INDONESIA Law and Practice Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
2.8 Aircraft Deregistration and Export 2.8.1 Deregistering Aircraft in This Jurisdiction Pursuant to the Aviation Law, the owner as registered in the certificate of registration should be entitled to deregister the aircraft upon the occurrence of an event of default without a court order. However, as dis - cussed in 2.6.2 Lessor Taking Possession of the Air- craft , due to the issuance of the Aviation Government Regulation, it is now unclear whether in the event of a default by a lessee where the owner does not hold an acknowledged and recorded IDERA, it can repossess the aircraft without a court order. Further, as a matter of practice, the granting of the deregistration approval may be deferred by the DGCA if such application for deregistration is disputed by the aircraft operator (ie, lessee). In light of the Aviation Law and the Cape Town Con - vention, the authorised party specified in the IDERA should be able to request deregistration without any further consent of the lessee. In addition to the IDERA, it would be helpful if the owner or the lessor of the aircraft has secured a deregistration and export power of attorney and a deregistration consent from the les - see, consisting of (i) the statement of no dispute, to be signed by the owner and the aircraft operator; and (ii) the aircraft deregistration statement letter, to be signed by all parties involved in the lease transaction (based on forms prescribed by the DGCA). Pursuant to Ministry of Transportation Regulation No 52 of 2018 as amended, either the authorised party (under the IDERA) or the certified designee (in the event there is a recorded CDL) can apply for aircraft deregistration. 2.8.2 Lessee’s/Operator’s Consent The Aviation Law does not require formal consent from the lessee for deregistration of the aircraft. However, as a matter of practice, the deregistration approval may be deferred by the DGCA if such application for deregistration is disputed by the aircraft operator (ie, lessee). Therefore, in practice, a mortgagee or lessor requires the co-operation of the lessee for the dereg - istration of the aircraft, which amounts to effective consent. 2.8.3 Required Documentation For the purposes of deregistration of the aircraft, the relevant party (eg, the creditor) must obtain a Dereg -
2.7.4 Filing/Registration of Lease Assignments/ Novations There is no separate register of leases in Indonesia (see 2.3.4 Registration of Leases With the Domes- tic Aircraft Registry ). However, if the lease assign - ment/novation results in a change to the owner of the aircraft as stated in the certificate of registration of the aircraft, change to the authorised party under the IDERA, and/or change to the certified designee under the CDL, see 2.7.3 Enforceability of Lease Assign- ments/Novations . To the extent such assignment can be registered with the International Registry for the purpose of the Cape Town Convention, it should also be registered with the International Registry. If the lease assignment or novation above results in change of the lessor, a notice should be filed with the DGCA informing it of the change of lessor so that such information can be updated by the DGCA in the Aircraft Register. 2.7.5 Taxes/Duties Payable on Assignment/ Novation For any tax advice, please consult with an Indonesian tax consultant on this matter. 2.7.6 Recognition of Transfer of Ownership Interests If the transfer results in the change of owner whose name appears on the certificate of registration of the aircraft, then the certificate of registration will need to be reissued naming the new owner as the owner of the aircraft. Further, if the assignment will result in a change of the “authorised party” under the IDERA that has been registered with the DGCA, such recorded IDERA must first be revoked and, upon the issuance of a new certificate of registration, a new IDERA should be subsequently recorded with the DGCA. In addi - tion, if there is an existing CDL granted by the author - ised party named in the relevant IDERA in favour of a secured party and the transfer results in a change to the certified designee under a CDL recorded with the DGCA, the existing CDL needs to be revoked and a new CDL can be recorded with the DGCA.
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