Private Equity Finders Fee Agreement Template for Indonesia

When you're operating in Indonesia's private equity market, a Private Equity Finders Fee Agreement serves as your legal foundation for engaging intermediaries who can identify investment opportunities or connect you with qualified investors. This specialized contract protects both your interests and those of professional finders while ensuring compliance with Indonesia's comprehensive investment regulations.

When do you need this document?

You'll need this agreement whenever you're seeking to engage third-party intermediaries to expand your investment network or deal flow. Investment holding companies commonly use these agreements when entering new market segments where local expertise is crucial. Fund managers rely on them when launching new funds that require connections with high-net-worth individuals or institutional investors. Corporate finance advisory firms use these documents when they need specialized sector knowledge or geographic reach beyond their existing capabilities. The agreement becomes particularly important when your finder will be introducing potential investors to your fund or when you're seeking access to family offices and sovereign wealth funds that require trusted intermediary relationships.

Key legal considerations

Your agreement must clearly define what constitutes a "successful introduction" and establish measurable criteria for fee entitlement. The fee structure should specify whether compensation is percentage-based, flat fee, or tiered according to investment amounts. You need robust confidentiality clauses protecting sensitive investment information and investor details. The document should include representations and warranties from both parties, particularly regarding the finder's authority to make introductions and your ability to pay agreed fees. Termination clauses must address scenarios including breach of contract, regulatory changes, or completion of the engagement scope. Most critically, you need provisions addressing potential conflicts of interest and ensuring the finder's independence in making introductions.

Legal requirements in Indonesia

Under Indonesian law, your agreement must comply with Law No. 25 of 2007 on Investment, which governs both domestic and foreign private equity activities. The Financial Services Authority (OJK) Regulation No. 35/POJK.04/2020 requires that any intermediary services in investment activities meet specific licensing and conduct standards. Your finder may need to register with OJK depending on the scope of services provided. The Indonesian Civil Code governs the contractual framework, requiring clear terms and lawful consideration. Income Tax Law No. 36 of 2008 mandates proper tax treatment of finder's fees, including withholding obligations for payments to both domestic and foreign finders. Additionally, Law No. 8 of 2010 on Prevention and Eradication of Money Laundering requires due diligence procedures for all parties involved in financial transactions. Your agreement should include compliance representations and indemnification clauses addressing these regulatory requirements to ensure enforceability and protect against regulatory violations.