Licenses Which Are Required by Shipping Companies in Indonesia
Licenses serve as authorizing documents which legitimize a business entity’s actions in a country. Therefore, all companies are to obtain any necessary licenses before beginning to conduct any business operations. For shipping companies in Indonesia, a Sea Transportation Business License (SIUPAL) is required. This license is electronically generated after the issuance of a temporary business license upon the registration of a shipping company.
Although it is not a license, the general vessel certification for each shipping vessel owned by a shipping company is also required. This certification is issued following the adherence of the vessel to safety, tonnage, and load line rules stipulated by the Indonesian authorities. The shipping company must also obtain a pollution prevention certificate which confirms the company’s willingness to adhere to pollution standards. For every shipping vessel owned by the company, there should also be a ship radio station certificate which states the communication channels to be used by the vessel during the vessel’s operation. Should any shipping company based in Indonesia intend to export or import any products, it must obtain an export and import business license. Export and import business licenses which are owned by shipping companies based in Indonesia may be renewed at any time through the proper legal means.
These as well as several other certification requirement constitute the licensing requirements for shipping vessels in Indonesia. The Sea Transportation Business License is issued to a shipping company after all of the necessary certification requirements have been fulfilled.
Laws in Indonesia Which Are Related to Shipping Companies
The shipping industry in Indonesia is replete with laws which have been created to regulate the industry and all activities therein. These laws have been integrated into a collective shipping law which is applicable to all shipping ventures within Indonesia’s shipping industry.
One of the most important shipping laws in Indonesia is Law No. 17 of 2008. This law stipulates that any costs or damages which have been suffered as a result of a collision between two or more vessels due to a force of nature are to be borne by the respective owners of the vessels. If the collision is the fault of a single vessel, the costs of the accident will be placed upon the owner of that vessel. If two or more vessels are considered to be at fault during a collision, the owners of the vessels will proportionately and collectively bear the costs of the collision.
The cabotage policy is also an extremely important piece of legislation which exists within Indonesia’s shipping industry. This shipping law originally stated that only vessels which have been registered under the flag of Indonesia were allowed to carry passengers and goods across Indonesia’s domestic ports. This policy implied that only Indonesia-based shipping companies were allowed to participate in local shipping services except when certain permissions which permitted a degree foreign participation were in force. An amendment of the cabotage policy would be created in order to restrict the importation of vessels from outside Indonesia. As such, foreign shipping companies which were allowed to operate within Indonesia were therefore required obtain their vessels from Indonesian ship-builders. The cabotage policy has been cited by some as one of the Indonesian government’s most notable efforts to increase the shipping industry‘s GDP contribution to the country from 11% to 25%.
There are several other laws related to Indonesia-based shipping companies. Marine casualty laws, for example, are in force to remove ambiguities in solving marine casualty cases when they occur. The Indonesian shipping laws also state requirements related to pollution; they state that it is the responsibility of crew members to prevent and mitigate pollution which is or would be emitted from their vessels. Vessel owners and operators are also required to insure their vessels against pollution and its effects. A further law also requires vessel owners to insure their vessels against wreck removal.
If you are having any trouble with the application for any business license in Indonesia, we at Paul Hype Page & Co will be able to be of service to you. We will work with you in order to ensure that you will not commit any errors while applying for a business license to be used by your Indonesian company. Should you happen to encounter any legal troubles, we will also contact government or other authorities on your behalf so that the problems faced can easily be resolved.
The shipping industry of Indonesia possesses tremendous potential for industrial growth. The government’s commitment to improvement of the industry in the country has created a suitable business climate. The growth potential of the shipping industry of Indonesia will therefore lead to an increased need for and purchase of shipping services by various people, businesses, and other entities from within Indonesia as well as from abroad. The need for transportation services to and from Indonesia’s ports has also increased tremendously. Therefore, starting a shipping company in Indonesia is clearly a viable business option.