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Though this three year period was marked by a substantial uptick in the capacity of domestic vessels from This necessitated the creation of exemptions for a number of vessels that would allow for the continued use of foreign flagged ships past the mid deadline.

Government Regulation No. These deadlines differed depending upon the type of offshore activity involved. Extensions to cabotage exemptions would be granted in cases where domestic shipyards had yet to develop adequate vessel production capabilities, and would be removed from offshore vessels now ably manufactured by Indonesian companies.

For offshore vessels yet to have reached exemption deadlines laid out in the earlier MOT regulation, there is no change.

SURF laying barges used in offshore construction previously earmarked for cabotage laws starting from December , are to remain part of the exempted ships list until December Moreover, foreign flagged vessels used in dredging activities can up until December still be used insofar as they are larger than 5, m3.

Foreign flagged dredgers with a capacity smaller than this are now subject to cabotage principles. Offshore vessel types that are now readily supplied by members of the Indonesian National Shipowners Association INSA such as anchor handling tug supply AHTS ships are now subject to fully enforced cabotage principles and have been removed from the list of exempted ships. To legally operate a foreign flagged vessel categorised as one of the offshore vessels not yet subject to strict cabotage laws, a company must still obtain a permit from the Ministry of Transportation.

This permit is only granted to companies able to fulfil a number of requirements, including: Conducting a minimum of one attempt to procure an Indonesian flagged vessel, communicated in writing with INSA. INSA is obligated to reply to all communication within 5 working days if documents are received in full should there be no Indonesian flagged ship available.

Submitting a work plan complete with project schedule and designated work area marked with geographical coordinates.

Despite exemptions, foreign flagged offshore vessels must still be operated by a local shipping agent. Licences allowing the use of foreign vessels in Indonesian waters are valid for a maximum period of 6 months, but can be extended upon evaluation.

Interestingly, it should also be noted that foreign vessels not designated in the list of cabotage exempted ships can obtain special exemption from the Ministry of Transportation upon being evaluated by a special team. Should the evaluation process prove successful, foreign owned vessels will receive a permit to operate in Indonesian waters for a maximum of three months.

This policy has already had success in encouraging the development of the Indonesian shipbuilding industry — now able to manufacture 19 types of offshore vessels, up from only 9 in years past — without severely impinging upon the efficiency of shipping in and around the archipelago. Global Business Guide Indonesia - 23rd June


Coal buyers spooked by Indonesia's new shipping rules: Assoc

Asas ini telah diatur oleh Indonesia melalui Inpres no. Dalam Instruksi Presiden no. Di dalam pasal 8 Undang-undang Pelayaran disebutkan, kegiatan angkutan laut di dalam negeri dilaksanakan oleh perusahaan angkutan laut nasional, dengan menggunakan kapal berbendera Indonesia, serta diawaki oleh awak kapal berkewarganegaraan Indonesia. Dalam kasus ini, penerapan asas cabotage ini menimbulkan masalah pada industri migas. Undang-undang no. Sementara itu, Kapal yang beroperasi di sektor migas merupakan kapal-kapal khusus yang umumnya berbendera asing. Untuk mengatasi ini, kapal-kapal yang disewa oleh Pertamina tersebut melakukan reflagging, yaitu penggantian kapal dengan bendera Indonesia sehingga tetap dapat beroperasi di Indonesia.


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Need a Lawyer? It is located in the crossroad between the Asia and Australia continent and between the Pacific and Indian Ocean. Its territory is spread from Sabang in the west to Merauke in the east, which is called as bounded pearls in the eastern hemisphere. Indonesia is heavily dependent on maritime transport for international as well as for domestic trade especially because of her archipelagic nature. In this vein, maritime shipping provides essential links between different parts of the country.

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