Recently, the Ministry of Transportation issued regulation no. PM 13 of 2017 regarding Ship Registration and Nationality (New Regulation). The New Regulation aims to increase investments in the Indonesian shipping sector. The New Regulation covers a wide scope, and therefore this column will focus on the ship registration of ownership procedures.
Ship registration can be divided into the following types of registration:
- Registration of ship ownership
- Hypothecation of ships
- Other rights in relation to ships, such as leasing or boat chartering
We will focus in this column on the registration of ship ownership. Companies must register the ship ownership to the Officials for the Registration and Recording of Ship Transfers of Title (Officials), who are appointed by the Directorate General of Sea Transportation. Companies can only register their ships after they have received an official ship measurement letter.
Only ships which fulfill the following requirements need to be registered:
- The internal volume of the vessel is minimum seven gross tonnage
- The ship is owned by:
- Indonesian citizens or by an 100% locally owned legal entity (PT)
- Joint venture companies where the majority of the shares is owned by Indonesian citizens or legal entities. This share ownership must be proven by a recommendation from the Investment Board (BKPM)
The old regulation, PM 13 of 2012, did not explicitly regulate the percentage of foreign ownership of ships.
Generally, the ship ownership registration consists of the following steps:
- Submission of the application through the Electronic Ship Registration System. The application needs to attach the following documents:
- Ship ownership certificate and measurement letter
- Identities of the ship owners, and their tax ID numbers (NPWP)
- Safety assessment report
- Customs payment receipt
- Recommendation from the Ministry of Maritime Affairs and Fisheries
- The application will be assessed by the Officials. The assessment will take maximum 3 working days.
- The assessment result:
- In case the application is incomplete, the application will be returned. The applicant can then complete the application within two business days.
- In case the application is complete, the Officials will issue ship-registration deed.
The New Regulation is in force as of May 19, 2017 and replaces the Old Regulation.
This column is provided by PNB Law Firm Jakarta