SSEK Law Firm partner Stephen Igor Warokka and associate Mutiara Kasih Ramadhani provide the latest information for Indonesia on port state control, marine casualties and owners’ liability, cargo claims, maritime liens and ship arrests, passenger claims, ship-owners’ income tax relief, and the implications of environmental regulations, trade sanctions and international conflict, in the Chambers and Partners 2024 global practice guide to shipping law.
In Indonesia, the operation or use of a vessel requires registration and licensing. The owner of a vessel can register the vessel in Indonesia with a Vessel Title Transfer and Registrar Official (Pejabat Pendaftar dan Pencatat Balik Nama Kapal) appointed by the MOT. For a vessel to be registered, it must have a minimum of seven gross tonnage (GT) and be owned by an Indonesian citizen or an Indonesian legal entity that is majority Indonesian owned.
Article 7 of Minister of Transportation Regulation No. PM 39 of 2017 regarding the Registration and Nationality of Vessels (MOT Reg 39/2017), provides that the following documents must be submitted for vessel registration:
- proof of title on the vessel;
- identity of the vessel owner;
- taxpayer registration number (Nomor Pokok Wajib Pajak);
- tonnage certificate (Surat Ukur);
- proof of payment for the transfer of title (balik nama); and
- power of attorney (if an application is submitted by a proxy).
The vessel registration application is submitted online through the Electronic Vessel Registration System (Sistem Pendaftaran Kapal Elektronik – SPKE), and the Vessel Title Transfer and Registrar Official will examine the application within three working days to ensure the completeness of the documents. Minutes of the vessel registration will be issued if the requirements described above have been satisfied.
As stipulated by Article 11(1) of MOT Reg 39/2017, the vessel owner will then receive a grosse vessel registration deed.
Temporary Registration of Vessels
MOT Reg 39/2017 permits the temporary registration of vessels that are under construction in Indonesia or abroad. This temporary registration will be made in the form of a temporary registration certificate, which will only be issued when construction of the hull, main deck and the entire superstructure has been completed.
Article 160 of Law No. 17 of 2008 regarding Shipping, as amended by Law No. 6 of 2023 regarding the Stipulation of Government Regulation in Lieu of Law No 2 of 2022 regarding Job Creation into a Law (the Shipping Law), prohibits the dual registration of vessels.
Excerpted from the Shipping 2024 Chambers Global Practice Guide, published by Chambers and Partners.
Find Shipping 2024: Indonesia here.
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