Bank Indonesia has confirmed that the automatic exemption from the mandatory use of Rupiah for vessel charter transactions will expire on 30 June 2026 and will not be further extended. Instead, a one-year transition period until 30 June 2027 has been introduced for eligible shipping companies previously covered by the exemption, during which they may continue relying on the existing approval while preparing for compliance. Companies seeking to continue using foreign currency beyond the transition period must submit a new application supported by comprehensive documentation, signalling a shift toward a more selective, case-by-case exemption regime. This development requires shipping companies to reassess their contractual arrangements, evaluate the need for a renewed exemption, and prepare for the eventual implementation of Indonesia’s mandatory Rupiah requirements.

Cargo claims frequently turn on the allocation of risk between carriers, shipowners, shippers, and cargo interests under both statutory and contractual frameworks. This update explores the Indonesian legal regime governing cargo claims, covering key issues such as title to sue, carriers’ liability, limitation of liability, time bars, and practical measures for mitigating exposure in maritime cargo disputes.