Indonesia to Propose Formula for Oil Pollution Compensation

Jakarta (Antara Bali) - The Indonesian government will propose a formula of oil pollution compensation in the sea to the International Maritime Organization (IMO) when it holds a session  in London in April 2015.  

The formula has been produced through meetings of officials of related agencies, Sea Transport Director General Capt Bobby R Mamahit said in a news release  here on Friday.

The proposed formula will serve as a reference  in the event of dispute over oil pollution and regulates compensation to be paid by companies responsible for pollution from their off shore oil explorations and exploitations.

The meeting between officials of the foreign ministry, law and human rights ministry , the ministry of environment , energy and mineral resources ministry, fishery and maritime ministry  and other related agencies, headed by Robby and Indonesian Ambassador to Britain Teuku Mohammad Hamzah Thayeb discussed the formula of    bilateral/regional agreement on  Liability and Compensation Issues.

 The formula would be proposed at the session of the legal committee of IMO  in London.

Bobby said at the IMO session in 2010, it was already suggested the importance of Liability and Compensation Issues.

The Indonesian government raised again the issue  connected  with trans boundary pollution damage from offshore oil exploration and exploitation activities in the session of the Legal Committee  in London in April 2014.

Booby Mamahit said currently there are a number of IMO members agreed with the Indonesian initiative.

Indonesia proposed the formula based on its experience  with the pollution of the Timor Sea  from Montara oil refinery  five years earlier  with no sign of settlement of dispute between involved countries - Australia and Thailand.

The dispute has remained unsettled  because  there is no international law for reference that binds the countries.

"If the formula proposed by Indonesia is accepted internationally, all member countries could refer to the regulation in the event of dispute," he said. (WDY)