DISTRIBUTION SCHEME

Minister of Trade Regulation No. 11/M-DAG/PER/3/2006 concerning Provisions and Guideline on The
Issuance of Distributor / Agent Registration Letter ("Permendag 11/2016")

Indirect Distribution Scheme (Distributor & Network)

Principale Producer

Distributor / Sub- Principale

Agent / Sub-Agent
distributor Supplier

Agent / Sub- Distributor / Sub-

Agent distributor

LEGEND :

Direct distribution Process

Indirect distribution process

DESCRIPTION & OVERVIEW :

1. General Provision on Distribution by Distributor & Network

a. Producere Principale is individual or business entity in the form of legal entity or non legal entity, having status as
producere which appoints other business entities as agent, sole agent, distributor or sole distributor to sell goods
resulting from the production of the principal. Which means Producere principal is allowed to conduct direct
distribution scheme using Distributor or agent;

b. Supplier Principal is individual or business entity in the form of legal entity or non legal entity appointed by
Producere Principal to appoint other business entity as agent, sole agent, distributor or sole distributor in
accordance with the rights & obligations granted by the Producere Principale. Which means Producere Principal will
conduct indirect distribution procedure trough Supplier Principal and Distributor / agent;

c. Every national trading company making agreement with Producere Principal (Distributor, Sub-Distributor, Agent,
Sub-Agent) shall registered to Ministry of Trade to obtain Distributor Registration Letter ("Surat Tanda Pendaftaran /
STP")
 d. Specifically for foreign investment company ("PMA") which engaged in the field of Distributor in order to conduct its
trading activity shall i) appoint a national company to act as agent or distributor, ii) the Appointment must be in the
form of agreement and legalize by public notary, and iii) The Appointment agreement shall have the approval from
Producere Principal.

2. STP Requirement
a. Agreement which legalized by public notary and certified by trading attache of Republic Indonesia in principal
countries;

b. Corporate legal document (AoA, business license, TDP, NPWP, Domicile);

c. Import document (API, NIK)

3. Sanction
a. Company which failed to comply with the regulation will be impose by Administrative Sanction as follows i) Warning
Letter, ii) Froze the business license, and iii) Revoked the business license.
tributor / Sub-
distributor

entity, having status as

distributor to sell goods
d to conduct direct

tity appointed by
le distributor in
ns Producere Principal will

Sub-Distributor, Agent,
Surat Tanda Pendaftaran /
utor in order to conduct its
pointment must be in the
l have the approval from

donesia in principal

ction as follows i) Warning