Collision, Salvage, Wreck Removal, and Pollution 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

When a vessel sinks or runs aground in Indonesian waters, the owner must remove the wreck within 180 days, failing which the government may do so at the owner’s expense, and salvage must be carried out by a business entity specifically established for that purpose. Indonesia has ratified the COLREG 1972, the Nairobi Wreck Removal Convention 2007, and the CLC 1969 with its 1992 Protocol, but it has not ratified the 1910 Collision Convention or any salvage convention. This part explains wreck removal orders, the applicable international conventions, and the salvage regime. The law is stated as at 22 May 2026.

Wreck removal orders

Yes, the state or local authority can order wreck removal. The Harbour Master and the port state control officer (PSCO) have the authority to give a warning notice to the owner of wreckage to promptly remove wreckage from the shipping lane and to monitor the salvage or wreck removal activities. The Directorate of Maritime and Shipping Surveillance Unit has the authority to approve salvage or wreck removal operations and to issue a warning notice of suspension or revocation of operation licences to owners who do not comply with the regulations.

Under articles 203 and 321 of the Shipping Law, shipowners are obligated to remove the wreckage of their ship and/or its cargo which disturbs shipping safety and security after the ship has sunk within 180 days, failing which they are obligated to compensate the victims of maritime accidents caused by the wreckage, and shall be subject to imprisonment for a maximum of one year and a maximum fine of Rp10,000,000. If the owner fails or is negligent in fulfilling this wreck removal obligation within the time limit, the government is obliged to lift, remove, or destroy all or part of a ship’s hull and/or its cargo at the owner’s expense. Shipowners are also required to insure their vessels with wreck removal insurance.

International conventions in force

Indonesia has not ratified the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels 1910. However, Indonesia has ratified the Convention on the International Regulations for Preventing Collisions at Sea 1972 (COLREG 1972) by enactment of Presidential Decision No. 50 of 1979.

Indonesia has ratified the Nairobi International Convention on the Removal of Wrecks 2007 (the Nairobi Convention), as seen in Presidential Regulation No. 80 of 2020 on the Ratification of the Nairobi International Convention on the Removal of Wrecks. Therefore, all provisions stated in the Nairobi Convention are in force and apply to vessels operating in Indonesian waters.

Indonesia has also ratified the International Convention on Civil Liability for Oil Pollution Damage 1969 (CLC 1969) and enacted Presidential Decision No. 18 of 1978. In In addition, Presidential Decision No. 52 of 1999 was enacted to ratify the 1992 Protocol and to amend the convention.

Indonesia has not ratified any international conventions concerning salvage.

Salvage

There is no mandatory local form of salvage agreement in Indonesia, and Lloyd’s standard form of salvage agreement is not prohibited. However, the Minister of Transportation Regulation (MoTR) concerning Salvage and/or Underwater Works, as last amended by MoTR No. PM 27 of 2022, states that salvage must be carried out within 180 days of the ship sinking or running aground.

Under article 3 of that regulation, a salvage operation is to be carried out by a business entity specifically established to conduct salvage operations, underwater works, or both.

For advice on wreck removal, salvage, and pollution liability in Indonesia, contact Anggraeni and Partners at connect@ap-lawsolution.net.