Ensuring Ship Seaworthiness: Navigating the Fulfilment and Supervision of the Certificate of Insurance or Other Financial Security in Respect of Liability for the Removal of Wrecks
The Indonesian maritime regulatory authority, The Directorate General of Sea Transportation (“DGST”), has issued Circular Letter Number SE-DJPL 3 of 2023 concerning Fulfilment and Supervision of the Certificate of Insurance or Other Financial Security in Respect of Liability for the Removal of Wrecks as a Requirement and Obligation of Ship Seaworthiness (“CL 3/2023”). CL 3/2023 mandates the shipowner’s obligation to insure ships with wreck removal insurance for certain Indonesia flagged vessels. This was first introduced in Regulation of The Minister of Transportation Number PM 27 of 2022 concerning The Third Amendment to Regulation of The Minister of Transportation Number PM 71 of 2013 concerning Salvage and/or Underwater Works (“MoT 27/2022”). CL 3/2023 features important changes concerning the certificate which replaces the Letter of Attestation for Compliance of Insurance or Other Financial Security in Respect of the Nairobi International Convention on the Removal of Wrecks, 2007, issued by the Directorate of Shipping and Maritime Affairs and concerning the certificate issuance mechanism (“Letter of Attestation”).
The certificate(s) will replace the Letter of Attestation.
This mandate has been introduced in the interest of affirming and ensuring ship seaworthiness. It also provides more details on the role DGST in issuing certificates of insurance or other financial security in respect to liability for the removal of wrecks.
Ships without the stipulated certificates may face operational restrictions potentially impacting trade and shipping activities. According to CL 3/2023, the harbormaster is authorized to delay the departure of ships for failure to obtain certificates.
In addition to any potential compensation costs from removal of wreck incidents, ship operators might need to consider additional financial provisions to obtain and maintain these certificates.
Non-compliance may lead to Port Clearance refusal or Port Clearance revocation.
If you own and/or operate an Indonesian-flagged ship, we recommend procuring the required certificates at the earliest to ensure uninterrupted operations.
Consider consulting with maritime legal experts to understand the nuances of the new requirements and the broader implications for your operations.
It might be beneficial to engage directly with the maritime regulatory authority or relevant bodies to seek clarifications, if any.
This is a significant development for all stakeholders involved in the Indonesian maritime sector. We advise all our clients with operations or interests in the region to take cognizance of this change and act accordingly to ensure compliance and smooth operations.
 Setyawati Fitrianggraeni holds the position of Managing Partner at Anggraeni and Partners in Indonesia. She also serves as an Assistant Professor at the Faculty of Law, University of Indonesia, and is currently pursuing a PhD at the World Maritime University in Malmo, Sweden. This article is co-authored by Nazaruddin Insyiroh, Trainee Associate at Anggraeni and Partners.
 Number 5(a) CL 3/2023.
 Ibid, Number 5(e).
 Ibid, Number 5(f).
 Ibid, Number 5(b).
 Article 18B(1) MoT 27/2022.
 Article 18B(3) Mot 27/2022.
 Number 5(d) CL 3/2023
 Number 5(b) CL 3/2023
 Article 134 and Article 242 of Law Number 17 of 2008 concerning Shipping.
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