Carriage of Goods by Sea and Bills of Lading in Indonesia

Originally published in Lexology Panoramic: Shipping 2027.

By Setyawati Fitrianggraeni, S.H., LL.M., FCIArb., FAIADR, Reynalda Basya Ilyas, and Tiyana Sigi Pertiwi, S.H., LL.M.

In brief

Indonesia has not ratified the Hague Rules, the Hague-Visby Rules, the Hamburg Rules, or the Rotterdam Rules, so carriage of goods by sea is governed by domestic law, principally the Commercial Code and the Shipping Law. A bill of lading can incorporate charterparty terms, including jurisdiction and arbitration clauses, but only where the bill’s wording refers to the charterparty or the holder is also a charterparty party. Carriers face full liability for delivery without production of the bill of lading, and maritime liens under the Shipping Law still lack implementing regulations on how they are exercised. The law is stated as at 22 May 2026.

International conventions

Indonesia has not ratified any of the Hague Rules, the Hague-Visby Rules, or the Hamburg Rules, and has not ratified, accepted, approved, or acceded to the UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (the Rotterdam Rules).

Multimodal carriage

In Indonesia, multimodal carriage is governed by Government Regulation No. 8 of 2011 concerning Multimodal Carriage and Minister of Transportation Regulation No. 8 of 2012 concerning the Implementation and Commercialisation of Multimodal Carriage. The regulations do not specifically mention a bill of lading, but there is a multimodal transport document as the contractual basis for carriage.

Indonesia has been a signatory to the Association of Southeast Asian Nations (ASEAN) Framework for Multimodal Transport since 17 November 2005. This framework is ratified through Presidential Regulation No. 14 of 2016 concerning the Ratification of the ASEAN Framework Agreement on Multimodal Transport.

Title to sue

Article 510 of the Commercial Code states: “The legal holder has the right to demand delivery of the goods at the destination in accordance with the contents of the bill of lading.” However, besides the legal holder, cargo owners or the cargo insurers (by subrogation) are entitled to bring cargo claims against the carrier for any loss or damage arising out of the carrier’s alleged fault or the carrier’s default.

Charter parties

In general, since a bill of lading is evidence of a contract of carriage or serves as the contract itself, all provisions of the charterparty can be incorporated in the bill of lading, so long as it was agreed by the parties, based on the freedom of contract principle. This is because the bill of lading can contain matters agreed upon by the parties, including a jurisdiction or arbitration clause in a charterparty, the terms of which are incorporated in the bill, binding on a third-party holder or endorsee of the bill. However, according to the Indonesian Commercial Code, no connection should be considered between a charterparty and a bill of lading, unless wording in the bill of lading has made reference to incorporate the charterparty, or if the holder of the bill of lading is also a party to the charterparty.

As for incorporated arbitration clauses, the Arbitration Law impliedly recognises arbitration clauses incorporated from the terms of a charterparty written in a bill of lading.

Demise and identity of carrier clauses

There is no specific regulation or definition that recognises the “demise” clause or identity of carrier clause in Indonesia. The validity and bindingness of the clause will be based on the principle of freedom of contract.

Shipowner liability and defences

Generally, the shipowner is fully responsible for the cargo carried by the shipowner. However, if the shipowner can prove that the damage to the cargo was not the fault of or did not result from any negligence of the shipowner, then they are not responsible for the cargo.

Deviation from route

Generally, any consequences of deviation from a vessel’s route are governed in the contract.

Liens

Article 65 of the Shipping Law states that the following claims will give rise to maritime liens against the vessel in the context of a civil lawsuit:

Claims for wages and other sums due to the master, officers, and other members of the vessel’s complement in respect of their employment on the vessel, including costs of repatriation and social insurance contributions payable on their behalf.
Claims in respect of loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the vessel.
Claims for reward for the salvage of the vessel.
Claims for port, canal, and other waterway dues and pilotage dues.
Claims based on tort arising out of physical loss or damage caused by the operation of the vessel other than loss of or damage to cargo, containers, and passengers’ effects carried on the vessel.

Although the Shipping Law permits such maritime liens to be exercised, there are no implementing regulations as to how such liens should be exercised in practice, in comparison with other registered liens (mortgages and other property rights).

Delivery without bill of lading

The carrier is liable for the delivery of cargo without producing the bill of lading. There are no provisions that limit the carrier’s liability in such a situation and, in theory, the parties can regulate and limit the carrier’s liability by considering the applicable laws and regulations.

Shipper responsibilities and liabilities

The shipper must hand over the goods or cargo carried in accordance with when they received the goods and according to the agreed time. Any failure to fulfil this obligation due to the shipper’s fault or negligence may result in the shipper being held liable for the damages.

For advice on carriage of goods, bills of lading, and shipping disputes in Indonesia, contact Anggraeni and Partners at connect@ap-lawsolution.net.