Mokovic confirmed that "Losinjska plovidba" was ready to pay the amount immediately after the negotiations, the condition being that the ship be given a permit to leave Indonesia together with its 25-member crew.
The USD1 million dollar guarantee, requested by Indonesian officials, would cover possible fines.
Earlier today, a spokesman for the Indonesian Foreign Ministry said Indonesia would release the Mirna ship seized for allegedly carrying illegal cargo, if it paid a USD1 million guarantee to the government.
The Mirna ship is owned by the "Losinjska plovidba" shipping company from Rijeka which has been involved in a lengthy legal battle with Indonesian officials since August 2004 when the logging vessel was accused of using improper legal documents.