INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
intended to simplify the requirements and procedures for obtaining the business licence. However, since the nomenclature of the Standard Certificate is still rela - tively new, there may be discrepancies between the regulation and the actual implementation of it. Vessel Certification Besides the SIUPAL (now the Standard Certificate), a company that owns a ship will obtain several addition - al licences from the online single submission system. Ship-owning companies must obtain the following commercial/operational licences: • a vessel nationality certificate ( surat tanda kebang- saan kapal ); • a tonnage certificate ( surat ukur ); • a safety certificate ( sertifikat keselamatan ); • a load line certificate ( sertifikat garis muat ); • a safe manning certificate ( sertifikat pengawakan kapal ) for manned vessels; • a document of compliance ( dokumen penyesuaian manajemen keselamatan ) for manned cargo ves - sels with a gross tonnage equal to or larger than 500 tonnes; and • a safety management certificate ( sertifikat manaje - men keselamatan ) for manned cargo vessels with a gross tonnage equal to or larger than 500 tonnes. Foreign and locally flagged vessels operating in Indo - nesia must acquire the following pollution prevention certificates: • an international oil pollution prevention certificate ( sertifikat internasional pencegahan pencemaran oleh minyak ); • an international air pollution prevention certificate ( sertifikat internasional pencegahan pencemaran oleh udara ); and • an international sewage pollution prevention certifi - cate ( sertifikat internasional pencegahan pencema - ran oleh kotoran ). In addition, any vessel communicating through the radio frequency spectrum must obtain a ship radio station certificate, according to Law No 36 of 1999 regarding Telecommunications, 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 Law, and Minister of Communication and Informatics (now Minister of Communication and Digital) Regulation No 7 of 2021 regarding the Use of Radio Frequency Spectrum, as recently amended by Minister of Communication and Informatics Regula - tion No 9 of 2023. Cabotage Principle The Shipping Law provides that domestic sea trans - portation must be carried out by an Indonesian ship - ping company with an Indonesian-flagged vessel and Indonesian crew. The scope of these provisions is often seen to cover most vessels, including vessels in Indonesian waters that do not engage in domestic sea transportation. Specific types of foreign-flagged vessels operating in Indonesian waters for specific types of activities may be exempted from cabotage rules as regulated under MOT Regulation No PM 2 of 2021 regarding Proce - dures and Requirements for the Granting of Foreign Vessel Utilisation Approval for Activities Other than Domestic Carriage of Passengers and/or Goods. This Regulation provides an exhaustive list of the types of activities for which foreign vessels may be used, namely: • oil and gas surveys; • drilling; • offshore construction; • offshore operational support; • dredging; • salvage and underwater works; • electricity activities (performed by power plant ves - sels); and • terminal construction. To be able to conduct these activities, foreign-flagged vessels must apply for approval for the use of a foreign vessel ( persetujuan penggunaan kapal asing – PPKA) after obtaining their SIUPAL/Standard Certificate. Vessel Ownership Shareholding Requirement Before the introduction of GR 31/2021, vessel reg - istration in Indonesia was governed under the Ship - ping Law and MOT Reg 39/2017. Article 158 (2) of the Shipping Law and Article 5 (2) of MOT Reg 39/2017
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