JAKARTA: The Attorney General’s Office (AGO) aims to fast-track the auction of an Iranian tanker and its cargo of crude oil, which have been held in Riau Islands province since they were seized in Indonesian waters in 2023.
“We have instructed officials to speed up the disposal of seized state assets in the Riau Islands and to promptly report any obstacles in the asset recovery process,” said Kuntadi, who heads the Asset Recovery Agency (BPA) under the AGO.
Kuntadi made his statement during a visit to inspect the vessel, currently anchored off Batu Ampar district in Batam, where it is in the custody of the Maritime Security Agency (Bakamla).
Priandi Firdaus, head of intelligence at the Batam Prosecutor’s Office, said the AGO had held two auctions for the tanker and its cargo of 1.2 million barrels of light crude oil, which have a combined value of Rp 1.1 trillion (US$64 million), but both failed to secure a buyer.
During the last auction in January, three local oil and gas companies were disqualified for not meeting the licensing requirements.
“I cannot say when the third auction will begin,” Priandi said on Wednesday (April 15). “I have not received further information on if it will be reauctioned or what direction the AGO will take.”
He said the very large crude carrier (VLCC) was still in good condition despite three years of inactivity, adding that the Batam Prosecutor’s Office was coordinating closely with Bakamla to safeguard the vessel throughout the legal process.
Bakamla seized the Iranian-flagged MT Arman 114 in the North Natuna Sea on July 11, 2023, when it was spotted attempting to transfer its cargo of light crude oil to the Cameroon-flagged MT S Tinos, another VLCC.
The two tankers, which did not have the proper permit to conduct a ship-to-ship transfer, then allegedly tried to evade Indonesian authorities, prompting Bakamla boats to engage in pursuit of the noncompliant Iranian tanker into Malaysian waters, where local authorities provided assistance.
Arman 114 was also suspected of multiple violations, including the manipulation of data from its automatic identification system (AIS), a type of location transmitter, and the illegal discharge of hazardous and toxic materials (B3 waste) into the sea.
‘Bargaining chip’
Zamzami A. Karim, an associate professor at the Raja Haji College of Social and Political Sciences in Tanjungpinang, told The Jakarta Post in a recent interview that the prolonged deadlock over the tanker’s auction should be viewed as a diplomatic opportunity for President Prabowo Subianto amid the Iran war. “Arman 114 can be a bargaining chip,” he suggested.
He said the urgency for diplomatic engagement had increased following the US-Iranian ceasefire, with the Indonesian side yet to secure passage for all of its oil tankers through the Strait of Hormuz.
The Iranian government effectively closed the key shipping route in response to the joint United States-Israeli attacks on Feb 28 that started the war, heavily disrupting global oil supplies. State-owned energy company Pertamina is currently working to secure the release of its two remaining tankers, Pertamina Pride and Gamsunoro, which are currently stuck in the Persian Gulf.
It had previously secured the release of two other vessels. Pertamina Pride is a VLCC with a deadweight tonnage (DWT) of more than 300,000 tonnes, capable of carrying around 2 million barrels of crude oil. Gamsunoro is a 100,000 DWT Aframax tanker.
State Secretary Prasetyo Hadi said earlier this month that negotiations were ongoing to free the vessels, which were carrying an estimated 1.8 million barrels of oil, enough to meet up to two days of national consumption.
He stressed that the delayed shipment posed no threat to domestic fuel supplies, however, as the government was seeking alternative sources.
Zamzami said returning Arman 114 to Iran or negotiating the shared use of its crude with Tehran could help pave the way for the Indonesian tankers’ release through the Strait of Hormuz.
“The Foreign Ministry should have signaled to the President that MT Arman could be a way out of Indonesia’s energy disruption," he said.
“[That] vessel should not be left idle in Batu Ampar while the country struggles with its fuel supply.” - The Jakarta Post/ANN
