Prioritized Maritime Claims and Ship Mortgages (Hipotek) - Draft Bill

The Draft Bill on Prioritized Maritime Claims and Mortgages on Ships (bill) has been drafted with the express intent of providing greater legal certainty for both creditors and debitors. For an archipelagic nation such as Indonesia that relies heavily on commercial shipping the need for a separate regulatory framework to cover mortgages over ships and the prioritizing of maritime claims has been a long time in the making.

Previously the regulatory framework was a part of the Civil and Commercial Codes as well as a 1955 Ordinance on the registration of ships, among a number of other regulations. It is expected that the successful passage of this bill through the House of Representatives (DPR) will be a critical driving force in the ongoing development of the national economy. The Department of Transport which drafted the bill has forwarded it to the Department of Law and Human Rights where it is expected to undergo some revision. It is hoped that the bill will pass quickly.