INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
• ownership rights; • the granting of mortgages; and • other proprietary rights (such as bareboat charters and leasing). The MOT has appointed the director general of sea transportation to oversee this process. 1.4 Requirements for Ownership of Vessels In Indonesia, the operation or use of a vessel requires registration and licensing. The owner of a vessel can register the vessel in Indonesia with a vessel title transfer and registrar official ( pejabat pendaftar dan pencatat balik nama kapal ) appointed by the MOT. For a vessel to be registered, it must have a minimum of seven gross tonnage (GT) and be owned by an Indonesian citizen or an Indonesian legal entity that is majority Indonesian owned. Article 7 of MOT Reg 39/2017 provides that the following documents must be submitted for vessel registration: • proof of title on the vessel; • identity of the vessel owner; • taxpayer registration number ( nomor pokok wajib pajak ); • tonnage certificate ( surat ukur ); • proof of payment for the transfer of title ( balik nama ); and • power of attorney (if an application is submitted by a proxy). The vessel registration application is submitted online through the electronic vessel registration system ( sis- tem pendaftaran kapal elektronik – SPKE), and the vessel title transfer and registrar official will examine the application within three working days to ensure the completeness of the documents. Minutes of the vessel registration will be issued if the requirements described above have been satisfied. As stipulated by Article 11 (1) of MOT Reg 39/2017, the vessel owner will then receive a grosse vessel registration deed. 1.5 Temporary Registration of Vessels MOT Reg 39/2017 permits the temporary registration of vessels that are under construction in Indonesia or abroad. This temporary registration will be made in the form of a temporary registration certificate, which will only be issued when construction of the
hull, main deck and the entire superstructure has been completed. Article 160 of the Shipping Law prohibits the dual reg - istration of vessels. 1.6 Registration of Mortgages Vessel mortgages in Indonesia fall under the author - ity and jurisdiction of the MOT. Under Articles 28 and 29 of MOT Reg 39/2017, the beneficiaries of vessel mortgages may be Indonesian or foreign citizens, banks and financing or non-financing institutions (both national and international). Vessel mortgages will only be granted following the submission of an application to a vessel registrar, accompanied by the following documents: • a credit/loan agreement; • the original grosse vessel registration deed or grosse deed of the vessel’s title transfer; and • a power of attorney in notarial deed form (if such registration is registered by a proxy). Following execution of the vessel mortgage deed by the mortgagor, the mortgagee and the MOT official, Article 31 of MOT Reg 39/2017 provides that the ves - sel registrar will then hand over a grosse mortgage deed as well as the vessel registration grosse deed or vessel transfer of title grosse deed to the mortgagee. Under Article 33 of MOT Reg 39/2017, the assign - ment of a mortgage on a vessel requires the prepara - tion of a deed of assignment of a vessel mortgage. The receiver of the assignment of a vessel mortgage must submit an application to the vessel title trans - fer and registrar official where the vessel is registered through the SPKE. The following original documents are required for the application: • proof of assignment of the mortgage; • original grosse vessel registration deed or grosse
deed of the vessel’s title transfer; and • grosse deed of mortgage on vessels.
1.7 Ship Ownership and Mortgages Registry Under Article 43 of MOT Reg 39/2017, the registra - tion or documentation of ships will be recorded within a daily register, master register and central register.
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