The Sales Referral Agreement is essential for businesses operating in Indonesia who wish to expand their customer base through formal referral partnerships. This document is commonly used when a company wants to engage independent parties or other businesses to refer potential customers in exchange for commission-based compensation. The agreement ensures compliance with Indonesian commercial law, including the Civil Code (KUH Perdata) and relevant trade regulations. It typically includes comprehensive details about commission structures, qualification criteria for referrals, payment terms, and tax implications under Indonesian law. The document also addresses key compliance areas such as anti-corruption measures, data protection, and proper business conduct. This type of agreement is particularly important in the Indonesian market where business relationships often rely on personal networks and introductions, while still requiring formal legal documentation to protect all parties' interests.
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1. Parties: Identification of the Principal Company and the Referrer, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, nature of the Principal's business, and purpose of the referral arrangement
3. Definitions: Key terms used throughout the agreement, including 'Qualified Referral', 'Commission', 'Territory', and 'Products/Services'
4. Appointment and Scope: Terms of appointment, territory coverage, and whether the appointment is exclusive or non-exclusive
5. Referrer's Obligations: Key responsibilities including lead generation, information sharing, and professional conduct requirements
6. Principal's Obligations: Responsibilities including support, training, and information provision to the Referrer
7. Commission Structure: Details of commission rates, calculation methods, and payment terms
8. Payment Terms: Timeline for payments, currency, payment methods, and handling of taxes
9. Term and Termination: Duration of the agreement and circumstances for termination
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: Compliance with Indonesian data protection laws and handling of customer information
12. Non-Solicitation: Restrictions on soliciting employees or customers
13. Governing Law: Specification of Indonesian law as governing law and jurisdiction
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue
1. Non-Compete: Restrictions on Referrer's ability to work with competitors (optional as may not be enforceable in all circumstances)
2. Intellectual Property: Use of trademarks and marketing materials (if Referrer will use Principal's IP)
3. Insurance: Requirements for professional liability insurance (if dealing with high-value transactions)
4. Performance Targets: Minimum performance requirements (if specific targets are needed)
5. Training and Support: Detailed provisions for training and support (if extensive support is provided)
6. Marketing Guidelines: Rules for marketing and promotion (if Referrer will conduct marketing activities)
7. Force Majeure: Provisions for unforeseen circumstances preventing performance
8. Assignment: Rights to assign the agreement (if transferability is important)
9. Compliance with Anti-Corruption Laws: Detailed anti-corruption provisions (if dealing with government or high-risk sectors)
1. Commission Structure: Detailed breakdown of commission rates, tiers, and special rates for different products/services
2. Products and Services: List of products/services covered by the referral arrangement
3. Territory Definition: Detailed description of geographical or market segment coverage
4. Referral Process: Step-by-step process for making and tracking referrals
5. Reporting Templates: Standard forms for reporting referrals and tracking commissions
6. Marketing Guidelines: Approved marketing materials and usage guidelines
7. Code of Conduct: Ethical guidelines and compliance requirements
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