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Indonesia has ratified the 1972 International Regulations for Preventing Collisions at Sea, by way of Presidential Decree No. 50 of 1979, but has not ratified the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels. Liability in the event of ship collisions is also regulated by the Indonesian Commercial Code (ICC).

Article 535 of the ICC provides that, if a vessel collision occurs due to an accident or an act of force majeure, or if there is doubt concerning the cause of the collision, damages shall be borne by those who have suffered losses. Pursuant to Article 536 of the ICC, if a vessel collision is the fault of one of the colliding vessels, the damages shall be borne by the vessel entrepreneur (pengusaha kapal) who has committed the fault.

As stated in Article 537 of the ICC, if a vessel collision occurs due to the fault of both colliding vessels, the liability of each party will be proportionate to the fault committed. A judge appointed by the party claiming indemnity will establish the extent of this liability. If the judge fails to establish the extent of the liability, the proportion of liabilities will be equal for both parties.

Indonesia has not yet ratified the 1989 International Convention on Salvage or any other protocols or conventions on salvage. It has enacted Ministry of Transportation (MOT) Regulation No. 71 of 2013 regarding Salvage and/or Underwater Works, as last amended by MOT Regulation No. 38 of 2018 regarding the Second Amendment of MOT Regulation No. 71 of 2013 regarding Salvage and/or Underwater Works. This regulation provides that loss or damage to the skeleton of ships and their goods is the liability of the ship’s owner, as are any fees that arise.

Excerpted from the Shipping 2024 Chambers Global Practice Guide, published by Chambers and Partners.

Find Shipping 2024: Indonesia 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. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

WRITTEN BY

For further information, please contact:

Stephen Igor Warokka – SSEK,
STEPHENWAROKKA@SSEK.COM

Stephen Igor Warokka - SSEK. Stephen Igor Warokka, a partner at SSEK, specializes in labor, immigration, and maritime law, and is active in corporate law. He advises on Indonesian law and contributes to policy shaping, serving in leadership roles within various organizations.

Stephen Igor Warokka is a partner in SSEK’s labor and employment practice and a supervising partner of the firm’s immigration law and work permit, and shipping and maritime law practices. He also is heavily involved in projects related to general corporate law, mergers and acquisitions, foreign capital investment law, and negotiations with various government institutions.

In 2015, Stephen was seconded to the Tokyo offices of Mori Hamada & Matsumoto, a full-service international law firm and one of the largest and most highly regarded law firms in Japan. During his three-month secondment, Stephen advised on Indonesian laws and regulations for Japanese companies doing business in the country. He organized and spoke at a seminar for Mori Hamada & Matsumoto clients on the Indonesian legal and regulatory framework and gave presentations on Indonesian shipping law and foreign capital investment.

In 2019, Stephen was heavily involved in the process of helping to shape the contents of a new Indonesian Minister of Manpower decree on those positions that can be held by expatriate employees in various business sectors. He met with foreign business chambers in Jakarta to help coordinate their input on the draft decree, helped prepare and amend letters from the business chambers to the Ministry of Manpower, and met with the Manpower Ministry, the Vice President’s Office and the Coordinating Ministry for Maritime Affairs.

Stephen was named to the Board of Governors of the American Chamber of Commerce in Indonesia in 2022. He heads the International Relations Division of the Indonesia Labor Law Consultants Association, an independent organization that provides input to the government on employment-related laws and regulations. Stephen also is the secretary of the UC Berkeley alumni organization Berkeley Club of Indonesia.

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