Car Dealer Contract Template for Indonesia

A Car Dealer Contract is a comprehensive legal agreement that establishes the relationship between vehicle manufacturers or distributors and their authorized dealers in Indonesia. This document creates the framework for selling and servicing vehicles within designated territories while ensuring compliance with Indonesian automotive regulations and consumer protection laws.

When do you need this document?

You need a Car Dealer Contract when establishing a new vehicle dealership, renewing an existing dealer agreement, or expanding dealership operations to new territories in Indonesia. This agreement is essential for manufacturers seeking to appoint authorized dealers, distributors looking to expand their network, or entrepreneurs wanting to become official vehicle dealers. The contract is also required when changing dealership ownership, modifying territorial boundaries, or updating service obligations to meet evolving regulatory requirements. Banks and investors often require this document when financing dealership operations or acquisitions.

Key legal considerations

Your Car Dealer Contract must address several critical legal elements to protect both parties and ensure enforceability. Territory exclusivity clauses define your geographical sales rights and prevent conflicts with other dealers in your area. Sales targets and performance metrics establish minimum sales volumes and customer service standards you must maintain to retain your dealership rights. Warranty and after-sales service obligations specify your responsibilities for vehicle maintenance, repairs, and customer support under Indonesian consumer protection laws. Intellectual property provisions govern your use of manufacturer trademarks, logos, and marketing materials. Termination clauses outline conditions under which either party can end the agreement, including notice periods and post-termination obligations such as inventory buyback and facility requirements.

Legal requirements in Indonesia

Indonesian law imposes specific requirements on Car Dealer Contracts that you must incorporate to ensure compliance and enforceability. Under Law No. 8 of 1999 on Consumer Protection, your agreement must clearly define warranty obligations, product quality standards, and dispute resolution mechanisms for vehicle sales. Government Regulation No. 55 of 2012 on Vehicles requires compliance with technical standards, vehicle registration procedures, and type approval requirements for new vehicles. Ministry of Industry Regulation No. 34/M-IND/PER/3/2015 governs automotive industry operations and establishes specific requirements for dealership licensing and operations. Your contract must also comply with Law No. 40 of 2007 on Limited Liability Companies if your dealership operates as a PT company, including proper corporate governance and reporting requirements. Additionally, Law No. 22 of 2009 on Traffic and Road Transportation affects vehicle registration and transfer procedures that impact your dealership operations.