Document background
The Commission Contract Agreement is essential for businesses operating in Indonesia that wish to engage sales representatives, agents, or distributors on a commission basis. This document type is commonly used when a company (the principal) wants to expand its sales reach without directly employing additional sales staff, instead engaging independent agents who earn compensation based on successful sales. The agreement must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant commercial regulations, while clearly defining the commission structure, sales territories, and performance expectations. It's particularly important to structure the Commission Contract Agreement to properly distinguish it from an employment agreement under Indonesian labor law, establishing clear independent contractor status where appropriate. The document should address key aspects such as commission calculations, payment terms, reporting requirements, and tax considerations specific to the Indonesian market.
