Indonesia will auction the seized Iranian tanker MT Arman 114 and its 1.245 million barrels of crude oil starting December 2. The government will host the sale on its online auction platform, setting a reserve price of Rp 1.174 trillion ($70 million). This auction demonstrates Indonesia’s firm stance on maritime law and oil trade regulation.
The MT Arman 114, built in 1997 and flagged to Iran, remains under US sanctions. In October 2023, Indonesia’s Maritime Security Agency intercepted the vessel in the North Natuna Sea. Investigators discovered that the tanker conducted an illegal ship-to-ship oil transfer with the Cameroon-flagged MT S Tinos while both ships turned off their AIS tracking systems. Furthermore, drone footage captured a pipeline linking the vessels and a spill leaking into the sea.
After a district court ruling on July 10, 2024, the Egyptian captain, Mohammed Abdelaziz Mohamed Hatiba, received a seven-year prison sentence and a Rp 5 billion ($300,000) fine for illegal waste dumping. The court also transferred ownership of the tanker and its cargo to the state. Consequently, authorities cleared the path for the upcoming auction of the seized Iranian tanker.
The auction requires bidders to pay a security deposit of Rp 118 billion ($7 million). Only companies licensed to trade or process oil and gas, or those registered with the Energy and Mineral Resources Ministry, may participate. By Monday, 19 firms had already registered their interest. Analysts predict strong competition due to the vessel’s size and the volume of crude oil it carries.
Experts emphasize that Indonesia’s actions protect the marine environment and enforce lawful commerce. In addition, they highlight that the auction sets an important precedent for tackling illegal oil transfers in the region. A government official stressed that enforcing maritime law strengthens Indonesia’s credibility in international trade.
Looking forward, Indonesia plans to continue monitoring maritime activities and prevent future violations. Officials expect the sale of the seized Iranian tanker to conclude by the end of the year. Proceeds from the auction will bolster national resources and encourage compliance within the oil and gas sector.