Lease Agreement For Trucking Company Template for Indonesia

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Key Requirements PROMPT example:

Lease Agreement For Trucking Company

"I need a Lease Agreement For Trucking Company for a fleet of 15 refrigerated trucks operating in Jakarta and Surabaya, with specific provisions for temperature monitoring and maintenance schedules, starting from March 2025."

Document background
The Lease Agreement For Trucking Company is a specialized commercial contract designed for use in Indonesia's transportation sector, specifically tailored to comply with Indonesian civil law and transportation regulations. This document is essential when a trucking company needs to lease vehicles or equipment without the capital investment of purchasing them outright. It covers comprehensive terms including vehicle specifications, maintenance schedules, operational parameters, regulatory compliance requirements, and risk allocation. The agreement is particularly important in Indonesia's growing logistics sector, where it must align with various regulations including Law No. 22 of 2009 on Traffic and Road Transportation, Government Regulation No. 74 of 2014, and relevant ministerial decrees. This document is crucial for establishing clear rights and obligations between lessors and lessees while ensuring compliance with local transportation and business regulations.
Suggested Sections

1. Parties: Identification of the lessor and lessee, including complete legal names, registration numbers, and authorized representatives

2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the lease arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including technical and operational terminology

4. Lease Subject Matter: Detailed description of vehicles/equipment being leased, including quantity and type

5. Lease Term: Duration of the lease, including commencement date, termination date, and renewal options

6. Rental Payments: Payment terms, amounts, payment schedule, and method of payment

7. Delivery and Return: Terms for initial delivery and final return of vehicles, including condition requirements

8. Maintenance and Repairs: Responsibilities for vehicle maintenance, repairs, and associated costs

9. Operating Requirements: Rules and requirements for vehicle operation, including driver qualifications and route restrictions

10. Insurance and Liability: Required insurance coverage and allocation of risks between parties

11. Compliance Requirements: Obligations to comply with relevant laws, regulations, and permits

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Grounds for termination and the process for ending the agreement

14. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Fuel Management: Terms regarding fuel supply and cost allocation, used when fuel is part of the lease arrangement

2. GPS and Tracking Systems: Requirements for vehicle tracking systems, included when specific monitoring requirements exist

3. Driver Provision: Terms regarding driver provision and management, used when drivers are included in the lease

4. Cross-Border Operations: Additional terms for international operations, included for cross-border transportation

5. Environmental Compliance: Specific environmental requirements, included for environmentally sensitive operations

6. Sublease Rights: Terms regarding sublease permissions and conditions, included when sublease might be contemplated

7. Purchase Option: Terms for potential purchase of vehicles, included when lease-to-own arrangement is considered

8. Performance Metrics: Specific performance requirements and measurements, included for performance-based arrangements

Suggested Schedules

1. Schedule A - Vehicle Specifications: Detailed technical specifications of all leased vehicles

2. Schedule B - Rental Rate Schedule: Detailed breakdown of rental rates, including any variable components

3. Schedule C - Maintenance Schedule: Required maintenance intervals and procedures

4. Schedule D - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

5. Schedule E - Operating Territory: Maps or descriptions of approved operating areas

6. Schedule F - Condition Report Template: Template for recording vehicle condition at delivery and return

7. Schedule G - Key Performance Indicators: Metrics for measuring performance and compliance

8. Appendix 1 - Required Permits and Licenses: List of all required operational permits and licenses

9. Appendix 2 - Emergency Procedures: Procedures for handling accidents and emergencies

10. Appendix 3 - Authorized Driver Requirements: Qualifications and requirements for authorized drivers

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Transportation & Logistics

Manufacturing

Mining

Construction

Retail

Agriculture

Oil & Gas

E-commerce

Warehouse & Distribution

Food & Beverage

Industrial Services

Relevant Teams

Legal

Operations

Fleet Management

Finance

Procurement

Compliance

Risk Management

Commercial

Safety & Security

Maintenance

Business Development

Relevant Roles

Fleet Manager

Operations Director

Legal Counsel

Compliance Officer

Transportation Manager

Logistics Manager

Risk Manager

Finance Director

Commercial Director

Procurement Manager

Contract Administrator

Fleet Maintenance Manager

Safety Officer

Business Development Manager

Chief Operating Officer

Industries
Indonesian Civil Code (KUHPerdata): Fundamental law governing contracts and agreements in Indonesia, including lease provisions, rights and obligations of parties, and general contract principles
Law No. 22 of 2009 on Traffic and Road Transportation: Regulates road transportation, including commercial vehicles, safety standards, and operational requirements for trucking companies
Government Regulation No. 74 of 2014 on Road Transportation: Implementing regulation for Law No. 22/2009, detailing specific requirements for commercial transportation businesses
Law No. 40 of 2007 on Limited Liability Companies: Relevant for corporate governance and business operations if the trucking company is a PT (Perseroan Terbatas)
Minister of Transportation Regulation No. PM 60 of 2019: Specific regulations on commercial vehicle operations, including technical requirements and operational standards
Law No. 32 of 2009 on Environmental Protection and Management: Environmental regulations affecting vehicle emissions and environmental compliance requirements
Law No. 13 of 2003 on Manpower: Labor laws relevant to driver employment and worker rights in the transportation industry
Minister of Transportation Regulation No. PM 26 of 2017: Regulations regarding freight transportation rates and pricing structures
Government Regulation No. 82 of 2012 on Electronic System and Transaction Operations: Relevant for digital documentation and electronic records in transportation operations
Regional Transportation Regulations: Local government regulations specific to the area where the trucking company operates
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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