The Minister Of Transportation Publish The Second Amendment On The Salvage Regulations And / Or Underwater Works

Minister of Transportation issued the second amendment to the legislation which governs underwater works through Regulation of the Minister of Transportation of the Republic of Indonesia Number 38 Year 2018 on the Second Amendment of Regulation of the Minister of Transportation Number 71 Year 2013 Concerning Salvage And / Or Underwater Works (“Permenhub 38/2018”). The purpose of this issuance is to streamline provisions relating to the procedure of removal of the ship’s frame and / or its load.

 

This Legal Headlines discusses salvage or works to assist the ship and / or its cargo in an accident or danger in waters, which are divided into: (i) Scope of Salvage Activities; (ii) Salvage Activities Permit; (iii) Implementation of Salvage Activities; (iv) Discovery and Mastery of the Framework of the Ship; (v) Transfer of Removal of Ship’s Frame.

 

Scope of Salvage Activities

One of the form of salvage activity is lifting and removing underwater obstacles or other objects. This Permenhub 38/2018 (“Permenhub”) has changed the scope of underwater obstacles or other objects which previously only covered the valuables contained in the sinking ship, to include other objects derived from other than the shipping activities.

 

Implementation of Salvage Activities by Salvage Companies

In order to conduct salvage activities, besides the requirement to obtain salvage activities permit from the Director General of Sea Transport (“Director General”), a business license from the Head of Investment Coordinating Board (“BKPM”) is also required in Permenhub 38/2018.

 

Implementation of Salvage Activities by Ship Owners

In the implementation of salvage activities, a power of attorney or letter of appointment is only necessary in the event that the application of the salvage permit activities is not submitted by the vessel owners directly. Moreover, there are additional provision related to the implementation of salvage activities, as follows:

1. Obligations for shipowners to coordinate with the nearest Technical Implementation Unit (“UPT”) on conducting supervision of the ship’s frame and / or unloaded loads;
2. Obligations for the ship’s frame owner and / or its cargo to be responsible for any damage or loss to the ship’s frame and / or its contents;
3. Obligations for the ship’s frame owner and / or its cargo owners to be responsible for any costs arising from the supervision of the ship’s frame and / or cargo.

 

Discovery and Mastery of the Ship’s Frame

In the event of the discovery of the ship’s frame and/or its cargo based on reports from the public and the owner is unknown, in this Permenhub requires the Director General to make announcements on the discovery of the ship’s frame and/or cargo and remove the vessel and/or cargo if there is no party which claim it.

 

Delegation of Removal of Ship’s Frame

The removal of the ship’s frame and/or cargo carried by the salvage company may be made after obtaining a delegation from the Director General. In addition, there are additional requirements to obtain the delegation from the Director General by fulfilling:

1. Administrative requirements in the form of minutes of the results of coordination meeting which is conducted with the relevant ministries or agencies; and
2. Technical requirements in the form of proposed locations by completing the geographic coordinate points depicted in the sea map.

 

Furthermore, regarding to the removal of the ship’s frame and/or cargo carried out using the state budget, the result of the exclusion shall belong to the state property and shall be auctioned.

 

16 July 2018 006/AP-LH/VII/2018 -VCI-