Ship Registration and Ownership in Indonesia

Indonesia, as a maritime nation, has a structured legal framework governing ship registration and ownership. These regulations ensure national control over vessels operating under the Indonesian flag while promoting compliance with safety and legal standards. The key legal provisions for ship registration in Indonesia are outlined in Law No. 17 of 2008 on Shipping, as amended by Law No. 6 of 2023, and Minister of Transportation Regulation No. PM 39 of 2017 on Vessel Registration and Nationality.

Eligibility for Ship Registration

A ship can be registered in Indonesia if it meets the following criteria:

1. Ownership Requirements

   • Ships must be owned by either an Indonesian citizen or an Indonesian legal entity where at least 51% of shares are held by Indonesian nationals.
   • Foreign ownership in Indonesian-flagged vessels is generally restricted, with some exceptions under investment regulations.

2. Minimum Vessel Size

   • Only ships with a gross tonnage (GT) of at least 7 are eligible for registration.
   • Vessels below this threshold are not subject to mandatory registration but may still be recorded for specific legal purposes.

3. Exclusive Registration

   • The ship must not be registered in another country at the same time.
   • If the vessel was previously registered abroad, proof of deregistration is required before it can be registered in Indonesia.

Ship Registration Process

Shipowners must apply for registration through the Electronic Vessel Registration System (Sistem Pendaftaran Kapal Elektronik SPKE) or at the Harbormasters Office (Syahbandar) in designated ports. The required documents include:

• Proof of ownership (such as a bill of sale or purchase agreement)
• The ship's Tonnage Certificate (Surat Ukur)
• Owners identity documents (for individuals) or company documents (for legal entities)
• Taxpayer Identification Number (NPWP)
• Customs clearance documents (if the vessel is imported)
• Proof of title transfer payment (balik nama)

Upon submission, the Registrar of Ships (Pejabat Pendaftaran Kapal) reviews the application. If all requirements are met, the ship is officially registered, and the Grosse Akta Pendaftaran Kapal (Ship Registration Deed) is issued as proof of ownership.

Temporary Registration for Ships Under Construction

Ships that are still under constructionwhether in Indonesia or abroadmay receive temporary registration under Indonesian law. This is applicable if the hull, main deck, and superstructure are complete. A temporary registration certificate is issued, allowing the ship to be recognized as Indonesian while construction is finalized.

Prohibition of Dual Registration

Indonesian law strictly prohibits ships from being registered in multiple countries simultaneously. Before a foreign-registered vessel can be registered in Indonesia, the owner must provide a Certificate of Deletion from the previous countrys registry. This ensures that Indonesia maintains exclusive jurisdiction over ships flying its flag.

Conclusion

Ship registration in Indonesia follows a strict regulatory framework to ensure compliance with national and international maritime laws. By requiring Indonesian majority ownership, enforcing registration standards, and preventing dual registration, Indonesia safeguards its maritime interests and enhances legal certainty in the shipping industry. Shipowners must ensure proper documentation and compliance to operate legally within Indonesian waters.

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