Finders Fee Agreement Template for Indonesia

A Finders Fee Agreement is a legal contract that formalizes the relationship between a principal company and an intermediary who assists in identifying business opportunities, potential partners, or clients in Indonesia. This document ensures compliance with Indonesian law while protecting both parties' interests in business introduction arrangements.

When do you need this document?

You need a Finders Fee Agreement when engaging business consultants, investment brokers, or independent agents to expand your business network in Indonesia. This document is essential if you're seeking introductions to potential joint venture partners, acquisition targets, or major clients through professional intermediaries. Companies operating in competitive markets often use these agreements to incentivize qualified professionals to bring high-value business opportunities. The agreement becomes particularly important when substantial fees are involved or when the finder has access to exclusive business networks that could significantly impact your company's growth.

Key legal considerations

Your Finders Fee Agreement must clearly define what constitutes a "successful introduction" to avoid payment disputes later. The fee structure should specify whether compensation is percentage-based, fixed amounts, or tiered according to deal value. Include exclusivity clauses if you want to prevent the finder from representing competitors during the agreement term. Anti-corruption provisions are crucial to ensure compliance with Indonesian laws, particularly when dealing with government-related business opportunities. The agreement should also address confidentiality requirements, as finders often gain access to sensitive business information during their work.

Legal requirements in Indonesia

Under Indonesian law, your Finders Fee Agreement must comply with the Indonesian Civil Code for contract formation and validity. The agreement falls under Law No. 7 of 2014 on Trade regarding business intermediary services, requiring proper documentation of commercial arrangements. Tax compliance is mandatory under Government Regulation No. 94 of 2010, which governs income calculation methods for fees and commissions. If your finder lacks proper business licensing, you must verify their compliance with Law No. 11 of 2020 on Job Creation regarding business activity requirements. Investment-related finder arrangements must also consider Law No. 25 of 2007 on Investment, particularly for foreign investment introductions. All fee payments are subject to Indonesian withholding tax requirements, and you must ensure proper tax reporting for both parties.