Introduction

Indonesia’s maritime sector has entered a new era of regulatory enhancement with the recent amendments to the 2024 Shipping Law. These changes, pivotal for both local and international maritime stakeholders, reflect the government’s commitment to strengthening the foundational pillars of the maritime industry, including safety, environmental responsibility, and infrastructural development. This article provides a comprehensive overview of the significant amendments introduced, which are set to redefine the landscape of maritime operations and strategic development in Indonesia.

The 2024 Shipping Law has introduced comprehensive changes, particularly emphasizing the recalibration of joint venture requirements for vessel ownership. Previously, the law mandated that a joint venture between a national and a foreign sea transport company must own vessels ranging from a minimum of 5,000 to 50,000 gross tonnages. The amendment has expanded these provisions to foster greater international collaboration and investment opportunities in Indonesia’s burgeoning maritime sector.

The amendments encapsulate four main areas:

Empowerment of Traditional Shipping (Pelayaran Rakyat): The new law significantly strengthens the support for Pelayaran Rakyat by introducing stricter safety and environmental standards. It includes detailed guidelines for improving human resources, vessels, and shipyard capabilities, aiming to boost the economic viability of traditional shipping methods and enhance connectivity in Indonesia’s remote areas.
Maritime and Coastal Defense Improvements: To address the overlapping authorities between various maritime institutions, the amendments streamline responsibilities and clarify the roles of the Indonesian Sea and Coast Guard, Maritime Safety Agency (BAKAMLA), Navy, and Water Police. This restructuring is designed to eliminate ambiguities and enhance the efficacy of maritime security measures under the direct supervision of the shipping sector’s ministerial leadership.
Revisions to Penalties and Sanctions: Reflecting a more stringent approach to regulatory compliance, the law now imposes tougher penalties for violations of shipping and port regulations. The updated sanctions include increased fines and extended imprisonment terms, underscoring the government’s resolve to enforce maritime law and ensure safety at sea.
Infrastructure Development for Pelayaran Perintis: The amendments mandate the government to not only develop physical infrastructure and port facilities but also to provide necessary vessels for Pelayaran Perintis. This initiative is aimed at bolstering the support infrastructure for pioneering maritime services, facilitating better integration of maritime operations across the archipelago.

The 2024 amendments to Indonesia’s Shipping Law mark a significant progression in the nation’s maritime policy, highlighting an adaptive approach to global maritime trends and challenges. Enhancing the legal framework and operational standards are poised to significantly impact the efficiency and sustainability of maritime activities in Indonesia. Stakeholders are encouraged to familiarize themselves with the new regulations to seamlessly navigate this updated legal maritime landscape, ensuring compliance and capitalizing on the opportunities presented by a more structured and supportive maritime environment.

Source: https://www.legal500.com/guides/chapter/indonesia-shipping/

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Introduction

The amendments encapsulate four main areas:

Empowerment of Traditional Shipping (Pelayaran Rakyat): The new law significantly strengthens the support for Pelayaran Rakyat by introducing stricter safety and environmental standards. It includes detailed guidelines for improving human resources, vessels, and shipyard capabilities, aiming to boost the economic viability of traditional shipping methods and enhance connectivity in Indonesia’s remote areas.
Maritime and Coastal Defense Improvements: To address the overlapping authorities between various maritime institutions, the amendments streamline responsibilities and clarify the roles of the Indonesian Sea and Coast Guard, Maritime Safety Agency (BAKAMLA), Navy, and Water Police. This restructuring is designed to eliminate ambiguities and enhance the efficacy of maritime security measures under the direct supervision of the shipping sector’s ministerial leadership.
Revisions to Penalties and Sanctions: Reflecting a more stringent approach to regulatory compliance, the law now imposes tougher penalties for violations of shipping and port regulations. The updated sanctions include increased fines and extended imprisonment terms, underscoring the government’s resolve to enforce maritime law and ensure safety at sea.
Infrastructure Development for Pelayaran Perintis: The amendments mandate the government to not only develop physical infrastructure and port facilities but also to provide necessary vessels for Pelayaran Perintis. This initiative is aimed at bolstering the support infrastructure for pioneering maritime services, facilitating better integration of maritime operations across the archipelago.