Document background
The International Agency Agreement is essential for foreign companies seeking to establish a commercial presence in Indonesia through local representation. This document is particularly crucial given Indonesia's complex regulatory environment and specific requirements for foreign business relationships. It is commonly used when a foreign company (Principal) wants to appoint an Indonesian entity (Agent) to promote and sell their products or services, negotiate deals, or represent their interests in the Indonesian market. The agreement must comply with Indonesian law, including regulations on agency relationships, foreign investment restrictions, and mandatory use of the Indonesian language in commercial contracts. Key contents include agency scope, territorial rights, commission structures, compliance requirements, and dispute resolution mechanisms. The document should be carefully drafted to ensure enforceability under Indonesian law while protecting both parties' interests in the cross-border relationship.
