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Types of Distributors and Agents in IndonesiaMonday, November 17, 2014 > 08:49:13
In Indonesia the types of distributors and agents are differentiated in agents, sole agents, sub-agents, distributors, sole distributors and sub-distributors based on Ministry of Trade Regulation number 11/M-DAG/PER/3/2006 regarding the Provisions and Procedures for the Issuance of Registration Identity of Agents or Distributors of Goods and/or Services (Trade Regulation). In this column we will explain the exact difference between the above mentioned types of distributors and agents.
Differences between the Types of Distributors and Agents
The Trade Regulation differentiates the following types of distributors and agents in Indonesia:
1. Agent is an Indonesian domestic trading company that acts as an intermediary on behalf of the principal to perform marketing without being engaged in the physical transfer of goods and/or services which are owned and controlled by the principal.
2. Distributor is an Indonesian domestic national trading company acting for and on behalf of its own name based on an agreement to purchase, store, sale and market the owned/controlled goods and/or services.
3. Sole Agent/Sole Distributer is a national trading company which has obtained the exclusive rights from the principal as the sole agent/distributor in Indonesia or for certain marketing areas.
4. Sub Agent is a national trading company that acts as an intermediary on behalf of the principal through appointment of an agent or sole agent for performing marketing activities.
5. Sub Distributor is a national trading company that acts as an intermediary for and on its own behalf by appointment of a distributor or sole distributor for performing marketing activities.
Based on the foregoing an agent is mainly used for marketing purposes, since it cannot be engaged in the physical transfer and or storage of goods from the principal. The distributor is allowed to perform such activities and therefore has a wider scope of work.
Groups of Agents and Distributors in Indonesia
The different types of distributors and agents are each grouped based on their certificate of registration (Surat Tanda Pendaftaran [STP]) by the Trade Regulation as follows:
1. Yellow colored STP for all types of agents and distributors for goods produced abroad;
2. Red colored STP for all types of agents for production of services abroad and inside Indonesia;
3. Blue colored STP for all types of agents and distributors for production of goods inside Indonesia;
4. Green colored STP for the sole agent for fertilizer production.
In Indonesia there are many different kinds of agents and distributors and all need their specific establishment approach.
This column is provided by PNB Law Firm