Shipping 2026

INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm

3. Marine Casualties and Owners’ Liability 3.1 International Conventions: Pollution and Wreck Removal Indonesia has ratified the International Convention on Civil Liability for Oil Pollution Damage of 1969 (the “CLC”) and the Protocol of 1992 to Amend the CLC, by way of Presidential Decree No 18 of 1978 and Pres - idential Decree No 52 of 1999, respectively. Indonesia ratified the International Convention for the Prevention of Pollution from Ships of 1973, as modi - fied by the Protocol of 1978 relating thereto and by the Protocol of 1997, through Presidential Decree No 46 of 1986 and Presidential Regulation No 29 of 2012. In 2014, Indonesia also ratified the International Conven - tion on Civil Liability for Bunker Oil Pollution Damage, 2001, through Presidential Regulation No 65 of 2014. 3.2 International Conventions: Collision and Salvage Indonesia has ratified the 1972 International Regula - tions for Preventing Collisions at Sea, by way of Presi - dential Decree No 50 of 1979, but has not ratified the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels. Liability in the event of ship collisions is also regulated by the ICC. Article 535 of the ICC provides that, if a vessel col - lision occurs due to an accident or an act of force majeure, or if there is doubt concerning the cause of the collision, damages will be borne by those who have suffered losses. Under Article 536 of the ICC, if a vessel collision is the fault of one of the collid - ing vessels, the damages will be borne by the vessel entrepreneur ( pengusaha kapal ) who has committed the fault. Nevertheless, as stated in Article 537 of the ICC, if a vessel collision occurs due to the fault of both colliding vessels, the liability of each party will be proportionate to the fault committed. A judge appoint - ed by the party claiming indemnity will establish the extent of this liability. If the judge fails to establish the extent of the liability, the liabilities will be equal for both parties.

Indonesia has not yet ratified the 1989 International Convention on Salvage or any other protocols or con - ventions on salvage. It has enacted MOT Regulation No 71 of 2013 regarding Salvage and/or Underwa - ter Works, as last amended by MOT Regulation No 27 of 2022 regarding the Third Amendment of MOT Regulation No 71 of 2013 regarding Salvage and/or Underwater Works. This regulation provides that loss or damage to the skeleton of ships and their goods is the liability of the ship’s owner, as are any fees that arise. 3.3 Convention on Limitation of Liability for Maritime Claims Indonesia has not ratified the 1976 Convention on Limitation of Liability for Maritime Claims. Maritime claims are currently regulated by the ICC and are defined in Article 223 of the Shipping Law. The ICC provides a limitation of liability depending on the con - text and nature of the event (eg, ship collision, marine cargo damage). 3.4 Vienna Convention on the Law of Treaties Indonesia is not a party to the Vienna Convention on the Law of Treaties 1969 (VCLT). 3.5 Procedure and Requirements for Establishing a Limitation Fund Indonesian laws and regulations do not specify the form, amount or procedures for a limitation fund. In practice, a shipper may request the owner of a vessel provide a deposit in the form of cash with the intention of using the deposit as a limitation fund. 3.6 Seafarers’ Safety and Owners’ Liability Indonesia has ratified the Maritime Labour Con - vention (MLC) through Law No 15 of 2016, which is entrenched further by Article 87 of GR 31/2021. GR 31/2021 requires all Indonesian-flagged vessels to adhere to MLC requirements and to obtain MLC certification. To enforce this obligation, the MOT has issued MOT Regulation No PM 58 of 2021 regarding Maritime Labour Convention Certification (“MOT Reg 58/2021”). Under MOT Reg 58/2021, ship-owners or ship operators are required to apply for a declara - tion of the satisfaction of MLC requirement Part I and a declaration of the satisfaction of MLC requirement Part II certificates (“DMLC”).

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