Joe Brock

SINGAPORE, (Reuters) – Two people who were involved in the negotiations for an unofficial payment claimed that Indonesian naval officers asked for $375,000 in order to free a fuel tanker held last week in Indonesian waters offshore Singapore. The vessel was illegally anchored in Indonesian waters.

The detention follows a number of other similar ones reported by Reuters last year. These cases saw the owners of the ships make unofficial payments totaling $300,000. The vessels that were detained east of Singapore by the Indonesian navy were also released.

According to two security sources, the Nord Joy tanker, a fuel tanker, was boarded on May 30, by an armed Navy personnel, while anchored in Indonesian waters east of Singapore Strait. This is one of the busiest shipping routes around the globe.

Julius Widjojono, an Indonesian Navy spokesperson, was asked to clarify whether or not naval officers requested $375,000 in order to release Nord Joy. He declined to respond to any further inquiries.

The Nord Joy was suspected of being illegally anchored in Indonesian waters, violating sea passage rights, and sailing under a false flag.

He stated that “the initial information was that the case is still under investigation at Batam Naval Base.”

Widjojono stated that anchoring without permission in Indonesian law carries a maximum sentence of one year imprisonment for the captain and 200 million rupees ($13,840), fine.

In November, the Indonesian Navy stated that the number of people detained for anchoring illegally or deviating off the sailing route were on the rise.

According to the navy, vessels were either freed due to lack of evidence or cases were handled through the Indonesian courts. The Navy stated that no payment was made to it or its staff.

(Graphic: Map of oil and product tankers sailing or anchored near Singapore: https://fingfx.thomsonreuters.com/gfx/ce/gdvzyelnxpw/NordJoyTrack.png)

BATAM NAVAL BASE

Nord Joy is Panama-flagged, measuring 183m (200 yards), and can transport up to 350,000 barrels.

Reuters could not determine the ownership of the vessel.

Synergy Group (based in Singapore) that oversees Nord Joy did not answer questions regarding the unofficial request of navy personnel for a payment.

Synergy stated to Reuters that Nord Joy anchored at a location thought to be free from Indonesian territorial waters. On May 26, the Indonesian navy boarded Nord Joy, claiming it was in its territory.

Synergy stated that it is working with local lawyers, the Navy and other agents to solve the problem.

Two sources said that the Nord Joy was escorted to an anchorage close to Batam by navy vessels. This is an island located 20 miles (30 km) south-east of Singapore, which houses a naval base.

According to sources, naval officers ordered the master of the ship’s tanker to be brought onto base. They also advised him that he would need $375,000 in order for the court case to proceed. If the matter went to trial, he could lose months of his income.

It is not easy to charter a high-quality product tanker like the Nord Joy, which travels from Singapore to China. The cost of chartering a refined product tanker the size of Nord Joy from Singapore to China reached $1.12 million per hour on May 9. It was $820,000 at June 8 according to Simpson Spence Young.

For years, ships have anchored in the waters east of Singapore Strait, waiting to dock. They believe they are within international waters, and thus not responsible for port fees.

In recent years, the Indonesian Navy has made public statements that the majority of this area lies within its territorial waters. It also stated that it would crack down on any vessels that are anchored in these areas without a license.

(Graphic: Daily charter rate for a fuel tanker from Singapore to China: https://fingfx.thomsonreuters.com/gfx/ce/dwvkrnbkjpm/)DailyCleanTankerRatesJune2022.png

($1 = 14,454.0000 rupiah)