Exclusive Manufacturing And Distribution Agreement Template for Indonesia

The Exclusive Manufacturing And Distribution Agreement is essential for businesses seeking to establish controlled manufacturing and distribution channels in Indonesia. It is particularly relevant when a company wants to maintain quality control and market presence through exclusive arrangements. The document complies with Indonesian regulations, including Law No. 3 of 2014 on Industry and Law No. 7 of 2014 on Trade, while addressing anti-monopoly considerations under Law No. 5 of 1999. This agreement type is commonly used when companies want to protect their intellectual property, maintain product standards, and ensure market control through exclusive manufacturing and distribution rights. It includes comprehensive provisions for production specifications, quality standards, territorial rights, minimum performance requirements, and compliance obligations specific to the Indonesian market.

1. Parties: Identification of the manufacturer and distributor, including full legal names and addresses

2. Background: Context of the agreement, including brief description of each party's business and their intentions

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Products, Territory, and Exclusive Rights

4. Appointment and Scope: Terms of exclusive appointment, territory definition, and scope of manufacturing and distribution rights

5. Manufacturing Rights and Obligations: Detailed manufacturing requirements, quality standards, and production commitments

6. Distribution Rights and Obligations: Distribution terms, minimum purchase requirements, and sales territories

7. Quality Control: Quality assurance procedures, inspection rights, and compliance with standards

8. Intellectual Property Rights: Protection and usage of trademarks, patents, and other IP during manufacturing and distribution

9. Pricing and Payment Terms: Manufacturing costs, distribution pricing structure, and payment conditions

10. Minimum Performance Requirements: Production volumes, sales targets, and consequences of non-achievement

11. Term and Termination: Duration of agreement, renewal terms, and termination conditions

12. Confidentiality: Protection of confidential information and trade secrets

13. Warranties and Indemnities: Product warranties, liability provisions, and indemnification obligations

14. Force Majeure: Provisions for unforeseen circumstances affecting performance

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