ICLG
The International Comparative Legal Guide to: Shipping Law 2019
7th Edition A practical cross-border insight into shipping law
Published by Global Legal Group, with contributions from:
A. KARITZIS & ASSOCIATES L.L.C FRANCO & ABOGADOS ASOCIADOS Noble Shipping Law Advokatfirmaet Selmer AS FRANCO DUARTE MURILLO Q.E.D INTERLEX CONSULTING SRL ARREDONDO LÓPEZ RANGEL Ana Cristina Pimentel & Associados, Rolmax Law Office Harris & Co. Sociedade de Advogados, SP RL Rosicki, Grudziński & Co. HFW Australia Arias, Fábrega & Fábrega Sabatino Pizzolante Abogados Marítimos & Banwo & Ighodalo Hill Dickinson LLP Comerciales BLACK SEA LAW COMPANY Ince Shepstone & Wylie Attorneys Clyde & Co LLP Jensen Neugebauer SSEK Indonesian Legal Consultants D. L. & F. DE SARAM Jipyong LLC ThomannFischer DANIOLOS LAW FIRM Kegels & Co Tomasello & Weitz Dardani Studio Legale KOCH DUKEN BOËS Van Traa Advocaten N.V. DELVISO-AVOCATS Lee and Li, Attorneys-at-Law VdA Dingli & Dingli Mattos Filho, Veiga Filho, Marrey Jr. e VUKIĆ & PARTNERS Quiroga Advogados Emirates Maritime Arbitration Centre (EMAC) Yoshida & Partners Meana Green Maura y Asociados SLP (MGM&CO.) Esenyel|Partners Lawyers & Consultants Morais Leitão, Galvão Teles, Soares Estudio Arca & Paoli Abogados da Silva & Associados (Morais Leitão) Fernandes Hearn LLP Mulla & Mulla & Craigie Blunt & Caroe Foley Gardere, Foley & Lardner LLP NAVICUS The International Comparative Legal Guide to: Shipping Law 2019
General Chapters: 1 Key Recent Shipping Cases in the English Courts – Andrew Bicknell & Hatty Sumption, Clyde & Co LLP 1 2 The Changing Face of Maritime Law and Risk – Cyber, E-Commerce, Automation of Vessels – Julian Clark, Hill Dickinson LLP 7 Contributing Editor 3 The (Likely) Execution of the United States-Mexico-Canada Agreement (USMCA) – Andrew Bicknell, Alejandro N. Gómez-Strozzi, Foley Gardere, Foley & Lardner LLP 13 Clyde & Co LLP 4 Portuguese Tonnage Tax – Enhancing Shipping in Portugal – Cátia Henriques Fernandes, Sales Director Morais Leitão, Galvão Teles, Soares da Silva & Associados (Morais Leitão) 15 Florjan Osmani 5 EMAC and the Development of Maritime Arbitration in the UAE – Jyothi Mani, Account Director Oliver Smith Emirates Maritime Arbitration Centre (EMAC) 19
Sales Support Manager 6 BIMCO on 2020 – Charter Parties and Bunker Contracts – Mads Wacher Kjærgaard & Nina Stuhrmann, Toni Hayward BIMCO 23 Sub Editor 7 Ensuring Competitive and Fair Shipping Markets – Mark Jackson, The Baltic Exchange 28 Jane Simmons Senior Editors Country Question and Answer Chapters: Caroline Collingwood Rachel Williams 8 Angola VdA: João Afonso Fialho & José Miguel Oliveira 30 CEO 9 Australia HFW Australia: Nic van der Reyden & Hazel Brewer 36 Dror Levy 10 Belgium Kegels & Co: André Kegels 43 Group Consulting Editor Alan Falach 11 Brazil Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados: Nilton Mattos & Flávio Spaccaquerche 51 Publisher Rory Smith 12 Canada Fernandes Hearn LLP: James Manson 57 Published by 13 Chile Tomasello & Weitz: Leslie Tomasello Weitz 63 Global Legal Group Ltd. 59 Tanner Street 14 China Rolmax Law Office: Hector Fan & Captain Guimin Qiao 68 London SE1 3PL, UK 15 Colombia FRANCO & ABOGADOS ASOCIADOS: Javier Franco 75 Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 16 Croatia VUKIĆ & PARTNERS: Gordan Stanković 80 Email: [email protected] URL: www.glgroup.co.uk 17 Cyprus A. KARITZIS & ASSOCIATES L.L.C: Antonis J. Karitzis & Zacharias L. Kapsis 85 GLG Cover Design F&F Studio Design 18 Denmark Jensen Neugebauer: Mads Poulsen 92 GLG Cover Image Source 19 Dominican Republic Q.E.D INTERLEX CONSULTING SRL: Luis Lucas Rodríguez Pérez 98 iStockphoto 20 France DELVISO-AVOCATS: Henri Najjar 104 Printed by Stephens & George 21 Germany KOCH DUKEN BOËS: Dr. Axel Boës & Henrike Koch 110 Print Group 22 Greece DANIOLOS LAW FIRM: John Markianos-Daniolos 116 August 2019 23 India Mulla & Mulla & Craigie Blunt & Caroe: Shardul Thacker 122 Copyright © 2019 Global Legal Group Ltd. 24 Indonesia SSEK Indonesian Legal Consultants: Dyah Soewito & Stephen Igor Warokka 130 All rights reserved 25 Ireland Noble Shipping Law: Helen Noble 136 No photocopying 26 Israel Harris & Co.: John Harris & Yoav Harris 142 ISBN 978-1-912509-89-8 ISSN 2052-5419 27 Italy Dardani Studio Legale: Marco Manzone & Lawrence Dardani 147
Strategic Partners 28 Japan Yoshida & Partners: Norio Nakamura & Taichi Hironaka 153 29 Korea Jipyong LLC: Choon-Won Lee & Dahee Kim 158 30 Malta Dingli & Dingli: Dr. Tonio Grech & Dr. Fleur Delia 164 31 Mexico FRANCO DUARTE MURILLO ARREDONDO LÓPEZ RANGEL: Rafael Murillo 169 32 Mozambique VdA: João Afonso Fialho & José Miguel Oliveira 173
PEFC Certified 33 Netherlands Van Traa Advocaten N.V.: Vincent Pool & Jolien Kruit 179 This product is from sustainably managed forests and controlled sources
PEFC/16-33-254 www.pefc.org Continued Overleaf
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Country Question and Answer Chapters: 34 Nigeria Banwo & Ighodalo: Kashimana Tsumba & Tenilola Olowu 185 35 Norway Advokatfirmaet Selmer AS: Norman Hansen Meyer & Nils Bugge 190 36 Panama Arias, Fábrega & Fábrega: Jorge Loaiza III 196 37 Peru Estudio Arca & Paoli Abogados: Francisco Arca Patiño & Carla Paoli Consigliere 208 38 Poland Rosicki, Grudziński & Co.: Maciej Grudziński & Piotr Rosicki 214 39 Portugal Ana Cristina Pimentel & Associados, Sociedade de Advogados, SP RL: Ana Cristina Pimentel 221 40 Russia NAVICUS: Konstantin Krasnokutskiy 226 41 South Africa Shepstone & Wylie Attorneys: Edmund Christian Greiner & Pauline Helen Kumlehn 232 42 Spain Meana Green Maura y Asociados SLP (MGM&CO.): Jaime Soroa & Edmund Sweetman 238 43 Sri Lanka D. L. & F. DE SARAM: Jivan Goonetilleke & Savantha De Saram 244 44 Switzerland ThomannFischer: Stephan Erbe 251 45 Taiwan Lee and Li, Attorneys-at-Law: Daniel T.H. Tsai 255 46 Turkey Esenyel|Partners Lawyers & Consultants: Selcuk S. Esenyel 260 47 Ukraine BLACK SEA LAW COMPANY: Evgeniy Sukachev & Anastasiya Sukacheva 265 48 United Arab Emirates Ince: Mohamed El Hawawy 271 49 United Kingdom Clyde & Co LLP: Andrew Bicknell & Hatty Sumption 277 50 USA Foley Gardere, Foley & Lardner LLP: Peter A. McLauchlan & Anacarolina Estaba 283 51 Venezuela Sabatino Pizzolante Abogados Marítimos & Comerciales: José Alfredo Sabatino Pizzolante & Iván Darío Sabatino Pizzolante 293
EDITORIAL
Welcome to the seventh edition of The International Comparative Legal Guide to: Shipping Law. This guide provides corporate counsel and international practitioners with a comprehensive worldwide legal analysis of shipping laws and regulations. It is divided into two main sections: Seven general chapters, which explore topical issues affecting shipping law from a cross-border perspective. Country question and answer chapters. These provide a broad overview of common issues in shipping laws and regulations in 44 jurisdictions. All chapters are written by leading shipping lawyers and industry specialists, and we are extremely grateful for their excellent contributions. Special thanks are reserved for the contributing editor Andrew Bicknell of Clyde & Co LLP for his invaluable assistance. Global Legal Group hopes that you find this guide practical and interesting. The International Comparative Legal Guide series is also available online at www.iclg.com.
Alan Falach LL.M. Group Consulting Editor Global Legal Group [email protected] Chapter 24 Indonesia Dyah Soewito
SSEK Indonesian Legal Consultants Stephen Igor Warokka
relating thereto and by the Protocol of 1997 (“MARPOL”), 1 Marine Casualty by way of Presidential Decree No. 46 of 1986 and Presidential Regulation No. 29 of 2012. 1.1 In the event of a collision, grounding or other major c. The International Convention on Civil Liability for Oil Pollution casualty, what are the key provisions that will impact Damage of 1969 and its amendment of 1992 (“CLC”), by way upon the liability and response of interested parties? of Presidential Decree No. 52 of 1999. In particular, the relevant law / conventions in force in Indonesia has not ratified the International Oil Pollution Compensation relation to: (“IOPC”) Fund Convention of 1992 and the Supplementary Fund Protocol of 2003. (i) Collision Under the Shipping Law, all crew members in a vessel are obliged With regard to liability in a collision, the Indonesian Commercial to prevent and mitigate environmental pollution from their vessel. Code (“ICC”), which was enacted in the 19th century, provides that: In addition, vessel owners or operators are obliged to procure an a. If the collision is caused by force majeure, or if there are insurance policy for their pollution liability. Failure to comply may doubts as to the cause of the collision, the damages shall be result in imprisonment and/or fines for vessel owners or operators. borne by those who have suffered them. (iii) Salvage / general average b. If the collision is caused by the fault of one of the colliding We are not aware of any salvage conventions that have been ratified vessels, liability to remedy the damages shall be borne by the vessel that committed the fault. Wirjono Prodjodikoro, an by Indonesia. Indonesian legal scholar, stated that a collision caused by a The Shipping Law was further implemented by the Minister of defect (unseaworthiness) of the vessel shall also be Transportation (“MOT”) Regulation No. PM 71 of 2013 on Salvage considered as the fault of the vessel. and Underwater Works, as lastly amended by MOT Regulation No. c. If the collision is caused by the fault of two or more vessels, PM 38 of 2018 (“MOT Reg 71/2013, as amended”). This regulation the liability of each vessel is in proportion to the degree of defines salvage as the provision of aid to a vessel and/or its cargo that their respective faults. Prodjodikoro stated that the test of has suffered a vessel accident or perils of the sea, including removing fault is the impact of the fault on the damage suffered, the shipwreck or underwater obstacle or other object. MOT Reg irrespective of the intention (culpa) of the vessel. 71/2013, as amended as well as Government Regulation No. 24 of d. If a vessel being towed collides due to the fault of the towing 2018 regarding Electronically Integrated Business Licensing Service vessel, the owners of both the towed and the towing vessel (“GR 24/2018”) provides that a salvage operation may only be shall be jointly and severally responsible for the damage. conducted by a business entity specifically engaging in the salvage Upon declaring independence in 1945, Indonesia decided that the business, fulfils the technical requirements under MOT Reg 71/2013, articles of the ICC would continue to be followed unless they were as amended and holds Commercial and Operational License issued by contrary to the Indonesian Constitution. the Online Single Submission (“OSS”) system under the name of Under Law No. 17 of 2008 regarding Shipping (“Shipping Law”), Salvage and Underwater Works Business Approval (Persetujuan unless it can be proven otherwise, the master of the vessel shall be Perusahaan Salvage dan Pekerjaan Bawah Air). held liable in a vessel accident. Under Article 547 of the ICC, a salvage reward shall be paid for any As to collisions, Indonesia has ratified the 1972 International salvage operation. Such reward must be paid even if the salvage Regulations for Preventing Collisions at Sea, by way of Presidential operation is not successful, unless otherwise agreed by the parties. Decree No. 50 of 1979, but has not ratified the Convention for the The salvor is also entitled to receive compensation for costs, losses Unification of Certain Rules of Law with respect to Collisions and loss of profits. Between Vessels. Indonesia has not ratified the York-Antwerp Rules, but parties may (ii) Pollution agree to incorporate such rule within their agreements. In the Indonesia has ratified the following treaties: absence of a contractual provision on general average, the provisions of the ICC shall apply. a. The United Nations Convention on the Law of the Sea of 1982 (“UNCLOS”), by way of Law No. 17 of 1985. (iv) Wreck removal b. The International Convention for the Prevention of Pollution Indonesia has not ratified the Nairobi International Convention on from Ships of 1973, as modified by the Protocol of 1978 the Removal of Wrecks of 2007.
130 WWW.ICLG.COM ICLG TO: SHIPPING LAW 2019 © Published and reproduced with kind permission by Global Legal Group Ltd, London owner toprovideacashdepositbeusedaslimitationfund. a limitationfund.Inpractice,shippermayrequestthevessel Indonesian lawdoesnotspecificallyregulatetheformoramountof (vi) been amendedsinceIndonesia’s independencein1945. enacted duringtheDutchoccupationofIndonesiaandithasnot claims liability. The ICCuses50guldenbecausethewas deducted fromthegrosstonnagetodeterminenetforcargo collision liability. However, thetonnageofsuchmachineryshallbe added tothegrosstonnagedeterminenetforvessel mechanically movedvesselshallhavethetonnageofmachinery Indies occupation)percubicmetreofthenettonnageavessel. A 50 gulden(thecurrencyusedbytheNetherlandsduringEast a vesselownerduetocollisionorcargo claimsislimitedto Based ontheoriginaltextof Article 474oftheICC,liability Protocols. Liability forMaritimeClaimsof1976,includingtheir Amendment 1957 ortheInternationalConventiononLimitationof the LimitationofLiabilityOwnersSea-GoingShips Indonesia hasnotratifiedtheInternationalConventionrelatingto (v) with agrosstonnageoflessthan35tonnes. vessels, statevesselsusedforgovernmentalduty, andmotorvessels Government ofIndonesia. This requirementiswaivedforwar indemnity insurancefromancompanyrecognisedbythe insure theirvesselswithwreckremovalinsuranceorprotectionand MOT Reg71/2013,asamendedalsorequiresvesselownersto days aftersuchvesseland/orcargo sank. cargo thataredisturbingnavigationalsafetyandsecuritywithin180 amended, obligesavesselownertoremoveitsshipwreckand/or © Published and reproduced with kindpermission byGlobal LegalGroup Ltd, London The ShippingLaw, asimplementedbyMOT Reg71/2013,as SSEK IndonesianLegalConsultants ICLG TO: SHIPPING LAW2019 Rules. Indonesia hasnotratifiedtheHague/Hague-Visby/Hamburg/Rotterdam damage orfailuretodeliverwascaused by partially orentirely, oranydamagestothecargo, unlesssuch any damagesarisingfromitsfailuretodelivercargo, whether The ICCprovidesthatacarrierisliabletoprovidecompensationfor 2.1 preventing similaraccidentsinthefuture. investigations relatedtovesselaccidentsforthepurposeof Transportasi or“KNKT”)establishedthe toconduct Transportation SafetyCommittee( Presidential RegulationNo.2of2012regardingtheNational examined further. investigation totheShippingCourt( authority. The portauthoritymayforwardtheresultofits respect tovesselaccidentsshallbeconductedbytherelevantport The ShippingLawprovidesthatanypreliminaryinvestigationwith 1.2 2 The limitationfund Limitation ofliability grounding orothermajorcasualty? What aretheauthorities’ powersofinvestigation/ laws relevanttomarinecargoclaims? What aretheinternationalconventionsandnational Cargo Claims casualty responseintheeventofacollision,
Komite NasionalKeselamatan Mahkamah Pelayaran)tobe
force majeure
.
2.3 was promulgatedinthe19 Indonesian CivilCode.LiketheICC,Code claim onthebasisofanunlawfulact(similartotort)under Aside fromtheICC,aninjuredpartyisalsoentitledtosubmitacivil carrier; and(iii)compensationforcargo damages. the consignee;(ii)carriageofpassengersandluggageagainst limit tobringlegalclaimsrelatedto:(i)thepaymentbemadeby Unless otherwiseagreedbytheparties,ICCprovidesaone-year of thecargo orthecargo wasquantifiedbeforethecarrier. claim, unlessthecarriershouldhaveknownconditionandtype clause tothiseffect, thecarrierwillnotberesponsibleforanycargo the “content/nature/amount/weight/sizeisunknown”,orasimilar Article 513oftheICCprovidesthatifbillladingstates damages arisingfromthecarrier’s allegeddefault. is entitledtobringcargo claimsagainstthecarrierforlossor bill oflading,thecargo ownerorthecargo insurer(by subrogating) In practice,eithertheshipper, theconsigner, thelawfulholderof 2.2 that isissuedifthevesselinvolved inacriminalorcivilcase. The harbourmaster attherelevantport, basedonawrittencourtorder The ShippingLawprovidesthat a vesselmaybearrestedbythe 4.1 passenger andthethirdparty. third-party agreement,thecarrierisresponsibleforboth the deceasedforloss.Ifpassengeriscarriedbasedona responsible forcompensatingthespouse,children,andparentsof themselves. Shouldtheinjuryresultindeath,carrieris related tothevoyage,unlessinjurywascausedbypassengers compensate forlossescausedbyinjuriessuffered bypassengers vessel untilwhentheydisembark. The carrierisobligedto passenger safetystartingfromwhentheembarkson Article 522oftheICCregulatesthatcarrierisresponsiblefor Carriage ofPassengersandtheirLuggagebySea1974. Indonesia hasnotratifiedthe Athens Conventionrelatingtothe 3.1 prior tothejourney. the cargo, unlessthecarrier kneworshouldhaveknownthenature caused byincorrectorincompleteinformationrelatedtothenatureof The carriershallbeentitledtoreceivecompensationfordamages Indonesian independence. 4 3 of cargo? claims againsttheshipperrelatingtomisdeclaration In whatcircumstancesmaythecarrierestablish brought againstthecarrier? What arethekeyprinciplesapplicabletocargoclaims owner andtheapplicableprocedure? obtain securityforamaritimeclaimagainstvessel What aretheoptionsavailabletoapartyseeking Arrest andSecurity resolution ofmaritimepassengerclaims? What arethekeyprovisionsapplicableto Passenger Claims
th centuryandhasnotbeenamendedsince
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Indonesia
131 Indonesia 132 Indonesia was written,suchregulationhasnotbeenissued. provided bytheMOT regulation.However, asofthedatethatthis procedures forvesselarrestatIndonesianportsaresupposedtobe initiating civilcourtproceedings.Furtherprovisionsonthe in acivilcaserelatingtomaritimeclaimsmaybeissuedwithout 3. 2. 1. vessel aregivenpriorityright,namely(inorderofpriority): Article 316oftheICCprovidesthatseveralreceivablesovera 4.4 court toissueanarrestwarranttheharbourmaster. constitute acivilcase. Thus, theplaintiff insuchacasemayaskthe civil case.Claimsarisingfromthesaleandpurchaseofaship court orderthatisissuedifthevesselinvolvedinacriminalor arrested bytheharbourmasteratrelevantport,basedonawritten As discussedabove,theShippingLawprovidesthatavesselmaybe 4.3 bases foramaritimeclaim. that costsrelatedtobunkeringactivitiesareoneofthelegitimate Yes. The elucidationof Article 223oftheShippingLawprovides 4.2 Shipping Lawfurtherprovidesthatacourtorderforvesselarrest SSEK IndonesianLegalConsultants © Published and reproduced with kindpermission byGlobal LegalGroup Ltd, London WWW.ICLG.COM d. c. b. a. The ShippingLawprovidesthatmaritimereceivablesinclude: receivables mustbeprioritised. against receivablessecuredbythevessel,paymentofmaritime receivables forwhichavesselactsassecurity. Uponsuchclaim (referred toas“prioritisedmaritimereceivables”)uponclaims Under theShippingLaw, apartymayexercisemaritimelien rented object,andsalvagecosts)donotapplytovessels. (including butnotlimitedtocourtfees,rentandreparationfeesofa rights providedunder Article 1139 oftheIndonesianCivilCode Further, Article 316oftheICCprovidesthatgeneralpriority 4. Article 1134 oftheIndonesian CivilCode,whichprovidesthatcertain and registeredreceivables. This isconsistentwiththeprovision of receivables shallbeprioritisedover paymentofpledges,mortgage, Article 66oftheShippingLawprovides thatpaymentofmaritime e. Is itpossibletoarrestavesselforclaimsarisingfrom relating tobunkerssuppliedbythemthatvessel? and/or contractual)toarrestavesselforclaim Is itpossibleforabunkersupplier(whetherphysical options areavailable? claim, includingexerciseofliensovercargo,what vessel owner(ordemisecharterer)foramaritime Where securityissoughtfromapartyotherthanthe contracts forthesaleandpurchaseofaship? other shippingcosts. Salvage reward,pilotagecost,signalcostandport employment agreementduringtheirtenureinthatvessel. Receivables ofthevesselmasterandcrewarisingfroman Cost ofseizureandauction. Payment ofportfeesorothershippingroutesandpilotagecosts. Payment forthesalvageofvessel. related totheoperationofvessel. Payment fordeathormedicalexpensesbodilyinjuries and crewofthevessel. Payment ofwages,costs,andotherpaymentstothemaster Collision claims. cargo, container, andbaggage. operation ofthevesselasidefrom lossordamagetothe Losses arisingoutofphysicallossordamagecausedbythe
international convention mustbedonethroughtheissuance ofalaw investigations andevidence-gatheringformaritimeclaims. Indonesian lawdoesnotspecificallyregulateproceduresfor 5.1 more commonlyusedthanaP&Iletterofundertaking. However, inpractice,abankguaranteeorcorporateis There isnomandatorytypeofsecurityunderIndonesianlaw. 4.5 regarding International Treaties (“ ratified theShip Arrest Convention. UnderLawNo.24of1999 Convention of 1999(“ShipArrest is asignatorytotheInternationalConvention onthe Arrest ofShips specific guidelinesforshiparrest under Indonesianlaw. Indonesia With regardtoshiparrest,aswestatedabove,there areasyetno 6.2 timescale applicabletomaritimeclaims. vessel arrestinIndonesia. Thus, thereisnotypicalprocedureor has notenactedanimplementingregulationontheprocedurefor the provisionsonvesselarrest. As discussedinsection4,Indonesia Shipping Law, maritimeclaimsareconductedinaccordancewith Shipping Law. However, undertheelucidationof Article 223 of the Maritime claimsarealreadyregulatedinIndonesiaunderthe 6.1 support theirclaims. Each partytoadisputehastheburdenproduceevidence discovery rule)inacourtproceedingasmeanstoobtainevidence. Indonesia doesnotrecognisegeneraldisclosureobligations(i.e.the 5.2 Liens of1993,bywayPresidentialRegulationNo.442005. Indonesia hasalsoratifiedtheInternationalConventiononMaritime maritime liens,thenapartymayfilecivilclaimtothedistrictcourt. regulated underthelaw. Iftherearenoprioritisedreceivablesor rights maybeprioritisedoverpledgeormortgageifitisexpressly 5 6 witnesses orpre-actiondisclosure? preservation ofphysicalevidence,examination claims includinganyavailableproceduresforthe obtain accesstoevidenceinrelationmaritime What stepscanbetaken(andwhen)topreserveor Evidence undertaking. acceptable; forexample,bankguarantee,P&Iletterof In relationtomaritimeclaims,whatformofsecurityis mind. jurisdiction thatanypotentialpartyshouldbearin Highlight anynotableprosandconsrelatedtoyour resolution. arbitral bodies);andiii)mediation/alternativedispute commercial courts);ii)arbitration(includingspecialist national courts(includinganyspecialisedmaritimeor applicable tomaritimeclaimsconductedthrough:i) Describe thetypicalprocedureandtimescale Procedure proceedings? What arethegeneraldisclosureobligationsincourt
ICLG TO: SHIPPING LAW2019 Treaties Law”),ratificationofan ”), althoughIndonesiahasnot
Indonesia
new claimintheIndonesiancourt. The foreigncourtjudgmentmaybesubmittedasevidenceinthe © Published and reproduced with kindpermission byGlobal LegalGroup Ltd, London Indonesian courttoenforceajudgmentawardedbyforeigncourt. enforceable inIndonesia. The partiesmustsubmitanewclaiminan Indonesian lawdoesnotrecogniseforeigncourtjudgmentsas 7.1 ( SSEK IndonesianLegalConsultants ICLG TO: SHIPPING LAW2019 issued bytheOSS systemonbehalfoftheMOT. 24/2018, aSIUPAL isconsideredasaBusinessLicence,andwill be Izin UsahaPerusahaan Angkutan Lautor“SIUPAL”). UnderGR must obtainaSea Transportation CompanyBusinessLicense ( In ordertoengageintheseatransportation business,acompany (i) 8.1 a. arbitral awardisrecognisedandenforceableinIndonesiaif: Alternative DisputeResolution(“ Pursuant toLawNo.30of1999regarding Arbitration and Convention”), bywayofPresidentialDecreeNo.341981. Enforcement ofForeign Arbitral Awards of1958(“ Indonesia hasratifiedtheConventiononRecognitionand 7.2 yet toimplementthoseprinciples. Indonesia hasrecognisedthebasicprinciplesofshiparrest,but process ofratifyingtheShip Arrest Convention.Inconclusion, which thePresidentinstructedlegislaturetoaccelerate regarding theEmpowermentofNationalShippingIndustry, in of IndonesiaenactedPresidentialInstructionNo.52005 ratification ofthesameintolaw. We notethatin2005,thePresident Indonesia, itisstillnotapplicableinIndonesiaabsentthe the Ship Arrest ConventionhasbeensignedbytheGovernmentof should havebeenratifiedbywayofapresidentialdecree. Although Articles 10and11 ofthe Treaties Law, theShip Arrest Convention case maybe,inordertobeenforceableIndonesia.Pursuant e. d. c. b. undang-undang) orpresidentialdecree( 7 8 of arbitrationawards. procedures affectingtherecognitionandenforcement Summarise thekeyprovisionsandapplicable of foreignjudgments. procedures affectingtherecognitionandenforcement Summarise thekeyprovisionsandapplicable Foreign Judgmentsand Awards or likelyfuturedevelopmentsthatmaybeofinterest. may beworthyofnote,togetherwithanycurrenttrends Describe anyotherissuesnotconsideredabovethat Updates andDevelopments Electronically integratedbusinesslicence treaty thatrecognisesforeignarbitralawards. is, alongwithIndonesia,apartytobilateralormultilateral The awardisgivenbyanarbitratorortribunalinastatethat Court. receiving anexecutionorderfromtheIndonesianSupreme parties indispute,theawardmayonlybeenforcedafter If theawardinvolvesRepublicofIndonesiaasone Jakarta DistrictCourt. The awardhasreceivedanexecutionorderfromtheCentral The awarddoesnotcontravenepublicorder. scope ofcommerciallawinIndonesia. The awardislimitedtowhatconsideredfallwithinthe
Arbitration Law”),aforeign keputusan presiden), asthe
New York
Surat
Nasional Pencegahan Pencemaran (“MOT Reg39/2017 of 2017regardingtheRegistrationandNationality Vessels Shipping Law, thegovernmentenactedMOT RegulationNo.PM39 jurisdiction. To implementtheprovisionsofICCand only bevalidifthevesselhasalreadybeenregisteredina The ShippingLawstatesthatanIndonesianvessel’s legalstatuscan (ii) commitments undertherespectiveBusinessLicencearefulfilled. Therefore, abusinessmayonlybeginitsoperationsoncethe effective oncetherequiredcommitmentsaremetbyapplicant. The BusinessLicensewillclearlystatethatitonlybecome f. evidenced byaNationalPollution PreventionCertificate( waters mustmeetcertainpollution prevention andcontrolstandards, Pursuant totheShippingLaw, anyvesseloperatinginIndonesian (iv) and MOT Reg39/2017. Regulation No.39of2016regarding Vessel LoadLineandLoading, Education, Training, Certification,andDutiesofSeafarers,MOT amended byMOT RegulationNo.140of2016regardingthe Vessel Measurement,MOT Regulation No.PM70of2013,as Safety Management,MOT RegulationNo.PM8of2013regarding provisions ofMOT RegulationNo.PM45of2012regarding Vessel The abovecertificatesareissuedbytheMOT basedonthe e. d. c. b. a. the followingcertificates: fulfill certainstandardrequirements,evidencedbytheissuanceof Pursuant totheShippingLaw, acompanyowningvesselmust (iii) 51% ofthesharesareownedbyanIndonesiancitizen. or isownedbyanIndonesianjoint-venturecompanyinwhichatleast Indonesian citizenoralegalentityestablishedunderlaw, if ithasagrosstonnageofatleastseventonnes,isownedbyan Shipping LawandMOT Reg 39/2017,avesselmayonlyberegistered It shouldbenotedthataccordingtotheICC,asfurtherregulatedin director oftheDGST. with avesselregistrar, agovernmentofficial appointedbythe way ofbareboatcharterandleasing. Vessel registrationcanbedone granting ofmortgage;and(iii)otherproprietaryrights,suchasby registration includestheof:(i)ownershipright;(ii) application iscompletedafterfillingouttherequisiteinformation. generated bytheOSSsystemanddeliveredtoapplicantoncean licence. This meansthataBusinessLicensewillautomaticallybe through theOSSwillbefollowedbyissuanceofa“temporary” the OSSsystem.UnderOSS,anynewlicenceapplicationmade 89/2018”) toaligntheseatransportationlicensingprocedureswith Licensing SysteminSea Transportation Sector(“ Procedures, andCriteriaoftheElectronicallyIntegratedBusiness Regulation No.89of2018regardingtheNorms,Standards, Please notethattheMOT hasissuedaministerialregulationMOT g. Vessel registration Keselamatan Document ofCompliance( only formannedvessels. tonnage equaltoorlarger than500tonnes. Keselamatan), onlyformannedcargo vesselswithagross Pollution Prevention Certificate Safe ManningCertificate( Load LineCertificate( Safety Certificate( Tonnage Certificate( Kapal Vessel NationalityCertificate( tonnage equaltoorlarger than500tonnes. Safety ManagementCertificate( General VesselCertification ). ), onlyformannedcargo vesselswithagross
”). MOT Reg39/2017statesthatvessel
Sertifikat Keselamatan Surat Ukur). Sertifikat GarisMuat
Dokumen Penyesuaian ), whichwillbeissued basedon Sertifikat PengawakanKapal Surat Tanda Kebangsaan
WWW.ICLG.COM Sertifikat Manajemen ).
Indonesia ).
Manajemen MOT Reg. Sertifikat
),
133 Indonesia 134 Indonesia issue aClassificationCertificate( under MOT Reg7/2013,asamended. The classification agencywill classification agencyrecognisedbytheGovernmentofIndonesia Transportation within theCarriageofPassengerand/orGoodsinDomestic License toUseForeign Vessels forOther Activities NotIncluded 92/2018 regardingtheProcedureandRequirementtoObtain in domesticseatransportation.However, pursuanttotheMOT Reg types ofvesselsoperatinginIndonesianwatersthatarenotengaged are broadlyinterpretedtocovermostvessels,includingdifferent Indonesian-flagged vesselandIndonesiancrew. These provisions carried outbyanIndonesianshippingcompanyusing The ShippingLawrequiresthatdomesticseatransportationbe (vii) frequency spectrummustobtainaShipRadioStationCertificate. Licencing ofRadioFrequencySpectrum,avesselutilisingtheradio 2018 regardingProvisionsandProceduresontheOperation Minister ofCommunicationandInformaticsRegulationNo.9 Under LawNo.36of1999regarding Telecommunications and (vi) vessel. (“Persero This classificationisdoneeitherbyPT BiroKlasifikasiIndonesia Indonesian-Flagged Vessels(“ Regulation No.61of2014regardingClassificationObligationfor pursuant toMOT RegulationNo.7of2013,asamendedbyMOT Vessels operatinginIndonesiamustalsoundergo classification (v) c. b. a. additional certifications,namely: in internationalwatersfromtimetowillberequiredobtain Prevention ofMaritimeEnvironmentPollution. Vessels thatoperate the provisionsofMOT RegulationNo.PM29of2014regardingthe SSEK IndonesianLegalConsultants © Published and reproduced with kindpermission byGlobal LegalGroup Ltd, London WWW.ICLG.COM Internasional PencegahanPencemaranOlehUdara Internasional PencegahanPencemaranOlehMinyak Cabotage principle Ship RadioStationCertificate Vessel Classification Kotoran). (Sertifikat InternasionalPencegahanPencemaranOleh International SewagePollutionPreventionCertificate International Air PollutionPreventionCertificate( International OilPollutionPreventionCertificate( ”), astate-ownedenterprise,oranotherlocalforeign (“MOT Reg92/2018”),specifictypesofforeign- MOT Reg7/2013,asamended”).
Sertifikat Klasifikasi ) forthe Sertifikat Sertifikat ). ).
e. d. c. Tel: +62215212038/Email: entertainment companyinIndonesia. advising aforeigncompanyontheacquisitionoflarge leisure groupintheacquisitionofaluxuryresortBali,and representative office inIndonesia, assistingamajorhospitalityand representing aforeignconstructioncompanyinestablishing company onthelegalaspectofoilandgastradinginIndonesia, His morerecentexperienceincludesadvisingaforeignoilandgas finance, shippingandmaritimeaffairs, andoilgaslaw. capital investment,constructionandrealestate,banking related togeneralcorporatelaw, mergers andacquisitions,foreign Revaldi hasbeeninvolvedinavarietyofprojects,includingthose chapter. Heisan Associate atSSEK. Wirabuana forhisinvaluableassistanceinthewritingofthis The authorswouldliketoacknowledgeRevaldiNathanael Acknowledgment b. a. Annex ItoMOT Reg92/2018. These activitiesinclude: Indonesian watersuptotheendofDecember2020isprovidedin A listofforeign-flaggedvesselsthatcanconductactivitiesin SIUPAL holders. Penggunaan Kapal Asing decree containingtheForeign Vessel Utilization Approval ( Reg 92/2018. The cabotageexemptionisgrantedintheformofanMOT Laut or“SIUPAL”) aftermeetingtherequirementsprovidedinMOT Company BusinessLicense( vessels maybeoperatedinIndonesiabytheholderofaShipping activities maybeexemptedfromcabotagerules.Suchforeign-flagged flagged vesselsoperatinginIndonesianwatersforspecifictypesof g. f. h. dredging; offshore operationalsupport; offshore construction; drilling; oil andgassurvey; floating powerplant;and salvage andunderwaterwork; port constructionvessel.
or“PPKA”),whichcanonlybeissuedto
ICLG TO: SHIPPING LAW2019 Surat IzinUsahaPerusahaan Angkutan
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© Published and reproduced with kindpermission byGlobal LegalGroup Ltd, London SSEK IndonesianLegalConsultants ICLG TO: SHIPPING LAW2019 employment law, foreigninvestment,mergersand acquisitions,mining,power, construction. projectsandnaturalresources,realestate Dyah hasbeenrecognisedby on theimportationandreflaggingofdredgers. shipping entity, andadvisedan Australian dredgingmarinecompany European contractoronapossiblejointventurewithanIndonesian restrictions underIndonesia’s shippinglaw, representedaleading has assistedaEuropeanmultinationalinnavigatingforeignownership services totheoilandgasindustryinan$870millionleasedeal.She Most recently, sheadvisedaglobalprovideroffloatingproduction drilling companieswithallaspectsoftheiroperationsinIndonesia. Dyah assistsmultinationalandjoint-ventureshippingoffshore corporate andcommerciallaw. specialises inshippingandmaritimelaw, foreigninvestment,and the headoffirm’s award-winningshippingpractice.She Dyah SoewitoisaFoundingPartnerofSSEKLegalConsultantsand SSEK isafull-serviceIndonesianlawfirmandenjoysparticularlystronginternationalreputationinshippingmaritime Indonesian corporatelawwithaglobaloutlooktohelpclientsminimiseriskandmaximisetheirbusinessinvestmentgoals. insightinto regularly recognisedbytopindependentlegaldirectoriesasaleaderineverymajorpracticearea.SSEKcombinesanunsurpassed SSEK hasbeendescribedasa“high-caliberandsophisticated”firmthatgives“thorougheffective advice”( complex transactionsacrossallindustriesandpracticeareas,helpingthemrealisetheirbusinessinvestmentgoals. domestic companiesinnovativeandtimelysolutionstotheirreal-worldproblems.SSEK’s clientsonthemost experiencedlawyersareabletoadvise local knowledgeandexpertiseofitsmorethan26yearspracticewiththeglobaloutlookaward-winninglawyerstooffer multinationalsand combinesthe SSEK LegalConsultantswasformedin1992andtodayisoneofthelargestmosthighlyregardedlawfirmsIndonesia. IFLR1000 law, realestateandcorporatelaw. asoneoftheleadingpractitionersinIndonesiashipping URL: Email: Tel: Indonesia Jakarta 12920 Jl. Jend.SudirmanKav. 28 12–14 SSEK IndonesianLegalConsultants Dyah Soewito
th Chambers &Partners www.ssek.com [email protected] +62 215212038 Floors,Mayapada Tower I
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and
and regulationsforJapanesecompaniesdoingbusinessinthecountry. Japan. Duringhissecondment,StephenadvisedonIndonesianlaws Matsumoto, oneofthelargestandmosthighlyregardedlawfirmsin In 2015,Stephenwassecondedtothe Tokyo offices ofMoriHamada& Indonesian cabotagelaws. advising shippingcompaniesonforeignownershiprestrictionsand connection withafacilityagreementsyndicatedlenders;and advising andrepresentinganIndonesianshippingcompanyin foreign shippingcompanyontheagencybusinessinIndonesia; shipping companiesintheacquisitionandsaleofvessels;advisinga Stephen’s morerecentexperienceincludesrepresentingvariousforeign related tocommercialtransactions. immigration lawandnegotiationswithvariousgovernmentofficials corporate law, mergersandacquisitions,foreigncapitalinvestmentlaw, wide rangeofprojects,includingshippingandmaritimelaw, general Stephen IgorWarokka isaPartneratSSEK.Stephen isinvolvedina Jakarta 12920 Jl. Jend.SudirmanKav. 28 Email: Tel: Indonesia 12–14 SSEK IndonesianLegalConsultants Stephen IgorWarokka URL:
th [email protected] +62 215212038 www.ssek.com Floors,Mayapada Tower I
Chambers Asia-Pacific
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Indonesia ). SSEKis
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