Understanding the legal framework for cargo claims and ship arrest in Indonesia is essential for maritime stakeholders. This article provides an in-depth look at the responsibilities of transport companies, the provisions for ship detention, and the procedural requirements for ship arrest under Indonesian law.
If cargo arrives delayed, lost, or damaged, what can the receiver do to secure their claim? Indonesia is not a party to the International Convention Relating to the Arrest of Seagoing Ships 1952 and the 1999 Convention. Article 41 of Law Number 17 of 2008 concerning Shipping, as amended by Government Regulation in lieu of Law Number 2 of 2022 regarding Job Creation and further enacted as Law Number 6 of 2023 on the Job Creation (“Shipping Law”) stipulates that if there is a delay, loss, or damage, it is the responsibility of the transport company unless the carrier can prove that the loss did not arise from its fault. To protect the transport company and guarantee any aggrieved party upon loss, Article 41 of the Shipping Law juncto Article 15 of Government Regulation Number 31 of 2021 of Management of The Shipping Sector provides that the transport company is mandated to insure the goods carried and/or their carrier services.
Detention of ships is regulated in Article 222 of the Shipping Law, which states that the harbourmaster can only detain ships at the port with a written court order. The detention is based on the reason that the ship in question is related to a criminal case or civil case. A “maritime claim” is a form of order to detain a ship in a civil case which is carried out without going through a lawsuit process. The “maritime claim” provisions that apply in Indonesia are the same as those regulated in the International Convention on Arrest of Ships 1999.
For an arrest, are there any special or notable procedural requirements, such as the provision of a PDF or original power of attorney to authorize you to act? There are no special or notable procedural requirements specifically for authorization in the context of an arrest.
Navigating the legal landscape of cargo claims and ship arrest in Indonesia requires a thorough understanding of the applicable laws and regulations. While Indonesia is not a party to key international conventions, its domestic laws provide a clear framework for addressing these issues. By ensuring proper insurance coverage and adhering to procedural requirements, maritime stakeholders can effectively manage risks associated with cargo claims and ship detention.
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Anggraeni and Partners, an Indonesian law practice with a worldwide vision, provides comprehensive legal solutions using forward-thinking strategies. We help clients manage legal risk and resolve disputes on admiralty and maritime law, complicated energy and commercial issues, arbitration and litigation, tortious claims handling, and cyber tech law.
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