Introducer Agreement Commission Template for Indonesia

An Introducer Agreement Commission is a specialized contract that governs the relationship between a company and an individual or entity who refers potential clients or business opportunities in exchange for commission-based compensation. Under Indonesian law, these arrangements must comply with strict regulatory frameworks to ensure transparency, prevent corruption, and meet financial services requirements.

When do you need this document?

You need an Introducer Agreement Commission when your business relies on third-party referrals to generate leads, clients, or sales opportunities. This is particularly common in financial services, real estate, insurance, and professional services sectors where introducers play a vital role in business development. The agreement becomes essential when you want to formalize compensation arrangements with sales agents, business development partners, or referral networks who are not direct employees. In Indonesia's regulated business environment, having a written agreement protects both parties from potential legal disputes and ensures compliance with anti-corruption laws that require transparent documentation of all commercial relationships.

Key legal considerations

Several critical legal elements must be carefully addressed in your agreement. The commission structure requires precise definition, including calculation methods, payment triggers, and withholding tax obligations under Indonesian tax law. You must clearly distinguish between employee and independent contractor relationships to avoid employment law complications under Law No. 13 of 2003. Anti-corruption compliance is paramount, ensuring commission arrangements are legitimate business payments and not disguised bribes under Law No. 31 of 1999. The agreement should include termination clauses, confidentiality provisions, and dispute resolution mechanisms that comply with Indonesian Civil Code requirements. Performance standards, reporting obligations, and quality control measures help maintain professional standards and regulatory compliance.

Legal requirements in Indonesia

Indonesian law imposes specific requirements on commission-based agreements that you must incorporate into your contract. Under the Indonesian Civil Code (KUH Perdata), all contracts must meet fundamental validity requirements including legal capacity, lawful object, and proper consideration. Financial services introducers must comply with OJK Regulation No. 35/POJK.05/2015, which governs contractual arrangements in the financial sector. Tax compliance under Law No. 7 of 2014 requires proper withholding and reporting of commission payments. The agreement must clearly define the scope of services to ensure compliance with trade regulations and prevent unauthorized business activities. Documentation requirements include proper identification of all parties, authorized representatives, and witness signatures where required by Indonesian contract law. Regular review and updates ensure ongoing compliance with evolving regulatory requirements.