3. Insurance Requirements: Specific insurance coverage requirements - include for high-risk products or services

4. Data Protection: Data handling and privacy requirements - include if dealing with personal data

5. Force Majeure: Provisions for unforeseen circumstances - include if operating in volatile markets

6. Export Control: Export regulations compliance - include if international sales are involved

7. Anti-Corruption: Anti-bribery and corruption provisions - include if dealing with government sectors

What schedules should be included in a Sales Partner Agreement?

1. Schedule 1 - Product List: Detailed list of products/services covered under the agreement

2. Schedule 2 - Commission Rates: Detailed commission structure and calculation examples

3. Schedule 3 - Territory Map: Detailed description or map of authorized sales territory

4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics

5. Schedule 5 - Marketing Guidelines: Guidelines for use of trademarks and marketing materials

6. Appendix A - Reporting Templates: Standard forms for sales reports and commission calculations

7. Appendix B - Operating Procedures: Detailed operational procedures and processes

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

Cost

Free to use
Relevant legal definitions




































Clauses
































Relevant Industries

Manufacturing

Technology

Consumer Goods

Industrial Products

Automotive

Electronics

Healthcare

Telecommunications

Software and IT

Professional Services

Retail

Fast-Moving Consumer Goods (FMCG)

Construction Materials

Agricultural Products

Pharmaceuticals

Relevant Teams

Legal

Sales

Business Development

Commercial

Compliance

Operations

Finance

Marketing

International Business

Partner Relations

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

Channel Manager

Legal Counsel

Commercial Director

Partnership Manager

Country Manager

Chief Commercial Officer

Sales Operations Manager

Compliance Officer

Contract Manager

Regional Sales Manager

Managing Director

Chief Executive Officer

Distribution Manager

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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