INSIGHT
Newsletter - Ship Arrest: Law and Practice in Indonesia
Background
In the maritime sector, having clear understanding of the legal aspects of ship arrest is essential for shipowners, operators, and related stakeholders if there are any conditions on maritime claims, such as (i) loss or damage caused by the operation of the vessel, (ii) loss of life or serious injury occurring either on land, on shore, in water or sea as a result of the operation of a ship, and (iii) damage to the environment, the ship, or its cargo as a result of salvage operations or salvage agreements as explained in Article 223 of Law No. 17 of 2008 on Shipping as previously amended by Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation and Law No. 66 of 2024 on Third Amendment to Law No. 17 of 2008 on Shipping (“Shipping Law”). This article examines the conditions under which ship may be subject to arrest in Indonesia.
Ship Arrest Practice in Indonesia
The detention of ship in relation to the maritime-claim pursuant to the provisions of the ship arrest as outlined in Article 223 may occur under specific conditions that align with those set forth in Article 1 of the 1999 International Convention on Arrest of Ships. Indonesia is a signatory to the 1999 International Convention on Arrest of Ships, but has not ratified the convention into Indonesia’s law regarding shipping, so it is not yet enforceable in Indonesia. Accordingly, the participating nations of the convention cannot directly take action or seize a ship in Indonesia that is subject to a maritime-claim.
The Shipping Law introduces an update regarding ship arrest. In its legal arrangement, ship arrest in Indonesia is regulated in Article 222 and 223 of the Shipping Law. Pursuant to Article 222, the harbourmaster may only arrest a ship in the harbour upon a written court order related to a civil case or criminal case. Moreover, pursuant to Article 223, a court-ordered ship arrest in a civil case involving a maritime-claim is carried out without going through the lawsuit process. Therefore, the harbourmaster can act directly upon receiving an order from the court.
Wrongful Arrest of Ship
It is important to note that there is no specific regulation governing wrongful ship arrest. However, a party seeking compensation or damages for wrongful arrest must file a claim or lawsuit to the district court.
The enforcement of shipping law is crucial for ensuring legal certainty, protecting maritime stakeholders, and maintaining a fair and regulated shipping industry
The judges will use their discretionary powers to determine whether to award payment/compensation for the wrongful arrest. As previously mentioned, Article 223 of the Shipping Law outlines the circumstances under which a maritime claim that can be brought to court.
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NOTE
This article provides general information and does not constitute legal advice. Readers should seek specific legal counsel for their circumstances.
