Purpose: As ocean transportation instrument, the ocean vessel has an important role in improving the growth of economic rate, particularly naval economic business. The high cost of ocean vessel make businessmen difficult to acquire business capital, so they propose the application of credit and ocean vessel is made into mortgage. Although Indonesia is party in International Convention on Maritime Liens and Mortgages 1993, there is not any specific regulation arranging the execution of ocean vessel registered in Indonesia up to now. International Civil Law considers efforts to settle the issues must be started up by contract and agreement in advance. Based on the description, it is necessary to analyse to which extent International Civil Law might settle issues on the execution of ocean vessel and to which extent a court must pay attention and recognize foreign legal verdicts or rights emerged based on Foreign Court Verdicts or laws.

Methodology: This study uses a normative juridical approach, the study of which refers to legal norms contained in the legislation, court decisions and legal norms that exist in society. The research specifications used are descriptive analytics. The sources of legal materials used are primary and secondary data and data collection techniques carried out by means of library research, interviews and observations. Meanwhile, the data analysis technique in this paper uses qualitative analysis.

Main Findings:  An international agreement or agreement must contain a legal choice that will be used later because it will be a very complex problem if it is not determined from the beginning of the law which will be used if a dispute occurs. Ships that can be secured by mortgages are registered ships and ships weighing more than 20m3. In carrying out ship executions even though Indonesia has ratified the 1993 International Convention on Liens and Mortgage, the provisions for the execution of ships in Indonesia still refer to the provisions contained in Article 224 HIR or RIB and Article 258 Rbg.

Implications/Applications: This study will be helpful for practitioners and law-making authorities in formulating different policies and amendments in existing international law on the implementation of the sea ship execution related to bad credit.


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