INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
8.3 Trade Sanctions Indonesia does not recognise nor enforce any international trade sanctions as part of its domestic law. Indonesia also does not exert general restrictions on specific jurisdictions carrying out trading activities, although it does impose temporary export and/or import restric - tions on certain products from certain jurisdic - tions. For example, Indonesia issued Minister of Trade Regulation No 10 of 2020 on Temporary Restriction on the Import of Living Animals from the People’s Republic of China in response to the COVID-19 pandemic and ratified the 1988 UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, through Indonesian Law No 7 of 1997. Indonesia became a member of the World Trade Organisation with the ratification of the Agree - ment Establishing the World Trade Organisation by virtue of Law No 7 of 1994 and therefore can impose trade sanctions as a countermeasure or “retaliatory action” in the case of a non-fulfilment of obligations pursuant to the rules of the WTO. Indonesia has not imposed any trade sanctions in relation to the Russia-Ukraine war, and con - tinues to partake in trade activities (eg, exports Articles 464 and 465 of the ICC allow for the termination of an agreement by providing written notice to the other party, if the enforcement of the agreement is obstructed due to the outbreak of war, and the obstruction cannot be resolved within a reasonable time. If the ship is carrying freight or passengers and is not in port at the time of termination, it must proceed to the near - est seaport. In all cases where the agreement is terminated prior to its completion, the ICC and imports) with both states. 8.4 International Conflict(s)
requires that freight costs remain payable in full up to the last day of the contract. In relation to war risk insurance coverage, Arti - cles 646 and 647 of the ICC provide that in the case of an insurance agreement that includes the term “free from damage”, the insurer will be liable for damage unless the insured goods are destroyed due to acts of violence, robbery, hijacking, robbery, detention by order of a ruler, declaration of war or acts of retaliation. At the time of writing, there are no legal precedents regarding defaults or non-performance of obli - gations caused by ongoing international con - flicts in publicly available court decisions. 9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping and Maritime Issues Previously, under MOT Regulation No 89 of 2018 regarding the Norms, Standards, Procedures and Criteria for the Electronically Integrated Business Licensing System in the Sea Transportation Sec - tor, a SIUPAL was required for businesses in the sea transportation sector. Indonesia has now adopted a risk-based licensing regime where business licences will be assessed and granted in line with the risk of the business activity. With the implementation of the risk-based licensing regime, the SIUPAL has been replaced by a Standard Certificate, pursuant to MOT Reg - ulation No 12 of 2021 regarding Standards of Business Activities and Products in the Imple - mentation of Risk-Based Business Licensing in the Transportation Sector, as lastly amended by MOT Regulation No 13 of 2023, which is intend - ed to simplify the requirements and procedures for obtaining the business licence. However,
248 CHAMBERS.COM
Powered by FlippingBook