The 3,650-dwt Caraka Jaya Niaga III-16 (built 1993) took on water and partially sank with a cargo of 3,500 tons of cement off Kalipuro, East Java.
Local media said it was still unclear whether the wreck would be removed in one section or cut into pieces.
The cargo must be removed first, however.
The vessel was operated by ISA Lines of Indonesia.
