INDONESIA Trends and Developments Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
can file for deregistration of the aircraft and only the certified designee can file for revocation of the CDL. In addition, the Aviation Law also makes it possible for the filing by the creditor of an interim relief under the Cape Town Agreements through the district court where, pursuant to the declarations made by Indone - sia and the Aviation Law, the court order for interim relief shall be issued within the following timeframes: • for preservation of the value, the obtaining of pos - session, control or custody and/or immobilisation of the aircraft objects, not more than ten calendar days from the date of filing the application; or • in the case of a lease or the management of the aircraft objects and the income therefrom and the sale of the aircraft objects and the application of the proceeds therefrom, not more than 30 calendar days from the date of filing the application. Law No 37 of 2004 concerning Bankruptcy and Sus - pension of Payments states that upon the declaration of bankruptcy, there is a 90-day automatic stay period during which the right of the lessor to repossess will be suspended. However, the Aviation Law shortens the automatic stay period with respect to aircraft objects under the possession of a bankrupt debtor by providing that such period should be consistent with the Cape Town Agreements, ie, 60 days. Repossession of aircraft using the IDERA and under the Cape Town Agreements Repossession of the aircraft does not require permis - sion of the court in the case of a friendly repossession. There is now some uncertainty that a court ruling may be required if it becomes unfriendly. To repossess an aircraft, deregistration would need to be applied and would be granted upon fulfilment of all administra - tive requirements; and for exportation of the aircraft or equipment, the customs, security, diplomatic and DGCA clearance will be required. The Aviation Law states that an Indonesian registered aircraft can be deregistered from the Indonesian Civil Aircraft Registry upon request by (i) the owner of the aircraft or (ii) the creditor by virtue of a recorded IDE - RA, if the airline (ie the lessee or debtor) is in default under its agreement and this deregistration process
could be made without the need of a court order via the IDERA or CDL through the DGCA, which should be completed within five working days, but in practice it can be longer. Further, the Cape Town Agreements also provide vari - ous forms of remedies for creditors (which include the owner, mortgagee or lessor) and one of them is to take possession of the aircraft in the event of default by the airline. Pursuant to the declarations made by the Republic of Indonesia, such remedies can be per - formed without court action and without the leave of the court. This is also stated in the Aviation Law itself, whereby a deregistration of the aircraft can be carried out without a court ruling in the event of default by a lessee of an aircraft. However, due to the issuance of GR 32/2021, it is now unclear whether, in the event of a default by a lessee whereby the owner/lessor is not named as the authorised party under an acknowledged and recorded IDERA, such owner/lessor can repossess the aircraft without a court action. Article 15 (a)(7) of the GR 32/2021 now requires a final and binding court ruling for a deregistration request by an owner due to a default by a lessee. The Aircraft Registration Regu - lation also requires that a deregistration request be submitted by (i) a creditor having international interest based on an interim relief ruling from the court or (ii) a party that has won an arbitration award or court rul - ing in the event of a default. It should be noted that, under Indonesian laws and regulations, provisions under a government regulation and ministerial regula - tion should not be contrary to and must be consistent with the Law implemented by such regulations, as a law is higher in hierarchy compared to a government regulation or a ministerial level regulation. How court treats interim relief filings in Indonesia Some interim relief decisions by Indonesian courts between 2019 and 2020 have been published. The most common interim relief decisions concern Bell 407 Helicopters and Cessna Type C-208B Grand Car - avan aircraft as well as Cessna Cargo Master aircraft. Most filings occur due to the operator’s (i) default of payment under the underlying instalment sale agree - ment or (ii) payment default under the underlying lease agreement.
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