The Broker Carrier Agreement serves as a fundamental legal instrument in Indonesia's transportation and logistics sector, establishing the framework for collaboration between freight brokers and transportation carriers. This document is essential when a broker wishes to formalize its relationship with carriers who will provide transportation services to the broker's shipping clients. It encompasses crucial elements required under Indonesian law, including compliance with Law No. 22 of 2009 on Road Traffic and Transportation, Government Regulation No. 74 of 2014, and relevant Ministry of Transportation regulations. The agreement typically includes detailed provisions on service standards, operational procedures, payment terms, insurance requirements, and liability allocation, while ensuring adherence to local regulatory requirements for transportation services and commercial relationships.
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1. Parties: Identification of the broker and carrier, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, including the broker's business of connecting shippers with carriers and the carrier's business of providing transportation services
3. Definitions: Key terms used throughout the agreement, including technical and operational terminology
4. Scope of Services: Detailed description of services to be provided by both parties, including broker's matching services and carrier's transportation services
5. Carrier Obligations: Specific responsibilities of the carrier, including compliance with regulations, maintenance of vehicles, and service standards
6. Broker Obligations: Specific responsibilities of the broker, including payment terms, load information provision, and communication requirements
7. Payment Terms: Details of compensation, payment schedules, invoicing procedures, and payment methods
8. Insurance and Liability: Insurance requirements, allocation of risks, and liability limitations
9. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
10. Compliance with Laws: Requirements to comply with Indonesian transportation and commercial laws
11. Confidentiality: Protection of confidential information and trade secrets
12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
13. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Electronic Systems and Data Protection: Required when the broker uses digital platforms or electronic systems for booking and tracking
2. Specialized Cargo Handling: Needed when dealing with hazardous materials, temperature-controlled goods, or other special cargo
3. Cross-Border Operations: Required for carriers operating international routes
4. Subcontracting: Include when the carrier is permitted to subcontract transportation services
5. Performance Metrics: Include when specific performance standards and measurements are required
6. Equipment Leasing: Required when the agreement includes provision or leasing of equipment
7. Force Majeure: Optional but recommended section detailing circumstances beyond parties' control
1. Schedule A - Rate Card: Detailed pricing structure, including base rates, surcharges, and special fees
2. Schedule B - Service Areas: Geographic areas covered by the carrier's services
3. Schedule C - Vehicle Fleet Details: List of approved vehicles, including specifications and capacity
4. Schedule D - Insurance Requirements: Specific insurance types and coverage amounts required
5. Schedule E - Operating Procedures: Detailed procedures for booking, documentation, and delivery
6. Schedule F - Performance Standards: Specific metrics and KPIs for measuring service quality
7. Appendix 1 - Required Documents: List of required licenses, permits, and certifications
8. Appendix 2 - Contact Information: Key personnel and emergency contact details for both parties
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