Document background
The Referral Agent Agreement is a crucial document for businesses operating in Indonesia who wish to expand their market reach through third-party referral networks. This agreement type is commonly used when a company (the Principal) wants to engage individuals or other businesses (the Agent) to refer potential customers or business opportunities in exchange for commission or other forms of compensation. The document is structured to comply with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations. It typically includes detailed provisions about the scope of referral services, commission structures, payment terms, compliance requirements, and operational procedures. The agreement is particularly important in the Indonesian market where business relationships often rely heavily on personal networks and introductions, while still requiring formal documentation to ensure legal compliance and protect both parties' interests.
