Joe Brock

SINGAPORE (Reuters), Several shipowners made payment of $300,000.00 each for the release of vessels being held hostage by Indonesian Navy. The navy claimed that they had illegally anchored the ships in Indonesian waters around Singapore.

These sources included shipowners, crew, and maritime security source who were all implicated in detentions. They claim that payments and cash transfers to naval officers and bank transfers to intermediaries, who claimed they represent the Indonesian Navy, led to their arrests.

Reuters couldn’t confirm the payment to naval officers nor identify who was the recipient.

Lloyd’s List Intelligence was the first to report on these payments and detentions.

In a response to Reuters questions, Rear Admiral Arsyad Abullah, Indonesia’s naval fleet commander, stated that the navy received no payment and that the company did not use intermediaries to resolve legal issues.

Abdullah claimed that “it is false that the Indonesian navy requested or received payment for the release of the ships.”

In the last three months, there have been increasing numbers of boats being detained for anchoring in Indonesian waters without permission or for departing from their sailing routes. Abdullah stated that all detentions occurred in compliance with Indonesian law.

One of the most busy waterways around the globe, the Singapore Strait is jammed with ships waiting to dock at Singapore. This regional shipping hub has been hit hard by the COVID-19 pandemic, which caused long delays.

(Graphic: Singapore’s waterways are among the busiest in the world – https://fingfx.thomsonreuters.com/gfx/ce/mypmnkaewvr/SingaporeWaterways.png)

Two maritime analysts and two shipowners stated that ships have been anchoring in the waters east of Strait for many years, thinking they were in international waters. This allows them to wait for port and is a way to avoid paying port fees.

This area falls within the territorial waters of Indonesia and its navy has stated that they will be pursuing vessels who anchor in this region without any licence.

The spokesperson of the Maritime and Port Authority of Singapore (a government agency) declined to comment.

DETENTION CRAMPED

In the three-months since the Indonesian navy detained around 30 ships including bulk carriers, pipeline layers and tankers. Most of these vessels were released by making $250,000 to $300,000. Two shipowners and two maritime security officials involved said that the vast majority had been freed after they made payments between $250,000 to $300,000.

These payments are cheaper than possibly losing out on revenues from ships carrying valuable cargo such as oil or grain if they’re held up for several months while an Indonesian court case is heard, according to two shipowners.

Two members of crew on detained ships claimed that armed navy sailors approached the vessels in warships, boarded the ships, and then took them to the naval bases at Batam or Bintan. These are the Indonesian islands south-east of Singapore.

Crew members and ship captains were often held for up to weeks in cramped rooms until cash was delivered by shipowners or transferred to an intermediary of navy. Two detained crew members claimed.

Abdullah the Indonesian navy officer stated that no ship crew members had been detained.

All crew members of the vessels were present onboard their ships during the legal procedure, with the exception of questioning at the naval station. He said that after the questioning they were returned to their ships.

(Graphic: Path of vessels that were detained near Singapore and then released by Indonesian authorities – https://fingfx.thomsonreuters.com/gfx/ce/dwvkrezolpm/VesselPathfromIndonesia.png)

Stephen Askins is a maritime lawyer based in London who advised ship owners whose boats were detained by Indonesian authorities. He said that while the navy has the right to defend its waters, but that if it was stopped, there should be some type of criminal prosecution.

Askins said in an email to Reuters that the Indonesian navy appears to be holding vessels for extortion money. “It is hard to imagine how such a detention could possibly be legal.” Askins declined to provide details on his clients.

A spokesperson for the Indonesian navy, Marine Lieutenant Colonel La Ode Muhamad Holib told Reuters that several vessels taken into custody in recent months have been released with no charges due to insufficient evidence.

Holib declined to comment on specific cases and said that five captains were currently being tried. Two others received short sentences in prison and fines of 100m rupiah ($7,000), and 25m rupiah respectively.

($1 = 14,240 rupiah)