Indonesia: The consequences of unauthorised anchoring

Indonesian Navy patrols territorial waters (photo credit: West of England P and I Club)

12 October 2022

While there are few coastal states that tolerate unauthorised anchoring, Indonesia increased the enforcement activities directed at vessels that anchor without authorisation. However, apart from the official fines and detention rules, there is the risk of cash payments demands from rogue navy personnel that go beyond the officially gazetted fines.

By Thomas Timlen, South-east Asia analyst

Since the commencement of the Indonesian Navy's focused campaign in 2019, many vessels have been fined and detained off Bintan Island and along the Riau Archipelago due to anchoring or drifting in Indonesian territorial waters without first obtaining authorisation from local authorities. In late-2021 and early-2022 several Protection and Indemnity insurance companies (P and I Clubs) issued updated advisories to their members regarding an increase of continued vessel detentions, urging their members anchoring within Indonesian waters to fully comply with the local regulations.

Globally there are few coastal states that will tolerate unauthorised anchoring. In Southeast Asia, Indonesia, like Malaysia, has stepped up enforcement activities directed at vessels that anchor without authorisation, as well as vessels that deviate from sailing routes and those that conduct ship-to-ship operations without authorisation or in prohibited areas for such activities.

While official fines and detention rules apply for such infractions, ongoing reports indicate that rogue Indonesian navy personnel have demanded cash payments of significant amounts in order to secure the release of vessels in breach of these rules. In some cases, ship officers have been taken ashore and held in detention centers until the fines have been paid. In order to reduce the risk of such consequences, it is advisable to ensure that proper authorisation has been secured via Indonesian port agents before anchoring and before ship-to-ship operations at sea commence.

Further complicating the situation in Indonesian waters is a requirement that came into force in August 2019. Although SOLAS Automatic Identification System (AIS) requirements were already well established by this time, the Indonesian regulation makes it mandatory for all vessels sailing in Indonesian waters to install and activate AIS, but unlike the SOLAS regulations, in Indonesia the AIS must be kept on at all times. In addition, the master of the vessel is obliged to ensure that the AIS provides the correct information. If the AIS unit is not functioning, the master is required to notify the relevant Indonesian authority, such as the Coast Radio Station, the Vessel Traffic Services or the Harbour Master and record the incident appropriately in the vessel’s log book.

This regulation is important to bear in mind as vessels that anchor without authorisation and have switched off their AIS face multiple penalties for each regulation breached, increasing the fines and other consequences. 

Furthermore, the demands for cash payments that go beyond the officially gazetted fines pose a particular challenge in view of the proliferation of anti-bribery laws that prevent companies from acquiescing to such demands under penalty of law in their own respective countries. 

Risk Intelligence clients can monitor the latest developments relating to the consequences of anchoring without authorisation in every Area, Country and Port Threat Assessment that is linked to the territorial waters of Indonesia, as well as in other areas in which special attention is recommended.

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