New (revised) Shipping Law

On 8 April 2008, the house of representative approved revised Shipping Law No. 21 of 1992. This Law will allow foreign and domestic private entities to operate ports in Indonesia without having partnership or seek aid of state port operators PT Pelindo I, II and III, which partly function as port regulators, as well. PT Pelindo will no longer be the sole port operator and it will be treated similar to the private entities. This will end state monopoly on port ownership and there is an opportunity in the future that Indonesia will have an international port capable of serving direct shipments of Indonesian goods to overseas destinations. Further, some licenses will be transferred to Regional Government. The Law contains 22 chapters and 355 articles, with eight new chapters regulating mortgages and loans, maritime safety and security, the harbor master and the establishment of a sea and coast guard. PT Pelindo is given for 3 years for any adjustment of the New (revised) Shipping Law. For more information on this regulation, please contact Mr. Gatot Sanyoto at kusnalaw@kusnandar.com