The Independent Sales Rep Agreement is essential for companies operating in Indonesia who wish to expand their sales reach through independent contractors rather than direct employees. This document is particularly relevant in the Indonesian market where companies often rely on external sales representatives to penetrate diverse geographical regions and market segments. The agreement comprehensively covers critical aspects including commission structures, territorial rights, performance expectations, and compliance with Indonesian regulations such as Law No. 13 of 2003 on Manpower and Law No. 7 of 2014 on Trade. It's specifically designed to clearly establish an independent contractor relationship, avoiding any misclassification under Indonesian employment law while providing adequate protection for both the company's interests and the sales representative's rights.
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1. Parties: Identification of the Company and the Independent Sales Representative, including complete legal names and addresses
2. Background: Context of the agreement, including the company's business nature and desire to engage independent sales representatives
3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Customers', 'Commission', etc.
4. Appointment and Territory: Formal appointment of the representative and definition of the authorized sales territory
5. Independent Contractor Status: Clear establishment of independent contractor relationship and explicit disclaimer of employment relationship
6. Rights and Obligations of Sales Representative: Detailed responsibilities, performance standards, and conduct requirements
7. Company's Rights and Obligations: Company's commitments, support provisions, and product supply obligations
8. Commission Structure: Basic commission rates, calculation methods, and payment terms
9. Term and Termination: Duration of agreement, renewal terms, and grounds for termination
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
12. Intellectual Property: Usage rights of company trademarks, logos, and materials
13. Compliance with Laws: Obligation to comply with Indonesian laws, including anti-corruption and consumer protection
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
15. General Provisions: Standard clauses including amendments, notices, assignment, and severability
1. Performance Targets: Specific sales targets and performance metrics, used when the company wants to establish concrete goals
2. Training Requirements: Mandatory training programs and certifications, included when specific product knowledge is crucial
3. Marketing and Advertising: Guidelines for local marketing activities, included when rep has marketing responsibilities
4. Sub-Representatives: Terms for engaging sub-representatives, included when hierarchical sales structure is permitted
5. Insurance Requirements: Specific insurance coverage requirements, included for high-value products or regulated industries
6. Data Protection: Specific data handling requirements, included when dealing with personal customer data
7. Product Return Handling: Procedures for managing product returns, included for physical product sales
8. Expense Reimbursement: Terms for reimbursable expenses, included when company will cover certain costs
1. Schedule A - Products and Services: Detailed list of authorized products and services for sale
2. Schedule B - Commission Rates: Detailed commission structure, including any variations by product or customer type
3. Schedule C - Territory Description: Detailed description of geographic territory or customer segments
4. Schedule D - Sales Targets: Specific performance metrics and evaluation criteria
5. Schedule E - Approved Marketing Materials: List of authorized marketing materials and usage guidelines
6. Appendix 1 - Reporting Templates: Standard forms for sales reports and commission calculations
7. Appendix 2 - Company Policies: Relevant company policies that apply to sales representatives
8. Appendix 3 - Compliance Procedures: Detailed compliance requirements and procedures
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