The Sales Representative Contract is a crucial document used when a company wishes to engage individuals or entities to promote and sell their products or services in Indonesia. This agreement is essential for businesses expanding their sales operations in the Indonesian market, requiring careful consideration of local laws including the Indonesian Civil Code, Law No. 13 of 2003 on Manpower, and relevant trade regulations. The contract typically covers commission structures, territorial rights, performance metrics, and compliance requirements. It's particularly important in Indonesia's business context where relationship-based selling is prevalent and local market knowledge is valuable. The document must balance commercial flexibility with regulatory compliance, including proper classification of the representative's status under Indonesian employment law.
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1. Parties: Identification of the Principal company and the Sales Representative, including their legal status and registered addresses
2. Background: Context of the agreement and brief description of the business relationship to be established
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Scope: Formal appointment of the representative and definition of their role and territory
5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
6. Duties and Responsibilities: Detailed obligations of the Sales Representative, including sales targets, reporting requirements, and professional conduct
7. Principal's Obligations: Company's commitments, including product information, support, and training
8. Commission Structure: Calculation method, payment terms, and conditions for commission earnings
9. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP
10. Confidentiality: Non-disclosure obligations and handling of confidential information
11. Non-Competition: Restrictions on competing activities during and after the agreement
12. Compliance: Obligation to comply with laws, anti-corruption regulations, and company policies
13. Dispute Resolution: Process for handling disagreements, including jurisdiction and applicable law
14. General Provisions: Standard clauses including notices, amendments, and severability
1. Exclusivity: Terms of exclusive representation rights, used when granting exclusive territory or customer segments
2. Performance Targets: Specific sales targets and consequences of meeting/missing them, used for performance-based agreements
3. Insurance: Requirements for professional liability insurance, used when representative handles high-value transactions
4. Sub-agents: Terms for appointing sub-agents, used when allowing delegation of duties
5. International Sales: Additional terms for cross-border sales, used when territory includes multiple countries
6. Product Training: Detailed training requirements and procedures, used for technical or complex products
7. Marketing Support: Terms regarding marketing materials and support, used when representative handles promotion
8. Customer Service: Post-sale service obligations, used when representative handles customer support
1. Schedule A - Products: List of products/services the representative is authorized to sell
2. Schedule B - Territory: Detailed description of geographical territory or customer segments
3. Schedule C - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule D - Sales Targets: Specific performance metrics and evaluation criteria
5. Schedule E - Reporting Templates: Standard forms for sales reports and activity tracking
6. Schedule F - Company Policies: Relevant company policies including code of conduct and compliance requirements
7. Appendix 1 - Power of Attorney: If required under Indonesian law for specific representative actions
8. Appendix 2 - Training Requirements: Detailed training programs and certification requirements
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