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Charter Agreement for Indonesia

Charter Agreement Template for Indonesia

A Charter Agreement under Indonesian law is a specialized maritime contract that establishes the terms and conditions for the hire of a vessel. This document is governed by Indonesian maritime law, particularly Law No. 17 of 2008 on Shipping and the Indonesian Commercial Code (KUHD). It outlines the responsibilities and obligations of both the vessel owner and charterer, including operational control, payment terms, trading limits within Indonesian waters, maintenance requirements, and compliance with local maritime regulations. The agreement incorporates specific provisions required by Indonesian law while adhering to international maritime practices.

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What is a Charter Agreement?

A Charter Agreement serves as the primary contractual instrument for vessel hiring arrangements in maritime commerce. This document type is essential when a party needs to hire a vessel for commercial purposes, whether for a specific voyage or a defined period. Under Indonesian jurisdiction, the agreement must comply with Law No. 17 of 2008 on Shipping and related maritime regulations, while also considering international shipping practices. The Charter Agreement covers crucial aspects such as vessel specifications, hire rates, operational responsibilities, trading limits, and regulatory compliance. It's particularly important in Indonesia's archipelagic context, where maritime transport plays a vital role in domestic and international trade. The document provides legal protection for both vessel owners and charterers while ensuring compliance with Indonesian maritime safety and commercial requirements.

What sections should be included in a Charter Agreement?

1. Parties: Identification of the shipowner/disponent owner and charterer, including their full legal names, registration details, and addresses

2. Background: Context of the charter arrangement, including brief description of the vessel and intended use

3. Definitions: Definitions of key terms used throughout the agreement, including technical shipping terms and Indonesian legal terms

4. Vessel Details: Comprehensive description of the vessel, including specifications, classification, and certificates

5. Charter Period: Duration of the charter, including delivery and redelivery terms

6. Charter Hire: Payment terms, hire rates, and payment mechanisms

7. Vessel Operation and Management: Responsibilities for vessel operation, crew management, and operational control

8. Bunkers and Consumables: Provisions regarding fuel, oils, and other consumables

9. Trading Limits: Geographical limitations and permitted trading areas under Indonesian jurisdiction

10. Insurance and Liability: Insurance requirements and allocation of risks between parties

11. Maintenance and Repairs: Responsibilities for vessel maintenance and repair procedures

12. Compliance and Regulations: Compliance with Indonesian laws and international maritime regulations

13. Termination: Grounds and procedures for early termination of the charter

14. Dispute Resolution: Procedures for resolving disputes under Indonesian law

15. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

What sections are optional to include in a Charter Agreement?

1. Performance Standards: Specific performance requirements and guarantees, used when chartering for specialized operations

2. Environmental Compliance: Additional environmental protection measures, important for operations in environmentally sensitive areas

3. Sub-chartering: Terms regarding sub-chartering rights, included when sub-chartering is permitted

4. Special Equipment: Provisions for special equipment or modifications, needed for specialized cargo or operations

5. Local Content Requirements: Specific provisions regarding Indonesian crew or local content requirements, when applicable

6. Ice Clause: Special provisions for operation in ice conditions, if relevant to the trading area

7. War Risks: Additional provisions for operation in high-risk areas, when applicable

8. Sanctions Clause: Compliance with international sanctions, important for international trade

What schedules should be included in a Charter Agreement?

1. Schedule 1 - Vessel Specifications: Detailed technical specifications of the vessel

2. Schedule 2 - Vessel Certificates: List of required certificates and documentation

3. Schedule 3 - Charter Hire Calculations: Detailed breakdown of hire calculations and payment terms

4. Schedule 4 - Delivery and Redelivery Inventory: Inventory of vessel condition and equipment at delivery/redelivery

5. Schedule 5 - Bunker Specifications: Technical specifications for acceptable bunker fuel

6. Schedule 6 - Performance Criteria: Detailed performance standards and measurement methods

7. Appendix A - Form of Hire Statement: Template for monthly hire statements

8. Appendix B - Port Schedule: List of approved ports and any port restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions























































Clauses









































Relevant Industries

Maritime Transportation

Shipping

Logistics

International Trade

Oil & Gas

Mining

Commodities Trading

Marine Insurance

Maritime Services

Port Operations

Offshore Services

Energy

Relevant Teams

Legal

Maritime Operations

Commercial

Risk Management

Compliance

Finance

Technical Operations

Charter Operations

Marine Insurance

Vessel Management

Contract Administration

Documentation

Relevant Roles

Maritime Operations Manager

Chartering Manager

Shipping Director

Fleet Manager

Commercial Director

Legal Counsel

Risk Manager

Operations Director

Vessel Manager

Maritime Insurance Manager

Compliance Officer

Port Captain

Technical Superintendent

Commercial Manager

Contract Administrator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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