Sales Representative in Indonesia

Overview by

Commercial Intermediaries

Trading Companies
  • Type of Organization
As there is no law governing the place where they set up business, many large retailers are located in the heart of big cities and compete with the smaller retailers. Marketing and importing are reserved for Indonesian companies. If you do not have a representative office, you need a good agent to export goods.
  • Main Actors
Among others, there is a national company, the Indonesia Trading Company, of the group PT Perusahaan Perdagangan Indonesia (PERSERO), and the French company specialized in importing all goods in containers Asia Trading Center.
  • Type of Organization
Marketing and importing are reserved for Indonesian companies. Manufacturing firms whose capital is mostly foreign are authorized to sell on the Indonesian market as wholesalers; these companies can import freely if their exports are greater than their imports. In general, industrial importers are not specialized and import a range of complementary goods.
  • Main Actors
ExBali, Emporium Indonesia, Anindo, Indofurn
Useful Resources
Ministry of Commerce

Using a Commercial Agent

The Advantages
Using a local agent is strongly recommended. He knows the local context better, the cultural subtleties and administrative processes. Contacts and personal networks, just as important as formal relations, will be established more easily thanks to a local intermediary.
Where to Be Vigilant
You should choose an agent with the greatest care. His skills, references, reliability and his interest in the product must be checked. If not, getting out of an awkward situation can turn out to be long and expensive. Having trust and respect is of prime importance.
Elements of Motivation
The amount of commission is an important factor in the agent's motivation.
The Average Amount of Commission
Commission of 5 to 10% is generally granted.
Breach of Contract
The contract may be terminated if the company is dissolved, if the company ceases trading, if the agency and distribution rights are transfered, if the company is bankrupt, if the contract is not extended. The terms for breach of contract must be specified in the agency and distribution contract.
Finding a Commercial Agent
NAFED, National Agency for Export Development
Global Representation
Find Sales and Distribution Service Providers in Indonesia on

Setting Up a Commercial Unit

The Advantages
Setting up a commercial representation allows a company to gain a foothold in Indonesian reality at an affordable price.
Where to Be Vigilant
This move supposes you have a long term view of the commercial commitments undertaken.
Different Possible Forms of Settlement
  • A Representative Office
A moderate setting up, a representative office allows you to benefit from an intermediary who ensures promotional support, finding new customers, exploring new markets, and updating headquarters. For financial companies, a representative office carries out promotion, studies, counselling. In the construction sector, he carries out market research, takes part in tenders, offers consulting services to the authorities, works on a project until it is finished (however, this last possibility obliges the company or the foreign research consultancy to enter into a local partnership, in the form of a "Joint operation").
  • A Branch Office
Apart from the banking sector, branch offices of foreign companies are not allowed to set up business in Indonesia.
  • A Company
The Perseroan Terbatas (PT), which is a limited liability company, is the most common form of company and the only one accessible to foreigners, according to the law on foreign investment.


Evolution of the Sector
A franchise is set up by a written agreement in Indonesian and is subject to the laws of Indonesia. This agreement, which is valid for at least 10 years, must be registered with the Ministry of Commerce by the franchisee within 30 days from the date of the agreement's coming into force. A franchised company which does not follow the instructions laid down by the law, in spite of three warnings, is subject to sanctions which can go as far as withdrawing the license (SIUPP) necessary to trade. The franchiser must have the following elements appear in the agreement which binds him to the franchisee:
- the information relative to his professional activity;
- the right to use the intellectual property relative to the object of the association between the two parties;
- the requirements which the franchisee must observe;
- the assistance and the facilities which the franchiser puts at the franchisee's disposal;
- the rights and obligations of the franchisee and the franchiser;
- the other points which the franchisee must know.
Some Big Franchises
MacDonald's, fast food
Swensen's Ice Cream, fast food
Burger King, fast food
Dunkin' Donuts, fast food
Berlitz, language courses
Body Shop, cosmetics
For Further Information
Ministry of Commerce and Industry

Finding Assistance

Export Trading Companies
PT PPI, Indonesia trading company
Indo traders
Find more on about Selling to Indonesia.

Any Comments About This Content? Report It to Us.

Read more See less
Hot Tips (2)
  • Selling Factors/Techniques in Indonesia

    Indonesian consumers, particularly from middle and lower-income groups, are sensitive both to price and to general economic trends (for example, interest rates).

    U.S. Commercial Service Poland on 2 Mar 2010 related to Sales Representative in Indonesia

  • Establishing An Office In Indonesia

    The Indonesian Investment Coordinating Board (BKPM) attempts to operate as a one-stop shop for investors. Recent reforms have reduced the paperwork process and delays in applying for the necessary government permits for foreign investments in Indonesia.

    U.S. Commercial Service Poland on 1 Mar 2010 related to Sales Representative in Indonesia

Post your content


Post content about Sales Representative in Indonesia and you will be listed here to receive requests for offers.

Contact our expert contributor
  • U.S. Commercial Service Poland

    U.S. Department Of Commerce, Indonesia