Broker Agent Commission Agreement Template for Indonesia

The Broker Agent Commission Agreement is a crucial document for businesses operating in Indonesia that rely on intermediaries to facilitate transactions or generate business opportunities. This agreement is specifically designed to comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and relevant commercial regulations. It establishes the legal framework for commission-based relationships, defining how brokers or agents are compensated for successfully arranging transactions or securing business opportunities. The document is particularly important in Indonesia's business environment, where relationship-based business practices are common and require clear documentation of intermediary arrangements. It includes comprehensive provisions for commission calculations, payment terms, territorial rights, and compliance with local regulations, while addressing specific Indonesian legal requirements for agency relationships.

1. Parties: Identification of the Principal and the Broker, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the Principal's business, and the purpose of engaging the Broker

3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Services', 'Territory', and 'Successful Transaction'

4. Appointment and Scope: Terms of the Broker's appointment, exclusivity/non-exclusivity, and detailed description of authorized services

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

7. Payment Terms: Timeline for commission payments, payment methods, currency, and handling of taxes

8. Obligations of the Broker: Broker's duties, responsibilities, reporting requirements, and service standards

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

10. Representations and Warranties: Standard representations and warranties from both parties

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability