INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
employed on board a ship, including repa - triation and social insurance costs for their interests; • financing or disbursements incurred for the interest of the ship on behalf of the ship’s owner; • insurance premium (including “mutual insur - ance call”) for the ship payable by the ship’s owner or charterer without the ship’s crew or bareboat (demise charterer); • commission, fees, broker or agency fees payable relating to the ship on behalf of the ship’s owner without the ship’s crew (demise charterer); • costs of a dispute related to the ownership status of the ship; • costs of a dispute between the co-owners of a ship related to the operation and revenue or mining products of the ship; • a mortgage fee on a ship or other encum - brance of a similar nature on the ship; and • costs of a dispute caused by a ship sale agreement. At the time of writing, there are no implement - ing ministerial regulations regarding these pro - cedures 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 Ship - ping Law stipulates that a written court order may be enforced without the process of a law - suit, 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 Indonesian Criminal Proce - dural Code ( Kitab Undang-Undang Hukum Aca- ra 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 4.5 Arresting a Vessel for further discussion on this matter. 4.2 Maritime Liens In Indonesia, maritime liens are referred to as prioritised maritime receivables, in which a party may exercise a maritime lien for claims to receiv - ables where ships or vessels will act as a secu - rity. Indonesia has also ratified the International Convention on Maritime Liens of 1993, by way of Presidential Regulation No 44 of 2005. Further - more, Article 65(2) of the Shipping Law states that maritime receivables include the following: • payment of wages and costs, and other pay - ments to the Master and crew of the vessel, including repatriation costs and social insur - ance contributions 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 ves - sel, other than loss or damage to the cargo, container and passenger baggage. Under Article 66 of the Shipping Law, the pay - ment of maritime receivables will be prioritised over the payment of pledges, mortgages and registered receivables. In the absence of priori -
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