Indonesia

Located in Southeast Asia, Indonesia is an archipelago between the Indian Ocean and the Pacific Ocean. Bahasa Indonesia, a modified form of Malay, is the official language but English, Dutch and local dialects are widely spoken. The legal system is based on Roman-Dutch law substantially modified by indigenous concepts and by a criminal procedures code.

The Chief of State and Head of Government is the President, and there is a unicameral House of Representatives. Jakarta is the capital. Indonesia is a member of the UN, ASEAN, and the IMO.

The economy is mixed with some socialist institutions and central planning but with emphasis on deregulation and private enterprise. The Law on Government decentralization is now gradually being implemented. Chief exports are manufactured goods and fuels to Japan and the United States. The currency is the Indonesian Rupiah.

The Shipping Law No. 21 of 1992 dated September 17, 1992 covers the maritime matters in Indonesia. This Shipping Act is further implemented by a number of government regulations which specifically regulate certain fields in maritime law, as follows:

  • Government Regulation No. 69/2001 replacing Government Regulation No. 70/1996, concerning Harbors;

  • Government Regulation No. 1/1998 concerning Investigation of Ship Accidents which gave birth to the existence of the Maritime Investigation Court;

  • Government Regulation No. 82/1992 concerning Transportation in Waters (“GR 82/1999”);

  • Government Regulation No. 7/2000 concerning Seafarers Affairs;

  • Government Regulation No.81/2000 concerning Navigation;

  • Government Regulation No. 82/2000 concerning Water Transportation; and

  • Government Regulation No. 51/2002 concerning Vessels (“GR 51/2002”).

In addition, Indonesia has ratified the International Convention on Maritime Liens and Mortgage 1993 (“Convention”) based on the Presidential Regulation No. 44 of 2005.

According to Article 19 of GR 51/2002 and its elucidation, the vessel registration shall cover the registration of

  • right of ownership;

  • hypothec encumbrance; and

  • any other in rem rights over the vessels, such as: bareboat charter and leasing.

 

The vessel registration shall be recorded in the Indonesian vessel list consisting of

  • Daily Registry;

  • Master Registry; and

  • Central Registry.

 

The Daily Registry and Master Registry shall be conducted and maintained in every place of vessels registration, while the Central Registry shall be centrally conducted and maintained in the place determined by the Minister of Communications. In this regards, the Minister of Communications has issued a Decree No. KM 14 of 1996 dated March 29, 1996 as amended by Decree No. KM 1 of 2002 dated January 14, 2002 (the “KM/1996”) concerning Simplification of Procedures of Vessels Procurement and Registration which intends to simplify the vessel registration requirements and procedures