Vessel mortgages in Indonesia fall under the authority and jurisdiction of the Ministry of Transportation. Pursuant to Articles 28 and 29 of Minister of Transportation (MOT) Regulation No. PM 39 of 2017 regarding the Registration and Nationality of Vessels (MOT Reg 39/2017), the beneficiaries of vessel mortgages may be Indonesian or foreign citizens, banks and financing or non-financing institutions (both national and international).
Vessel mortgages will only be granted following the submission of an application to a Vessel Registrar, accompanied by the following documents:
- a credit/loan agreement;
- the original grosse vessel registration deed or grosse deed of the vessel's title transfer; and
- power of attorney in notarial deed form (if such registration is registered by a proxy).
Following execution of the vessel mortgage deed by the mortgagor, the mortgagee and the Ministry of Transportation official, Article 31 of MOT Reg 39/2017 provides that the Vessel Registrar will then hand over a grosse mortgage deed as well as the vessel registration grosse deed or vessel transfer of title grosse deed to the mortgagee.
Pursuant to Article 33 of MOT Reg 39/2017, the assignment of a mortgage on a vessel requires the preparation of a deed of assignment of vessel mortgage. The receiver of the assignment of a vessel mortgage must submit an application to the Vessel Title Transfer and Registrar Official where the vessel is registered through SPKE. The following original documents are required for the application:
- proof of assignment of mortgage;
- original grosse vessel registration deed or grosse deed of the vessel's title transfer; and
- grosse deed of mortgage on vessels.
Ship Ownership and Mortgages Registry
Pursuant to Article 43 of MOT Reg 39/2017, the registration or documentation of ships shall be recorded within a daily register, master register and central register; the master register will be open to the public. Furthermore, the MOT has established the Electronic Vessel Registration System (Sistem Pendaftaran Kapal Elektronik– SPKE), an online system on which ship ownership and registration can be viewed and accessed by the public.
An application to the relevant Vessel Title Transfer and Registrar can be made to obtain a vessel legal status statement letter that indicates whether a mortgage has been imposed on a vessel.
Excerpted from the Shipping 2024 Chambers Global Practice Guide, published by Chambers and Partners.
Find Shipping 2024: Indonesia here.
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