INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
Nevertheless, as described above, Indonesia has not issued any regulations regarding the formalities or procedures for the arrest of a ves - sel. The law is also silent on the need for security deposits in the context of ship arrests. Further - more, neither the Indonesian Civil Procedural Law nor Supreme Court decisions have provided any guidelines or requirements for ship arrests. As a result, the authority of the harbour master or the courts remains unclear. On the matter of powers of attorney or notarisa - tions, in general, to act on behalf of foreign par - ties who are located outside Indonesia, the claim petitioner will be required to obtain a power of attorney, and to be notarised and consularised at a local Indonesian embassy. 4.6 Arresting Bunkers and Freight Indonesian law does not provide any explicit regulation on the arrest of bunkers or freight. Nevertheless, under Article 223 of the Shipping Law, costs related to bunkers may be seen as a maritime claim and therefore arrest of a vessel due to its bunkers or freight should be executed through a court order. 4.7 Sister-Ship Arrest The Shipping Law does not contain any provi - sions concerning the arrest of sister-ships or associated ships. 4.8 Other Ways of Obtaining Attachment Orders Parties can obtain attachment orders by filing a civil claim with the district court. During the civil proceeding, the plaintiff may file an attach - ment order petition with the chair of the court for seizing the defendant’s assets to obtain security. By applying for this confiscation, it is possible for the plaintiff to request the seizure of all the
ships possessed by a ship-owner acting as the defendant in the civil claim. 4.9 Releasing an Arrested Vessel As discussed in 4.5 Arresting a Vessel , Indone - sia does not have any implementing regulations that govern the procedures for vessel arrests. As a result, the release of arrested vessels is akin to the confiscation of assets, conservatory attachment or detainment. As noted, vessels are arrested based on a court order, so the release will only be carried out based on a court deci - sion. Indonesia does not recognise the concept of using securities or guarantees in exchange for the arrest or seizure of assets. The release of arrested vessels will only take place upon the resolution of the claim or through the revoca - tion of the arrest via a court order. The use of a club’s letter of indemnity or a foreign bank’s bank guarantee may therefore not be accepted by the court. 4.10 Procedure for the Judicial Sale of Arrested Ships As discussed in 4.5 Arresting a Vessel and 4.9 Releasing an Arrested Vessel , there is an absence of regulations on the procedure for the arrest of ships. If the ship has previously been arrested and subjected to a collateral seizure (ie, a seizure order issued to ensure that the assets remain accessible and are not transferred or removed for enforcement purposes) prior to the issu - ance of a final and binding decision, subject to procedures relevant to the applicable laws, the execution of these assets may be carried out through a private sale agreed between the par - ties. This process allows the judgment debtor (the losing party) to fulfil its obligations to the
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