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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.

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