INDONESIA Law and Practice Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
Mochtar Karuwin Komar 11th Floor WTC 1 Kav. 29-31 Jl. Jend. Sudirman Jakarta 12920 Indonesia
Tel: +62 21 571 1130 Fax: + 62 21 571 1162 Email: mail@mkklaw.net Web: www.mkklaw.net
1. Aircraft and Engine Purchase and Sale 1.1 Sales Agreements 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement There are no stamp or similar documentary taxes pay - able in Indonesia in respect of the execution or delivery of the engine sale agreement, except that it is subject to a nominal stamp duty of IDR10,000 per document. This must be paid when it is first used in the Repub - lic of Indonesia and before it will be admissible as evidence in Indonesian courts. To be admissible as evidence, the document needs to be accompanied by a sworn translation thereof into Indonesian language prepared by a sworn translator licensed in Indonesia (this requirement can be met prior to submission as evidence before the Indonesian court). For any tax advice, please consult with an Indonesian tax consultant on this matter. 1.1.2 Enforceability Against Domestic Parties An aircraft and engine purchase and sale agreement that does not involve an Indonesian party does not need to be translated, certified, notarised or legal - ised to be enforceable against an Indonesian party. However, it should be noted that, for the purpose of registration with the Indonesian Aircraft Registry, one of the prerequisite documents is evidence of aircraft ownership, which can be in the form of a bill of sale or affidavit of ownership for the aircraft (a copy of which needs to be legalised by a public notary, seller or the issuing institution).
1.2 Transfer of Ownership 1.2.1 Transferring Title
From an Indonesian law perspective, the act(s) consti - tuting “transferring title” would depend on the govern - ing law of such transaction, which is evidenced in the form of a bill of sale or affidavit of ownership for the aircraft. Such sales are normally conducted outside Indonesia by non-Indonesian parties. However, there is no separate registration for engines in the Indonesian Aircraft Registry. As a matter of practice, it is also advisable to put a nameplate identi - fying the lessor and the owner on the aircraft, engines and certain parts. 1.2.2 Sales Governed by English or New York Law To the extent that, under the laws governing the bill of sale (and the relevant sale agreement) and the laws where each of the parties therein is incorporated, the seller has the capacity, authority and power to dis - pose of the aircraft and the aircraft has been physi - cally accepted by the buyer from the seller, Indonesia should recognise title transfer by means of a bill of sale. 1.2.3 Enforceability Against Domestic Parties For the purpose of registration of an aircraft with the Indonesian Aircraft Registry, one of the prerequisite documents is evidence of aircraft ownership, which can be in the form of a bill of sale or affidavit of own - ership for the aircraft (a copy of which needs to be legalised by an Indonesian public notary, seller or the issuing institution).
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