Indonesian Shipping Law

The Indonesian Government and House of Representatives have officially enacted the draft of shipping law as Law No. 17/2008 concerning Shipping. The draft was initiated by the Department of Transportation, and submitted to Commission V of the House at the end of 2005.

On April 8, 2008, the long awaited bill was approved to replace Law No. 21/1992 concerning Shipping. The new law will end PT Pelindo’s monopoly in managing ports. In the older law, the state owned company PT Pelindo (“Pelindo”) functioned as both port regulator and port operator, whilst the new law rules that the company will no longer be the sole port operator in Indonesia in three years after the passing of the law. READ MORE..

Oil and Gas Industry: An Exception in Newly Effective Indonesian Cabotage Regulation

Cabotage principle is formally introduced in Presidential Instruction No. 5 of 2005 concerning the Empowerment of the Shipping Industries, which gives the National Transportation Company rights to commercially operate exclusively within Indonesia’s territorial waters. It is a policy requiring that sea transportation activities on the country’s waterways use Indonesian flagged vessels manned by Indonesian crew. The word cabotage is taken from the Spanish word “cabotage” and refers to “sailing from cape to cape”. In the context of maritime law, the cabotage principle grants rights to a country to trade and navigate within its own coastal territories, and to operate and regulate the traffic inside its territorial waters. READ MORE..