Broker Referral Agreement Template for Indonesia

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Key Requirements PROMPT example:

Broker Referral Agreement

"I need a Broker Referral Agreement for my Indonesian fintech company that will engage independent brokers to refer small business clients for our lending platform, with a tiered commission structure and specific compliance requirements for financial services."

Document background
The Broker Referral Agreement serves as a crucial legal framework for businesses operating in Indonesia who wish to formalize their referral partnerships. This document is essential when companies seek to expand their client base or business opportunities through third-party referrals while maintaining legal compliance and clear operational guidelines. It becomes particularly relevant in scenarios where regular business referrals are expected and commission-based compensation is involved. The agreement must comply with Indonesian legal requirements, including the Civil Code (Kitab Undang-undang Hukum Perdata) and trade regulations, while addressing specific aspects such as commission structures, payment terms, and referral processes. The document is designed to protect both parties' interests while ensuring transparency and enforceability under Indonesian law.
Suggested Sections

1. Parties: Identification of the referring party (broker) and the recipient party, including their legal details and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Commission', 'Qualified Lead', etc.

4. Appointment and Scope: Terms of broker appointment and scope of referral services

5. Referral Process: Detailed process for making and accepting referrals

6. Commission Structure: Terms of payment, commission rates, and calculation methods

7. Payment Terms: Timeline and method of commission payments, including tax considerations

8. Obligations of the Broker: Broker's responsibilities, including compliance with laws and ethical conduct

9. Obligations of the Recipient: Recipient's responsibilities regarding referrals and payment

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of agreement and circumstances for termination

12. Representations and Warranties: Parties' assurances regarding authority, compliance, and capability

13. Limitation of Liability: Boundaries of parties' liability and indemnification provisions

14. General Provisions: Standard clauses including notices, amendments, governing law, etc.

Optional Sections

1. Non-Competition: Restrictions on broker's ability to refer to competitors, used when exclusivity is required

2. Data Protection: Specific provisions for handling personal data, required when dealing with individual customer information

3. Training and Support: Details of any training or support provided to the broker, included when comprehensive onboarding is needed

4. Marketing Guidelines: Rules for using recipient's branding and marketing materials, included when broker will engage in marketing activities

5. Dispute Resolution: Specific procedures for resolving disputes, including mediation or arbitration, used for high-value agreements

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain business environments

7. Compliance with Anti-Money Laundering Laws: Detailed compliance requirements, necessary for financial service referrals

Suggested Schedules

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule B - Referral Process Workflow: Step-by-step process flow for making and processing referrals

3. Schedule C - Required Documentation: List of documents required for valid referrals

4. Schedule D - Reporting Templates: Standard forms for tracking and reporting referrals

5. Appendix 1 - Compliance Checklist: Checklist of regulatory requirements and compliance procedures

6. Appendix 2 - Contact Details: Key contact information for both parties

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Real Estate

Insurance

Banking

Investment Services

Professional Services

Technology

Telecommunications

Business Consulting

Healthcare

Education

Manufacturing

Export/Import

Logistics

Construction

Relevant Teams

Legal

Business Development

Sales

Compliance

Operations

Finance

Partner Relations

Commercial

Risk Management

Corporate Secretariat

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Chief Commercial Officer

Legal Counsel

Compliance Officer

Partnership Manager

Broker Relations Manager

Business Agent

Independent Broker

Sales Manager

Account Executive

Chief Executive Officer

Operations Manager

Contract Administrator

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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