Loading...
Maritime Liens and Vessel Arrest in Indonesia: Legal Requirements and Procedures
In the maritime industry, understanding the legal framework surrounding maritime liens and vessel arrest is crucial for shipowners, operators, and other stakeholders. Indonesia, with its extensive maritime activities, has specific laws and regulations governing these areas. This article explores the recognition of maritime liens, the requirements for vessel registration, and the conditions under which a vessel can be arrested in Indonesia.
Recognition of Maritime Liens
Maritime liens or maritime privileges recognized in Indonesia allow a ship to be used as collateral for a debt in the form of a mortgage or pledge, provided that the ship has been registered in the Indonesian ship list. To register a ship, the following qualifications must be met:
- The ship must have a gross tonnage size of at least GT 7 (seven Gross Tonnage).
- The ship must be owned by Indonesian citizens or legal entities established under Indonesian law and domiciled in Indonesia.
- The ship must be owned by Indonesian legal entities which are joint ventures majority-owned by Indonesian citizens.
Foreign ships can also be registered, provided they have a certificate of removal from the flag country of origin. Thus, the right to charge a mortgage on a ship depends on its successful registration in the Indonesian ship register.
For ships with a gross tonnage of less than seven, the ship can be used as an object of collateral based on the pledge law in force in Indonesia.
Liability for Vessel Arrest
Under Indonesian law, specifically Article 223 paragraph (1) points q and r of the Shipping Law, the owner or demise charterer of the vessel is liable in personam for purchasing insurance premiums, commissions, fees, intermediaries, or brokerage or agency services related to the vessel. Debts incurred by a charterer can also lead to the vessel’s arrest. A vessel may be arrested if it serves as collateral for a debt or if it is the object of a court-ordered confiscation.
Sister Ship or Associated Ship Arrests
The current Indonesian Shipping Law does not address the arrest of sister ships or associated ships.
Counter-Security for Arrests
The concept of counter-security is not recognized in the Shipping Law. Vessel arrests are revoked once civil or criminal case proceedings are resolved. However, vessels confiscated due to criminal proceedings may be forfeited for the state’s interest by court order.
Release of the Vessel
Indonesian law does not specify the security required for the release of a vessel, such as a Club Letter of Undertaking (LOU). Vessel arrest is revoked once civil or criminal case proceedings are concluded, unless the court orders the vessel’s forfeiture for state interests.
Conclusion
Navigating the legal requirements and procedures for maritime liens and vessel arrest in Indonesia requires a thorough understanding of the applicable laws. While Indonesia provides a framework for registering ships and recognizing maritime liens, certain aspects, such as the arrest of sister ships and the use of counter-security, remain underdeveloped. Stakeholders must stay informed about these regulations to effectively manage their maritime operations and protect their interests.
DISCLAIMER:
This disclaimer applies to the publication of articles by Anggraeni and Partners. By accessing or reading any articles published by Anggraeni and Partners, you acknowledge and agree to the terms of this disclaimer:
No Legal Advice: The articles published by Anggraeni and Partners are for informational purposes only and do not constitute legal advice. The information provided in the articles is not intended to create an attorney-client relationship between Anggraeni and Partners and the reader. The articles should not be relied upon as a substitute for seeking professional legal advice. For specific legal advice tailored to your individual circumstances, please consult a qualified attorney.
Accuracy and Completeness: Anggraeni and Partners strive to ensure the accuracy and completeness of the information presented in the articles. However, we do not warrant or guarantee the accuracy, currency, or completeness of the information. Laws and legal interpretations may vary, and the information in the articles may not be applicable to your jurisdiction or specific situation. Therefore, Anggraeni and Partners disclaim any liability for any errors or omissions in the articles.
No Endorsement: Any references or mentions of third-party organizations, products, services, or websites in the articles are for informational purposes only and do not constitute an endorsement or recommendation by Anggraeni and Partners. We do not assume responsibility for the accuracy, quality, or reliability of any third-party information or services mentioned in the articles.
No Liability: Anggraeni and Partners, its partners, attorneys, employees, or affiliates shall not be liable for any direct, indirect, incidental, consequential, or special damages arising out of or in connection with the use of the articles or reliance on any information contained therein. This includes but is not limited to, loss of data, loss of profits, or damages resulting from the use or inability to use the articles.
No Attorney-Client Relationship: Reading or accessing the articles does not establish an attorney-client relationship between Anggraeni and Partners and the reader. The information provided in the articles is general in nature and may not be applicable to your specific legal situation. Any communication with Anggraeni and Partners through the articles or any contact form on the website does not create an attorney-client relationship or establish confidentiality.
By accessing or reading the articles, you acknowledge that you have read, understood, and agreed to this disclaimer. If you do not agree with any part of this disclaimer, please refrain from accessing or reading the articles published by Anggraeni and Partners.
For further information, please contact:
P: 6221. 7278 7678, 72795001
H: +62 811 8800 427
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.
S.F. Anggraeni
Managing Partner
Reynalda Basya Ilyas
Senior Associate
Melvin Julian
Middle Associate
