Establishment of Sea Transport Company in Indonesia…
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Establishment of Sea Transport Company in Indonesia complicated or convenient?

Indonesia as the world's largest archipelago, where the 2/3 (two-thirds) is a sea of Indonesia's territory. As a country that dominated the oceans, it is fitting to the economy not just resting on land sector. It has thousands of Islands, marine transportation became one of the alternative community Indonesia to reach the Islands. It also makes the business opportunity in the industry ships became an option for some circles. Based on the brief description above, arises a question;

How do I set up a company of marine transportation according to the regulations prevailing in Indonesia?

Basically, establishment of sea transport company same with the establishment of the company in general. It is just, in establishment of sea transport company must get business permit from Ministry of Transportation which called Sea Transport Company Business License (SIUPAL) or Special Sea Transportation License (SIOPSUS). it is arranged in Chapter 1 Regulation of the Minister of Transportation Number PM 93 Year 2013 about Implementation and Cultivation  Sea Transport (“Pemenhub PM 93/2013”), what is meant by sea transportation is a transport activity which according to its activities serves sea transport activities.

In General that is to be prepared to be able to set up a national sea transport company is, first, set up a company which established under the laws of Indonesia, in this case in the form of a limited liability company (PT) with the supporting documents required.

Two, for Sea Transport Company Business License (SIUPAL) whose capital is partly owned by a foreign (PMA or Joint Venture), then must have a minimum capital of the company amounted to Rp50.000.000.000 (fifty billion) and paid-up capital of Rp12.500.000.000 (twelve billion, five hundred million), while Special Sea Transportation License (SIOPSUS) given to the organizer or sea transport company whose business activities are specialized to serve its own interests in supporting its main business, is covering the industrial field, forestry, tourism, mining, fishery, salvage dan underground work (PBA), dredging, construction service and research activities, education, training and implementation of others social activities.

Third, owning Indonesian-flagged ship, namely ships registered in the list of Indonesian ships and obtaining ship and aircraft registration certificates issued by the Director General of Sea Transportation of the Ministry of Transportation. In this case the ship could either be flagged boat that Indonesia be eligible with most small size GT 175 (one hundred seventy-five Gross Tonnage); Indonesia-flagged tugboat that sea be eligible with most small driving motor power TK 150 (one hundred and fifty Horsepower) and most small-sized barge GT 175 (one hundred seventy-five Gross Tonnage); Indonesia-flagged tugboat that sea be eligible with most small size GT 175 (one hundred seventy-five Gross Tonnage); Motorized barges that Indonesia be eligible-flagged sea with most small size GT 175 (one hundred seventy-five Gross Tonnage); and specifically for joint venture (JV) PMA,be flagged ship Indonesia with most small size GT 5,000 (five thousand Gross Tonnage).

For ships that have not been flag of Indonesia, are required to first replace the flag became the flag of Indonesia, it is set in the regulation of the Minister of transportation KM Number 26, year 2006, regarding the simplification of Procurement Procedures and Systems The ship and the use of the flag of the ship, or replacement in the rules are explained on a person/former foreign-flagged ship owners are obligated to replace and register their ships be flagged  Indonesia, must notify in-writing to the Director General of sea Transportation with attach supporting documents, such as proof of payment (bill of sale) that had been legalized by the Government authorities of the country of origin flag; the ship's handover news event(Protocol of Delivery); certificate removal (Deletion Certificate) published by the flag State of the ship's origin; a letter and a certificate of the ship published by the country of origin of the flag of the ship; General design and drawing of ship building (General Arrangement/GA).

Flag’s ship replacement will be held at Indonesia’s harbor where the ship is located, or on the request of the ship owner, flag’s ship replacement can be held at overseas harbor in terms of; ship will directly operate overseas; and flag country regulations of the ship's origin, require that ship has been sold to foreign citizens should be delete from the list of countries of the origin flag.

In addition, the ship's company also is required to have a certificate of safety and security of the ship, a certificate of a class from a recognized certification agency of the Government, in this case PT Indonesia Bureau of Classification (PT BKI) or classification of foreign entities which a member of the International Association of Classification Society (IACS) which has branch offices in Indonesia and Indonesian surveyors have a measure of international, and should also make a report plan the operation of the ship on a fixed route and regular sea transport to the Directorate General of the Ministry of transportation of the sea.

Explanation above is a general description to establishment sea transport company at Indonesia. To find out more about sea transportation company at Indonesia, you can contact us in the box shown on our website.