# Consignment Agreement for Indonesia > Use this template to create a Consignment Agreement that complies with your chosen governing law **Document type:** Consignment Agreement **Category:** Agreements & Contracts **Jurisdiction:** Indonesia **Governing law:** Indonesia **Last updated:** 2026-08-12 ## What is a Consignment Agreement? A Consignment Agreement lets a business owner (consignor) place their goods with another party (consignee) to sell them without transferring ownership. Under Indonesian Commercial Code, the consignee acts as an agent, selling items on behalf of the consignor while earning a commission on each sale. These agreements are common in Indonesian retail, especially for fashion boutiques, art galleries, and specialty stores. The contract must specify commission rates, payment terms, and handling of unsold items - following local commercial regulations. It protects both parties by clearly outlining responsibilities for inventory care, insurance, and sales reporting. ## When should you use a Consignment Agreement? Use a Consignment Agreement when you want to sell products through another business without giving up ownership. This arrangement works perfectly for Indonesian artists placing artwork in galleries, fashion designers selling through boutiques, or manufacturers testing new products in retail stores without major inventory investments. The agreement becomes essential when dealing with high-value items or expanding into new markets. It protects your interests under Indonesian commercial law by clearly defining commission structures, payment terms, and liability for damaged goods. Many small businesses use consignment to build retail presence while maintaining control over their inventory and pricing. ## What are the different types of Consignment Agreement? - **[Consignment Contract](https://www.genieai.co/en-id/template/consignment-contract)**: Basic agreement covering essential terms and commission structures, suitable for most business relationships - **[Consignment Stock Agreement](https://www.genieai.co/en-id/template/consignment-stock-agreement)**: Focuses on inventory management and storage requirements, ideal for wholesale arrangements - **[Consignment Inventory Agreement](https://www.genieai.co/en-id/template/consignment-inventory-agreement)**: Detailed tracking and reporting provisions for complex inventory systems - **[Clothing Consignment Contract](https://www.genieai.co/en-id/template/clothing-consignment-contract)**: Tailored for fashion retail with specific care and display requirements - **[Consignment Contract For Artists](https://www.genieai.co/en-id/template/consignment-contract-for-artists)**: Specialized terms for artwork sales, including copyright and authenticity provisions ## Who should typically use a Consignment Agreement? - **Product Owners (Consignors)**: Manufacturers, artists, designers, and craftspeople who want to sell goods through established retail channels without direct investment - **Retail Stores (Consignees)**: Boutiques, galleries, and specialty shops that display and sell consigned items for a commission - **Legal Advisors**: Business lawyers who draft and review Consignment Agreements to ensure compliance with Indonesian commercial regulations - **Store Managers**: Responsible for maintaining inventory records, handling sales, and ensuring proper care of consigned items - **Accountants**: Track sales, commissions, and tax implications for both consignor and consignee under Indonesian tax laws ## How do you write a Consignment Agreement? - **Basic Details**: Gather complete business information for both consignor and consignee, including tax registration numbers and business licenses - **Product Information**: List items with detailed descriptions, quantities, retail prices, and commission percentages - **Timeline**: Define the agreement duration, payment schedules, and inventory rotation periods - **Risk Management**: Determine insurance requirements, damage policies, and security measures for consigned goods - **Legal Compliance**: Our platform generates customized Consignment Agreements that meet Indonesian commercial law requirements while protecting both parties' interests - **Documentation**: Prepare inventory tracking forms, sales reporting templates, and payment reconciliation sheets ## What should be included in a Consignment Agreement? - **Party Details**: Full legal names, addresses, and business registration numbers of both consignor and consignee - **Product Description**: Detailed inventory list, pricing terms, and commission structure as required by Indonesian Commercial Code - **Duration & Termination**: Agreement period, renewal terms, and conditions for early termination - **Risk Allocation**: Clear provisions for loss, damage, theft, and insurance requirements - **Payment Terms**: Commission rates, settlement periods, and reporting requirements - **Legal Framework**: Reference to Indonesian law, dispute resolution procedures, and governing jurisdiction - **Compliance Elements**: Our platform automatically includes all mandatory clauses required under Indonesian commercial regulations ## What's the difference between a Consignment Agreement and an Agency Agreement? A Consignment Agreement differs significantly from an Agency Agreement in several key aspects, though both involve one party representing another's interests in sales transactions under Indonesian law. - **Ownership Structure**: In consignment, the consignor retains full ownership until items are sold, while agency agreements typically don't involve physical possession of goods - **Risk Allocation**: Consignment agreements place inventory risk primarily on the consignor, whereas agents bear minimal product risk - **Payment Model**: Consignees earn commission only on actual sales, while agents may receive fixed fees plus commission - **Scope of Authority**: Consignees are limited to selling specific inventory items, but agents often have broader powers to negotiate and represent the principal - **Legal Relationship**: Under Indonesian Commercial Code, consignment creates a limited sales relationship, while agency agreements establish broader representative authority ## Templates in this category - [Clothing Consignment Contract](https://www.genieai.co/en-id/template/clothing-consignment-contract) - [Consignment Contract](https://www.genieai.co/en-id/template/consignment-contract) - [Consignment Contract For Artists](https://www.genieai.co/en-id/template/consignment-contract-for-artists) - [Consignment Inventory Agreement](https://www.genieai.co/en-id/template/consignment-inventory-agreement) - [Consignment Stock Agreement](https://www.genieai.co/en-id/template/consignment-stock-agreement) --- This is the Markdown representation of [https://www.genieai.co/en-id/template-type/consignment-agreement](https://www.genieai.co/en-id/template-type/consignment-agreement), provided for AI agents and crawlers. 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