INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
a foreign court, the claim is prohibited from being executed in Indonesia. The court will therefore not order an arrest of a vessel or attachment. This is consistent with Article 436 of the Indone - sian Regulations on Legal Proceedings ( Regle- ment op de Rechtvordering – RV ), which states that “the execution of a foreign district court’s decision cannot be implemented, unless a law provides otherwise, or at least in order to be implemented it is necessary to file a new law - suit using the foreign district court’s decision as evidence for reconsideration by the competent court”. This provision is a confirmation of the interpretation of Article 222 of the Shipping Law, whereby the “court order” stated thereunder will refer to an Indonesian court order. The alternative solution in this situation is to resubmit the claim to an Indonesian district court and utilise the obtained foreign court decision to persuade the court to decide in favour of the claimant. 6.5 Domestic Arbitration Institutes There is no Indonesian domestic arbitration insti - tute that specialises in maritime claims. How - ever, maritime claims can be settled through the Indonesian National Arbitration Centre ( Badan Arbitrase Nasional Indonesia – BANI ), an inde - pendent arbitration institution in Indonesia, if agreed by the parties. 6.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses When court proceedings are commenced in Indonesia, the relevant party can file an objection to the court on the basis of Article 11 of the Indo - nesian Arbitration Law, which explicitly prohibits the courts from adjudicating in disputes that are validly governed by an arbitration clause.
However, when the proceedings commence out - side the jurisdiction of Indonesia, Indonesian law does not provide any remedy or injunction to restrain those court proceedings. 7. Ship-Owners’ Income Tax Relief 7.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies The income of a ship-owner’s companies in Indonesia may receive an exemption from Arti - cle 22 income tax (ie, income tax arising from the export and import of goods) or VAT on the impor - tation of a transportation or fishing vessel, on the condition that the vessel-owner holds a sea transportation company business licence (“SIU - PAL”). The SIUPAL has recently been replaced with a sea transportation business standard cer - tificate ( sertifikat standar usaha angkutan laut , or “Standard Certificate”). For more detail, see 9.1 Other Jurisdiction-Specific Shipping and Mar - itime Issues . Generally, Article 22 income tax is imposed on government-owned and private business entities that carry out export, import and re-import trading activities. Other than that, a VAT exemption may be imple - mented, depending on the services generated by certain national water transportation compa - nies. However, Indonesia provides no optional tonnage tax on the income of a ship-owner’s companies. 8. Implications of Non- Performance, the IMO 2020, Trade Sanctions and the War in Ukraine 8.1 Force Majeure and Frustration The Indonesian Civil Code recognises the con - cept of force majeure, with the key provisions
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