Strengthening ship mortgage governance for sustainable people’s shipping and blue economy
Keywords:
Blue economy, Debtor protection, Ship mortgage, Sustainable maritime financingAbstract
This study analyses the weaknesses of debtor protection in ship mortgage credit agreements within Indonesia’s people’s shipping sector and proposes a justice-based reconstruction aligned with sustainable blue economy principles. People’s shipping, which relies heavily on small- and medium-sized vessel owners, requires fair and predictable financing mechanisms to support maritime livelihoods. However, inconsistencies across the Civil Code, the Commercial Code, and the Shipping Law create legal uncertainty and weaken debtor protection, especially in mortgage execution procedures affecting small-scale shipowners. Using a constructivist paradigm and a juridical-sociological method, this study examines statutory regulations alongside banking practices, auction mechanisms, and ship mortgage enforcement. The findings reveal weaknesses in legal substance, structure, and culture, including unclear execution norms, administrative delays, challenges with vessel mobility, and high enforcement costs that disproportionately burden people’s shipping actors. These regulatory gaps hinder equitable access to credit and disrupt the economic continuity of small maritime communities, thereby limiting the contribution of people’s shipping to a sustainable blue economy. The study recommends reconstructing key legal provisions to strengthen proportional rights and obligations, improve legal certainty, and support responsible ship financing that empowers coastal communities and promotes the long-term sustainability of Indonesia’s maritime economy.
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