Interim Relief under Cape Town Convention

Aiming to improve legal certainty in the aircraft business, Indonesia ratified The Convention on International Interests in Mobile Equipment (“Cape Town Convention”) and Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (“Protocol”) on 20 February 2007. As the result, upon the debtor’s default, Law No. 1 of 2009 on Aviation (“Aviation Law”) entitles the creditor (lessor or chargor) to a court order for a repossession of its aircraft within 10 calendar days, without first submitting a lawsuit on the merits of the case.

However, several legal issues are left unresolved by the Aviation Law which affects its enforceability in practice. Please click the download icon below to read the complete advisory co-authored by Lia AliziaYusfa Perdana, and Golden Mandala.

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