Broker Agreement for Indonesia

Broker Agreement Template for Indonesia

This Broker Agreement template is designed for use under Indonesian law and establishes the legal relationship between a principal and a broker/intermediary. The document comprehensively covers the appointment of the broker, scope of services, commission structures, and compliance requirements in accordance with Indonesian regulations, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant sector-specific legislation. It includes provisions for regulatory compliance, risk allocation, and dispute resolution mechanisms specifically tailored to the Indonesian legal framework, while maintaining flexibility to accommodate various industries and transaction types.

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What is a Broker Agreement?

The Broker Agreement is a crucial legal document used in Indonesian business transactions to formalize the relationship between a principal and a broker or intermediary. This document is essential when a company or individual wishes to engage a broker to facilitate transactions, find customers, or represent their interests in specific markets. The agreement must comply with Indonesian law, particularly the Civil Code and sector-specific regulations such as the Law No. 7 of 2014 on Trade and relevant OJK regulations for financial services. The document covers key aspects including broker authorization, territory rights, commission structures, compliance requirements, and dispute resolution mechanisms. It's particularly important in regulated industries where specific licensing and compliance requirements apply, and can be customized for various sectors from real estate to financial services.

What sections should be included in a Broker Agreement?

1. Parties: Identification of the principal and the broker, including full legal names, registration numbers, and addresses

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

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

4. Appointment and Scope: Formal appointment of the broker and detailed description of authorized services and territories

5. Broker's Rights and Obligations: Detailed listing of the broker's responsibilities, duties, and rights under the agreement

6. Principal's Rights and Obligations: Obligations and rights of the principal, including information provision and support requirements

7. Commission Structure: Detailed description of commission rates, calculation methods, and payment terms

8. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

9. Confidentiality: Provisions regarding handling of confidential information and trade secrets

10. Compliance: Requirements for regulatory compliance, licenses, and permits

11. Representations and Warranties: Standard representations and specific warranties from both parties

12. Liability and Indemnification: Limitation of liability provisions and mutual indemnification obligations

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

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

What sections are optional to include in a Broker Agreement?

1. Non-Competition: Restrictions on broker's ability to represent competing principals - include when exclusivity is required

2. Performance Targets: Specific performance metrics and consequences - include when minimum performance standards are needed

3. Marketing and Promotion: Terms regarding marketing activities and brand usage - include when broker will conduct marketing

4. Insurance: Insurance requirements and coverage specifications - include for high-value transactions or regulated industries

5. Data Protection: Specific data handling and privacy requirements - include when personal data processing is involved

6. Force Majeure: Provisions for unforeseen circumstances - include when long-term or high-value relationship

7. Anti-Corruption: Specific anti-corruption and compliance provisions - include when dealing with government or regulated sectors

What schedules should be included in a Broker Agreement?

1. Commission Schedule: Detailed breakdown of commission structures, rates, and calculation methods

2. Territory Schedule: Definition of geographical areas or market segments covered by the agreement

3. Products/Services Schedule: Detailed list of products or services covered under the brokerage arrangement

4. Required Licenses and Permits: List of specific regulatory requirements and necessary documentation

5. Performance Metrics: Detailed performance criteria and measurement methods

6. Standard Operating Procedures: Specific procedures for order processing, reporting, and communication

7. Approved Marketing Materials: Templates and guidelines for marketing and promotional materials

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Real Estate

Insurance

Commodities Trading

Securities Trading

Import/Export

Logistics

Agricultural Products

Manufacturing

Energy

Mining

Technology Services

Telecommunications

Professional Services

Retail

Relevant Teams

Legal

Compliance

Sales

Business Development

Operations

Finance

Risk Management

Procurement

Commercial

Strategic Partnerships

Regulatory Affairs

Contract Administration

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Sales Director

Legal Counsel

Compliance Officer

Contract Manager

Risk Manager

Operations Director

Chief Financial Officer

Procurement Manager

Regional Sales Manager

Channel Partner Manager

Strategic Alliance Manager

Broker Relations Manager

General Counsel

Regulatory Affairs 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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