The Intermediary Fee Agreement is a crucial document used in Indonesian business transactions where a company or individual (the principal) engages another party (the intermediary) to facilitate business opportunities, transactions, or relationships. This agreement type is particularly important in the Indonesian market, where local knowledge and connections are often essential for business success. The document must comply with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata), Law No. 7 of 2014 on Trade, and relevant anti-corruption legislation. It typically includes detailed provisions on service scope, fee calculations, payment terms, compliance requirements, and dispute resolution mechanisms. The agreement is designed to protect both parties' interests while ensuring transparency and legal compliance in intermediary relationships.
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1. Parties: Identifies and provides full details of the principal and the intermediary, including registration numbers and addresses
2. Background: Sets out the context of the agreement, including the principal's business needs and intermediary's expertise
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Appointment and Scope: Details the formal appointment of the intermediary and specific scope of services to be provided
5. Term and Termination: Specifies the duration of the agreement and circumstances for termination
6. Fee Structure: Clearly outlines the fee calculation method, payment terms, and conditions for fee entitlement
7. Payment Terms: Details the mechanism, timing, and currency of payments, including any applicable taxes
8. Obligations of the Intermediary: Lists the intermediary's duties, responsibilities, and performance standards
9. Obligations of the Principal: Specifies the principal's responsibilities and commitments
10. Compliance and Anti-Corruption: Sets out compliance requirements with Indonesian laws and anti-corruption measures
11. Confidentiality: Establishes confidentiality obligations for both parties
12. Representations and Warranties: Contains standard representations and specific warranties from both parties
13. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and outlines dispute resolution procedures
14. General Provisions: Includes standard boilerplate clauses such as force majeure, notices, and amendments
1. Exclusivity: Include when the intermediary is granted exclusive rights in specific territories or for specific services
2. Performance Targets: Add when specific performance metrics or targets are required for fee entitlement
3. Insurance: Include when specific insurance requirements are needed based on service risk level
4. Intellectual Property: Add when the services involve use or creation of intellectual property
5. Data Protection: Include when personal data processing is involved in the services
6. Foreign Exchange Compliance: Add for cross-border transactions requiring compliance with Indonesian forex regulations
7. Training and Support: Include when the principal needs to provide specific training or support to the intermediary
8. Sub-contractors: Add when the intermediary may need to engage sub-contractors or sub-agents
1. Schedule 1 - Service Description: Detailed description of services to be provided by the intermediary
2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure, including examples of calculations
3. Schedule 3 - Territory: Definition and maps of territorial scope for intermediary services
4. Schedule 4 - Compliance Procedures: Detailed compliance requirements and procedures
5. Schedule 5 - Required Reports: Templates and requirements for activity reporting
6. Appendix A - Contact Details: Key contact persons and their details for both parties
7. Appendix B - Required Documentation: List of documents required for fee claims and compliance
8. Appendix C - Code of Conduct: Specific conduct requirements for the intermediary
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