INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
• costs of a dispute caused by a ship sale agree - ment. At the time of writing, there are no implementing min - isterial regulations regarding these procedures for the detention or arrest of ships. The Third Amendment to the Shipping Law intro - duces an express provision on the possibility of ship arrest in the context of asset seizures under either civil or criminal procedures, which must be carried out pursuant to the applicable laws. With regard to civil case arrests, while the Shipping Law stipulates that a written court order may be enforced without the process of a lawsuit, due to the paucity of further implementing regulations, it appears that a court order related to civil claims may only be issued as a result of or in relation to a court proceeding, such as in the context of collateral seizure or enforcement seizure. It is therefore unlikely a court will issue a vessel arrest instruction without undergoing a civil lawsuit litigation process. With regard to criminal cases, the Indone - sian Criminal Procedural Code ( Kitab Undang-Undang Hukum Acara Pidana – KUHAP) allows the Indonesian police to seize a vessel by virtue of a warrant issued by the chairman of the relevant district court. In dire and urgent circumstances, seizures may be enforced by the police with a warrant obtained at a later time. See 5.5 Arresting a Vessel for further discussion on this matter. 5.2 Maritime Liens In Indonesia, maritime liens are referred to as priori - tised maritime receivables, in which a party may exer - cise a maritime lien for claims to receivables where ships or vessels will act as a security. Indonesia has also ratified the International Convention on Maritime Liens of 1993, by way of Presidential Regulation No 44 of 2005. Furthermore, Article 65 (2) of the Ship - ping Law states that maritime receivables include the following: • payment of wages and costs, and other payments to the master and crew of the vessel, including repatriation costs and social insurance contribu - tions to be financed;
• payment for the death or medical expenses for bodily injuries in relation to the operation of the vessel, both at land and at sea; • payment for the salvage of the vessel; • payment of port fees or other shipping routes and pilotage fees; and • any losses that arise from physical loss or damage caused by the operation of the vessel, other than loss or damage to the cargo, container and pas - senger baggage. Under Article 66 of the Shipping Law, the payment of maritime receivables will be prioritised over the pay - ment of pledges, mortgages and registered receiva - bles. In the absence of prioritised receivables or mari - time liens, a party may file a civil claim to the relevant district court. Maritime claims are defined in Article 223 of the Ship - ping Law as being in line with provisions regarding the arrest of ships, as described in 5.1 Ship Arrests . Maritime claims also include expenses related to the utilisation, operation or leasing of a vessel, as well as transportation expenses for cargo or passengers aboard a ship, as stipulated in a charterparty or other relevant arrangements. 5.3 Liability in Personam for Owners or Demise Charterers In the case of a civil claim relating to a maritime claim, Article 223 of the Shipping Law stipulates that a ship can be detained without a lawsuit process. However, as far as is known, this has never occurred in practice, and both civil and criminal matters must go through the process of obtaining a court order to determine that a liability has been established. After a court order is obtained, the harbour master may carry out Under Article 223 of the Shipping Law, the cost of bunkers and bunkering activities may be a basis for maritime claims and therefore can lead to the arrest of a vessel. Indonesian law does not provide any further regulations on the difference between a contractual supplier and an actual supplier for unpaid bunkers. As a vessel arrest will take place as a result of a court order, the contractual supplier, actual supplier or the arrest of the vessel. 5.4 Unpaid Bunkers
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