Registration Of An Agent, Distributor Or Sole Distributor Of Domestic And Offshore Goods And Services

In line with the implementation of Government Regulation of the Republic of Indonesia pertaining registration of an agent, distributors or sole distributors of domestic and/or offshore goods and services, it is deemed necessary to take measures as follows :

1. Any national trading company appointed as an agent, distributor or sole distributor of goods and services originating from home country and abroad shal be granted a Certificate of Registration issued by Director of the Trade Facilities Development, Directorate General for Domestic Trade, Ministry of Trade of the Republic of Indonesia .

2. The Certificate of Registration shall be granted upon request for registration application form to be an agent, distributor or sole distributor provided free of charge.

3. The application form of registration to be an agent, distributor or sole distributor shall be enclosed with :

a). Letter of Appointment (2 original & 2 copies) from the principal manufacturer or principal supplier (in this case, Malaysian company) which is ratified by Notary Public, Ministry of Foreign Affairs Malaysia.

b). Distributorship agreement (2 original & 2 copies ) between the principal manufacturer or principal supplier (in this case, Malaysian company) and an agent, distributor or sole distributor (in this case, Indonesian company) which is ratified by Notary Public, Ministry of Foreign Affairs Malaysia.

c). Copy of Memorandum and Article of Association (MNA) (2 full sets) of principal manufacturer or principal supplier (in this case, Malaysian company) which is ratified by Company Commission of Malaysia (CCM).

d). Letter of acceptance to be an agent, distributor or sole distributor in Indonesia.

e). Copy of Trading Operation License (Surat Izin Usaha Perdagangan/SIUP) of Indonesian company.

f). Covering Letter

Attention to :

4. The Certificate of Registration can only be granted to one agent, distributor or sole distributor appointed for the same type of goods from certain brand within a certain marketing region. If there are more than one agent, distributor or sole distributor appointed by the manufacturer or supplier, the Certificate of Registration shall be granted to the first applicant.

The Letter of Appointment as referred to in ad. 3 a). to the above shall at least contains :

a). Name and address of the principal manufacturer or principal supplier.

b). Name and address of the agent, distributor or sole distributor.

c). Type or kinds and brand of goods.

d). Marketing region.

e). Period of appointment.

f). Full name and title of the signatory of the appointment.

The distributorship agreement shall at least contains :

a). Name and address of the principal manufacturer or principal supplier.

b). Name and address of the agent, distributor or sole distributor.

c). Type or kinds and brand of goods.

d). Marketing region.

e). Rights and obligations of respective parties.

f). Terms of agreement termination and settlement of dispute.

g). Period of agreement.

h). Full name and title of the signatory of the distributorship agreement of respective parties.

5. When appointment of an agent, distributor or sole distributor in Indonesia made by principal supplier but not principal manufacturer, it is necessary to have an approval letter or Power of Attorney or Letter of Authorization from the principal manufacturer stating that the principal supplier may appoint any agent, distributor or sole distributor for the said products in Indonesia.

6. The letter of appointment and/or distributorship agreement shall be signed by the competent person in the company for that purpose.

7. The letter of appointment of an agent, distributor or sole distributor by principal manufacturer or principal supplier shall minimally be valid for 2 years and the Cerificate of Agency, Distributorship or Sole Distributorship shall be valid for 3 years.

8. The valid period of the Certificate of Registration shall be adjusted to the period of appointment of an agent, distributor or sole distributor, minimally for 2 years and the extension thereof shall be based on the agency, distributorship or sole distributorship agreement.

9. The termination between a manufacturer or supplier and an agent, distributor or sole distributor prior to the expiry of the Certificate of Registration can only be made upon the agreement of both parties in writing by due observance to the clean breaks.

9. The agent, distributor or sole distributor registration shall be conducted by the Trade Facilities Development, Directorate General for Domestic Trade, Ministry of Industry and Trade of the Republic of Indonesia.

Note : Incomplete submission of the above requirement will not be accepted.