Document background
The Consignment Inventory Agreement is a crucial document for businesses operating under Indonesian law who wish to establish a consignment relationship where one party (Consignor) maintains ownership of goods while another party (Consignee) holds and sells them. This arrangement is particularly common in retail, manufacturing, and distribution sectors where businesses want to expand their market presence without the need for outright purchase of inventory. The agreement addresses key aspects such as inventory management, sales procedures, commission structures, and risk allocation, while ensuring compliance with Indonesian regulations including the Civil Code (KUHPerdata) and trade laws. It provides essential protection for both parties by clearly defining responsibilities, payment terms, and operational procedures, making it an essential tool for businesses engaged in consignment-based trading relationships in Indonesia.
