Object originating from cargo of sunken ship
Attachment VI of Government Regulation No. 32 Year 2019 on the Maritime Spatial Plan (Rencana Tata Ruang Laut) has listed more that 1000 (one thousand) locations of the Objects Originating from Cargo of Sunken Ship in Indonesia waters.
Previously, Presidential Decree No. 25/1992 regulates on Profit Sharing Resulting between the Indonesian Government and Companies of Valuable Objects Retrieved from Sunken Ships. This Decree was revoked by Presidential Regulation No. 8 Year 2023, dated 19 January 2023 on the Management of the Objects Originating from Cargo of Sunken Ship which among others regulates that:
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Previously, Presidential Decree No. 25/1992 regulates on Profit Sharing Resulting between the Indonesian Government and Companies of Valuable Objects Retrieved from Sunken Ships. This Decree was revoked by Presidential Regulation No. 8 Year 2023, dated 19 January 2023 on the Management of the Objects Originating from Cargo of Sunken Ship which among others regulates that:
- The objects originating from the cargo of sunken ship are the underwater objects having historical, scientific, cultural, and/or economical values (Barang Muatan Kapal Tenggelam or “BMKT”/”the Underwater Objects”).
- A company with an appropriate business license can engage to provide the service of excavation of BMKT/the Underwater Objects. This business activity seems to fall under KBLI 74909 Professional, Scientific and Technical Activities, under the Ministry of Maritime and Fishery Affairs.
The activity of excavation of the Underwater Object must be within the limit of Indonesia’s waters (territorial seas extending 12 nautical miles) or contiguous zone (of 24 nautical miles beyond its baselines). - BMKT/the Underwater Objects can be either Cultural Heritage objects (Cagar Budaya) or non- cultural heritage objects. Law No. 11/2010 on Cultural Heritage Law and its implementing regulation (Government Regulation No.1 Year 2022 on National Registration and Cultural Heritage Conservation) require that objects originating from the cargo of sunken ship to be reported to the Ministry of Education’s regional office which jurisdiction covering the relevant Underwater Object’s location within 30 days of its recovery. The Ministry of Education shall examine such reported Underwater Objects and determine/confirm whether or not they are indeed a cultural heritage namely that they meet the 4 criteria of: (i) having age of at least 50 years old, (ii) representing certain style period of at least 50 years old, (iii) having specific meaning for history, science, education, religion and/or culture; and (iv) having cultural values for national identity’s empowerment.
If the relevant Underwater Objects constitutes Cultural Heritage, which is very rare and unique, they shall be claimed to be owned by the Government. - The Underwater Objects can be utilized either (i) on-site for conservation and/or tourism; or (ii) off-site through the State’s auction after their value being assessed by the Government’s appraisal.
- The net outcome from the auction proceed after deduction from the auction’s costs can be shared between the Government and the company based on 45 : 55 ratio. If Underwater Objects are not sold through 3 times auctions, the possession of the Underwater Objects are split 45 : 55 between the Government and the relevant company.
Disclaimer : This info is intended for general information only; it does not constitute a legal advice. We accept no responsibility for any loss that may arise from reliance on this information. Please contact us if you need full legal advice.