INDONESIA Law and Practice Contributed by: Stephen Igor Warokka and Mutiara Kasih Ramadhani, SSEK Law Firm
In addition, in line with Section 3.1 of the Tokyo MOU, the authority of port state control officers in connection with pollution matters is limited to inspecting a ship’s Master or crew and their readiness to prevent pollution. Indonesia recently succeeded in fulfilling the whitelist criteria for the Tokyo MOU, which should help reinforce shipping safety and secu - rity in Indonesian waters. 1.3 Domestic Legislation Applicable to Ship Registration The Shipping Law provides that an Indonesian vessel’s legal status is only valid if the vessel has already been registered in a particular juris - diction. Under Minister of Transportation (MOT) No PM 39 of 2017 regarding the Registration and Nationality of Vessels (“MOT Reg 39/2017”), vessel registration includes registration of the following: • ownership rights; • the granting of mortgages; and • other proprietary rights (such as bareboat charters and leasing). The MOT has appointed the director general of sea transportation to oversee this process. 1.4 Requirements for Ownership of Vessels In Indonesia, the operation or use of a vessel requires registration and licensing. The owner of a vessel can register the vessel in Indone - sia with a vessel title transfer and registrar offi - cial ( 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 Indo - nesian citizen or an Indonesian legal entity that is majority Indonesian owned. Article 7 of MOT
Reg 39/2017 provides that the following docu - ments 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 submit - ted 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 registra - tion 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 registra - tion deed. 1.5 Temporary Registration of Vessels MOT Reg 39/2017 permits the temporary regis - tration of vessels that are under construction in Indonesia or abroad. This temporary registration will be made in the form of a temporary registra - tion certificate, which will only be issued when construction of the hull, main deck and the entire superstructure has been completed. Article 160 of the Shipping Law prohibits the dual registration of vessels. 1.6 Registration of Mortgages Vessel mortgages in Indonesia fall under the authority and jurisdiction of the MOT. Under Arti - cles 28 and 29 of MOT Reg 39/2017, the benefi -
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