Agency Client Contract Template for Indonesia

The Agency Client Contract is a crucial document for businesses operating in Indonesia who wish to appoint representatives to act on their behalf in various commercial activities. This type of agreement is particularly important in the Indonesian market, where many international and domestic companies rely on agents to expand their business reach. The contract must comply with Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations, including Government Regulation No. 42 of 2007 on franchise and agency businesses. It typically includes detailed provisions on the agent's authority, territorial restrictions, commission structures, performance expectations, and compliance requirements. The document is essential for protecting both parties' interests while ensuring the agency relationship operates within the framework of Indonesian law.

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

2. Background: Context of the agency relationship, business objectives, and general intent of the parties

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

4. Appointment and Scope: Formal appointment of the agent 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, duties, and rights of the agent

8. Principal's Rights and Obligations: Detailed responsibilities, duties, and rights of the principal

9. Commission and Payment Terms: Commission structure, calculation method, payment terms, and currency

10. Reporting and Accounting: Requirements for financial reporting, record-keeping, and accounting

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

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition: Restrictions on competitive activities during and after the agreement

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

15. Post-Termination: Obligations and rights of parties after agreement termination

16. Governing Law: Specification of Indonesian law as governing law

17. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

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