INDONESIA Law and Practice Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
2.8.10 Revocation of a Deregistration Power of Attorney A power of attorney (except for recorded IDERA as mentioned below) will cease to exist upon the dec - laration of bankruptcy of the grantor. Therefore, it is advisable that, for agreements subject to the Cape Town Convention, the lessor should require the lessee to issue an IDERA naming the lessor as the authorised party and file the same with the DGCA for recording. In respect of the IDERA, the Aviation Law specifically states that the IDERA will survive a bankruptcy dec - If there is a recorded IDERA and/or CDL in place, the lessee’s consent should not be required to export the aircraft. However, in practice the lessee’s co-operation may be needed to export the aircraft out of Indonesia. If required by the importing country, the authorised party under the IDERA must apply for an Export Cer - tificate of Airworthiness (the “Export CoA”) to the DGCA, which must be submitted prior to submitting the deregistration application. Prior to the issuance of the Export CoA, the DGCA will normally conduct a physical inspection of the aircraft at its location, which (from a technicality point of view) may require the les - see’s co-operation. See also 2.6.2 Lessor Taking Possession of the Air- craft . 2.8.12 Aircraft Export Permits/Licences laration or insolvency of its issuer. 2.8.11 Owner’s/Lessor’s Consent Aircraft export permits/licences are issued in Indone - sia. It is not possible to obtain an export permit in advance. There is no official timeline. As a matter of practice, it may take three to seven working days as of the submission of the complete application. In addi - tion, the application for the export licence should be processed by a licensed special agent. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft The associated costs for export of the aircraft include fees for processing customs clearance and other related licences, for which a customs agent licensed by the Customs Office must be appointed by the les -
sor. The estimated costs are between USD10,000 and USD12,000. 2.8.14 Practical Issues Related to Deregistration of Aircraft The lessee may delay the deregistration process that is being carried out by the lessor by disputing the les - sor’s right to repossession of the aircraft. For exam - ple, the lessee could send an objection letter to the DGCA, objecting to the request for deregistration of the aircraft. This could significantly delay the whole process. However, this practice occurred prior to the enactment of the Aviation Law – there is a reasonable expectation that this should no longer occur following the enactment of the Aviation Law. In addition, the lessee may, by their act or omission, put a halt to the export of the aircraft by failing to settle any of the customs requirements or to pay the required fees to the Airport Authority. In such cases, the Airport Authority may defer granting the aircraft a permit to leave the airport. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Companies incorporated in or resident in Indonesia can be liquidated pursuant to Law No 40 of 2007 as amended (the “Company Law”) and/or Law No 37 of 2004 (the ”Bankruptcy Law”). Under the Company Law Pursuant to the Company Law, dissolution of a com - pany shall occur if: • resolved by the general meeting of shareholders (with a quorum of at least ¾ of total shares with valid voting rights and approved by at least ¾ of total votes validly cast at the meeting); • the duration of establishment as stipulated in the articles of association has expired; • determined by the court; • the bankruptcy status has been revoked by a final and binding judgment of the Commercial Court, and the bankruptcy estate of the company is insuf - ficient to pay the bankruptcy cost; • a state of insolvency has commenced; or
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