Shipping Law in Indonesia – Salvage

Legal Updates
Shipping Law in Indonesia – Salvage
16 September 2019

By Dyah Soewito and Stephen Igor Warokka

We are not aware of any salvage conventions that have been ratified by Indonesia.

The Indonesian Shipping Law (Law No. 17 of 2008) was further implemented by Minister of Transportation (\"MOT”) Regulation No. PM 71 of 2013 on Salvage and Underwater Works, as lastly amended by MOT Regulation No. PM 38 of 2018 (\"MOT Reg 71/2013, as amended”). This regulation defines salvage as the provision of aid to a vessel and/or its cargo that has suffered a vessel accident or perils of the sea, including removing the shipwreck or underwater obstacle or other object.

MOT Reg 71/2013, as amended as well as Government Regulation No. 24 of 2018 regarding Electronically Integrated Business Licensing Service (\"GR 24/2018”) provides that a salvage operation may only be conducted by a business entity specifically engaging in the salvage business, fulfils the technical requirements under MOT Reg 71/2013, as amended and holds Commercial and Operational License issued by the Online Single Submission (\"OSS”) system under the name of Salvage and Underwater Works Business Approval (Persetujuan Perusahaan Salvage dan Pekerjaan Bawah Air).

Under Article 547 of the Indonesian Commercial Code (\"ICC”), a salvage reward shall be paid for any salvage operation. Such reward must be paid even if the salvage operation is not successful, unless otherwise agreed by the parties. The salvor is also entitled to receive compensation for costs, losses and loss of profits.

Indonesia has not ratified the York-Antwerp Rules, but parties may agree to incorporate such rule within their agreements. In the absence of a contractual provision on general average, the provisions of the ICC shall apply.

This first appeared in The International Comparative Legal Guide to: Shipping Law 2019, published by Global Legal Group. You can find the full chapter here

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

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