A.M Oktarina’s Founding Partner Invited as a Panellist in The Mare Forum International

By : A. M Oktarina Counsellors at Law

Drafted by : Nasfiahtul Istani Daely, S.H

Reviewed by : Noverizky Tri Putra Pasaribu S.H LL.M (Adv)

Mare Forum International is global and influential forums for the maritime and shipping industry. Currently events are held in Europe, North, Central and South America, Asia and the Middle East.

The international forum of Mare Forum International have attracted the active participation of governmental officers, policy makers and executives of the industry, and have resulted in the creation of new policy, effective networks and fresh perspectives of the future.

Recently, Mr. Noverizky Tri Putra Pasaribu S.H., LL.M (Adv), as The Founding Partners of A.M Oktarina Counsellors at law being one of the Panelist at Mare Forum International. AMO as one of Indonesia’s law firms increasingly shows its quality in providing legal service related to activities held by Mare Forum International including but not limited to shipping dispute, shipping financial, shipping finance, shipping regulation, shipping investment.

In the sessions at Mare Forum International, Mr. Noverizky gave the statement about the big change topic, include:

1. Jakarta, Beijing, Washington, Singapore, Athens, London; Protectionism; globalization vs. regionalism and effects on trade and shipping;
2. Geopolitical considerations;
3. The world economy and trade forecast in the new multipolar world;
4. Exploring the new risks in a changing global environment;
5. The Technologic and Industrial revolution (ready for shipowner and regulator);
6. Regulations on the environment; exploring the right balance between market forces and administrative measures for 2020 sulfur cap;
7. The legal system /mortgage law in Indonesia;
8. Adapting the new technologies in your company certainly improve the commercial success of your company in the heavy global competition;
9. Apple ships entering heavily the shipping markets ready shipowner.

From the above, there are 4 topics that are the focused by Mr. Noverizky at the international forum mare, namely:

1. The world economy and trade forecast in the new multipolar world;
2. The Technologic and Industrial revolution for shipowner and regulator;
3. Regulations on the environment exploring the right balance between market forces and administrative measures for 2020 sulfur cap;
4. The legal system /mortgage law in Indonesia.

The discussion on the first point is related to The world economy and trade forecast in the new multipolar world, Mr. Noverizky will discuss about the world economy is in the midst of a transformative change. One of the most visible outcomes of this transformation is the rise of a number of dynamic emerging-market countries to the helm of the global economy. By 2025, emerging economies such as Brazil, China, India, Indonesia, and the Russian Federation will be major contributors to global growth, alongside the advanced economies. As the countries pursue growth opportunities abroad and encouraged by improved policies, corporations based in emerging markets are playing an increasingly prominent role in global business and crossborder investment. There are high costs involved in cross-border business due to different legal systems within a global or a regional area. These costs are, on the one hand, occurring through the collection of information about the respective national regulations, and, on the other hand, are due to the uncertainty of individual cross-border transactions that increase the number of legal provisions and processes that could be faced. More in detail different legal systems may imply additional costs for acquiring the information needed to write a particular contract in other 4 legal areas, there are higher costs for litigating issues under various contracts governed by different legal regimes, costs of instability due to the fact that several contracts are subject to subsequent changes in the law and diversity in judicial administration across the different countries.

The discussion on the second point is related to The Technologic and Industrial revolution for shipowner and regulator. Regulators need to consider the difficulties faced by shipowners in implementing new rules and legislative requirements about the technologic and Industrial revolution for shipping business. Some shipping companies may have one person in Information Technology to do everything such as communications, software, telephony, bridge systems, engine monitoring, automation and ecdis. The key challenges for shipowners include running their businesses at rock-bottom market levels without compromising safety, environmental and regulatory compliance standards.. For years some of shipping companies had a lack of bandwidth and speed of communications. Now this is being dealt with, but the shipping industry is not ready to take advantage of the extra bandwidth, and it is not yet available at attractive prices. The shipowner need to find ways to use the information that is available from engine and bridge systems to take advantage of the data for vessel monitoring, to make shipping companies more efficient, more profitable and safer, that’s why it should hear by policy-makers, regulator and industry stakeholders.

The discussion on the third points related to Regulations on the environment exploring the right balance between market forces and administrative measures for 2020 sulfur cap about regulation of the sulphur content of any fuel oil used on board ships must not exceed 0.50% m/m from 1 January 2020. Marking a sea change in fuel used by ships, globally, which will significantly reduce air pollution from ships with positive benefits for human health and the environment. The rising share of emissions from maritime shipping has led to policy design and diverse initiatives at many levels. By 2025, energy efficiency requirements under the energy-efficiency regulations, existing ships now have to have an energy efficiency management plan in place, looking at things like improved voyage planning, cleaning the underwater parts of the ship and the propeller more often, introducing technical measures such as waste heat recovery systems, or even fitting a new propeller.

The discussion on the fourth points related to The legal system /mortgage law in Indonesia. When we make a debt we usually asked to submit guarantees to guarantee that we will settle our debt payment obligations. Indonesia is familiar with various types of material guarantees, namely Pawn, Fiduciary, Mortgages, Mortgage Rights. Mortgage is a material right over immovable property, to take the replacement of the payment of an agreement. In the mortgage the object is a ship with the contents of 20 m3. In the case of debtor defaults, the creditor as the holder of the mortgages on the ship has the right to sell in public auction for the vessels that have been mortgaged. Proceeds from the sale of the vessel are used as a payment of debtor obligations to creditors. Economic and trade developments followed by developments in the need for credit and the provision of credit facilities require guarantees for the security of credit. Therefore the existence of mortgage rights as a guarantee institution is very supportive, especially with the entry of foreign investors into Indonesia and the opening of the possibility for foreigners / foreign legal entities to obtain use rights on State land and make it a guarantee to obtain capital / credit in Indonesia to support activities economy in Indonesia.