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The Republic of Indonesia in the era of President Joko Widodo’s (Jokowi) leadership provides many conveniences in doing business in Indonesia. The issuance of the Government Regulation No. 24 of 2018 on Electronically Integrated Business Licensing Service (Pelayanan Perizinan Berusaha Terintegrasi Secara Elektronik) (“ GR 24/18 ”) is one evidence that the Government of the Republic of Indonesia attempts to ease the business climate in Indonesia.

Since the issuance of GR 24/18, many business regulators through the related ministries issue regulations as the implementation of the GR 24/18. One of the these ministries is the Ministry of Transportation (“ MoT ”). The MoT recently issued Minister Regulation No. 89 of 2018 on Norms, Standards, Procedures and Criteria of Electronically Integrated Business Licensing in the Sea Transportation Sector (“ MR 89/18 ”). The MR 89/18 issued on 19 September 2018 has simplified licensing process in the sea transportation sector. The following are types of One Single Submission (OSS) in the sea transportation:

    1. Business License consists of:
      1. Public Port Licenses;
      2. Sea Transportation Business License;
      3. Sea Transportation Business License for People’s Shipping; and
      4. Service Business License related to the Water Transportation.
    1. Commercial or Operational License consists of:
      1. Commercial or Operational License in Port Sector;
      2. Commercial or Operational License in Sea Transportation Sector;
      3. Commercial or Operational License in Sea and Coast Guard Unit Sector;
      4. Commercial and Operational License in Shipping and Sea Sector; and
      5. Commercial and Operational License in Navigation Sector.

One of the permit simplications is related to the issuance of Special Terminal Permit (Izin Terminal Khusus) . We understand that under the previous regulation, Regulation of the MoT No. PM 20 of 2017 on Special Terminal and Terminal for Own Interest (“ MR 20/17 ”), investors were required to obtain a Location Determination from the MoT. However, after the issuance of MR 89/18, such the requirement has been removed by the Government.

Under MR 89/18, to operate a special terminal, investors are required to obtain a Special Terminal Permit. This permit will cover construction/development and operational stage under (certain) conditions. The government will grant 18 months for investors to complete the construction of a special terminal. Investors must fulfill commitments either in the construction/development stage or operational stage.

Please see the following table containing information to obtain Special Terminal Permit:

Special Terminal License

Stage

Requirements

Cost

Evaluation Period

Procedures of Submission

Construction/ Development

1.      Business Identification Number (Nomor Induk Berusaha, NIB) ;

2.      Business License based on MR 20/17;

3.      Proof of land ownership or land usage agreement;

4.      Technical study;

5.      Techincal study of berth facilities;

6.      Minutes of review and evaluation of the construction of special terminal from related Syahbandar and Navigation District;

7.      Environmental Permit.

 

IDR 3,000,000

10 Working Days

1.      Submission of the requirements to the MoT;

2.      The Section Head of Land Use, Water and Port Business and the Entrepreneurship Guidance examine the correctness of the required documents;

3.      Head of Sub-Directorate of Port Services and Business and the Entrepreneurship Guidance review the required documents;

4.      Director of Port acknowledges the draft of the Determination of Fulfillment of Special Terminal Development and Construction Commitment

5.      Head of Law Bureau acknowledges the draft of the Determination of Fulfillment of Special Terminal Development and Construction Commitment

6.      The Director General of Sea Transportation approves the draft of the Determination of Fulfillment of Special Terminal Development and Construction Commitment

7.      Payment of the Non-State Revenue (Penerimaan Negara Bukan Pajak, PNBP) ;

8.      Notification of the Fulfillment of Special Terminal Development and Construction Commitment in OSS System

 

Operational

Minutes of physical examination and berthing/off trials carried out by Syahbandar contains at least:

a.      The construction of the special terminal is done and carried out pursuant to the Determination of Fulfillment of Special Terminal Development and Construction Commitment

b.      The result of construction or development of special terminal has satisfied security, order and shipping safety aspects

3 Working Days

1.      The investor submits the documents of fulfillment of the commitment to the MoT after the construction/developmnent of special terminal is done;

2.      The Section Head of Land Use, Water and Port Business and the Entrepreneurship Guidance examine the correctness of the required documents;

3.      Head of Sub-Directorate of Port Services and Business and the Entrepreneurship Guidance review the required documents;

4.      Director of Port approves the Determination of Fulfillment of Special Terminal Operational Commitment

5.      Notification of the Determination of Fulfillment of Special Terminal Operational Commitment in OSS System integrated with the system of the MoT.

 

ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO as a  Law Firm Jakarta  assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo
dendi.adisuryo@adcolaw.com

Liza Mashita
liza@adcolaw.com

@2020 ADCO Law. All rights reserved.
This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.