Mayapada Tower I, 12th and 14th Floor
Jl. Jend. Sudirman Kav. 28
Jakarta, 12920
Indonesia
Indonesia’s Director General of Sea Transportation (Direktur Jenderal Perhubungan Laut or “DJPL”) has issued a regulation that eases the moratorium it placed on the issuance of new Special Port Licenses and the extension of Private Port for Temporary Public Use Licenses last year.
The DJPL issued Decree No. KP-DJPL 762 of 2022 dated December 22, 2022, regarding the Arrangement of Ancillary Licensing to Support Business Activities (Perizinan Berusaha untuk Menunjang Kegiatan Usaha or “PB-UMKU”) of Special Port/Private Port, and/or the Stipulation of the Use of Special Port/Private Port for Temporary Public Use at the Directorate General of Sea Transportation Sector (“New Decree”).
The New Decree eases the moratorium that had been in place and now allows for the issuance of new Special Port Licenses and the extension of Private Port for Temporary Public Use Licenses with the verified satisfaction of certain additional criteria in the Integrated Sea Transportation Electronic System (Sistem Elektronik Hubla Terintegrasi or “SEHATI”) and/or the Online Single Submission (“OSS”) licensing system.
With the enactment of the New Decree, the previous decree that put in place the moratorium, DJPL Decree No. A.402/AL.308/DJPL dated July 22, 2022, regarding the Arrangement of Ancillary Licensing to Support Business Activities of Special Port/Private Port, and/or the Stipulation of the Use of Special Port/Private Port for Temporary Public Use at the Directorate General of Sea Transportation Sector (“Previous Decree”), is revoked.
We look at the differences between the Previous Decree and the New Decree:
| Previous Decree | New Decree |
| Moratorium on the (i) issuance of new Special Port Licenses and (ii) extension of Private Port for Temporary Public Use Licenses through SEHATI and the OSS system. | Requirement for the verified satisfaction of certain additional criteria for the (i) issuance of new Special Port Licenses and (ii) extension of Private Port for Temporary Public Use Licenses through the SEHATI and OSS System.
This verification process is regulated by DJPL Circular Letter No. 19 of 2022 dated August 8, 2022, regarding Implementation Guidelines for Fulfilling Licensing Requirements for Special Ports/Private Ports. |
| Moratorium is imposed on companies in the following sectors:
i) agriculture; ii) forestry; iii) fishery; iv) mining and quarrying; v) processing; vi) electricity, gas, geothermal and waste management; vii) recycling, water treatment and waste management; viii) construction; ix) wholesale trading; x) hospitality; xi) tourism; and xii) other business activities that require own berthing facilities. |
The verification process is imposed on companies in the following sectors:
i) agriculture; ii) mining and quarrying; and iii) wholesale trading. |
| Exemptions on the moratorium on the extension of Private Port for Temporary Public Use Licenses available to holders of a Special Port License that submit a Letter of Capability and agree to their private port being made a public port, which would then become part of the nearest public port.
|
Exemptions on the verification requirement for the extension of Private Port for Temporary Public Use Licenses available to holders of a Special Port License that submit a Letter of Intent notifying regulators they are applying for the exemption and then submit a Concession Feasibility Study (Kajian Kelayakan Konsesi) for their private port to be made a public port, which would become part of the nearest public port.
|
| Licenses issued based on the above exemption temporary for a maximum eight months. | Licenses issued based on the above exemption have the same term and applicability as regular licenses under the laws and regulations, provided the license applicant completes the Concession Feasibility Study within eight months. |
| Special Port Licenses and Private Port for Temporary Public Use Licenses in the main business sectors supporting designated national strategic projects, the shipbuilding industry or government activities may be granted after the company applying for the license consults with the DJPL. | Special Port Licenses and Private Port for Temporary Public Use Licenses in the main business sectors supporting designated national strategic projects or government activities may be granted after evaluation by the DJPL. |
Licenses Issued Under Previous Decree
With the enactment of the New Decree, Special Port Licenses and Private Port for Temporary Public Use Licenses issued under the Previous Decree shall remain valid until their expiration date and may be extended in accordance with the laws and regulations. However, an extension will only be granted after an evaluation by the DJPL regarding the (a) fulfillment of the prerequisite to complete a Concession Feasibility Study and (b) involvement in national strategic projects or government activities.
This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.
