Indonesia: Insurance company to pay for coral reef damage in Raja Ampat

Haeril Halim The Jakarta Post 27 Jun 17;

The government says it has agreed to a proposal by MV Caledonian Sky, which is owned by a Swedish company, for financial compensation from an insurance company for extensive damage the ship had done to coral reefs in Raja Ampat, Papua.

The government was initially cautious about the proposal, saying an insurance company would always try to pay as little as possible in compensation.

Environmentalists and academics estimate that Indonesia might suffer losses of US$18.6 million from damage to the coral reefs caused by the cruise ship in March. The damaged area totals 13,532 square meters.

Coordinating Maritime Affairs Minister Luhut Pandjaitan, whose office is in charge of the case, said the government had agreed to the company’s proposal to recompense for the coral damage through insurance.

“We are now negotiating with the insurance company,” Luhut recently told The Jakarta Post at the Presidential Palace.

Luhut, however, did not provide any figures detailing the payment the insurance company was expected to make for the environmental losses. He expressed hopes that the negotiation would soon secure agreement on the payment.

In March, Environment and Forestry Minister Siti Nurbaya had threatened to bring the case to the International Tribunal for the Law of the Sea, saying her office had been collecting necessary documents to support the planned lawsuit. (ary)