MINISTER OF TRANSPORTATION REPUBLIC OF INDONESIA ...

MINISTER OF TRANSPORTATION

REPUBLIC OF INDONESIA

MINISTER OF TRANSPORTATION OF REPUBLIC OF INDONESIA

REGULATION

NUMBER: PM 10 YEAR 2014

REGARDING

PROCEDURE AND REQUIREMENTS FOR USAGE OF FOREIGN VESSEL FOR

ACTIVITIES OTHER THAN TRANSPORTING PASSENGERS AND/OR GOODS

IN NATIONAL SEA TRANSPORTATION

WITH THE BLESSINGS OF THE ONE AND ONLY GOD

MINISTER OF TRANSPORTATION OF REPUBLIC OF INDONESIA,

Considering : a. That the majority of foreign vessels

used for offshore construction

activities, dredging, salvaging and

underwater works on Indonesian waters

according to the provisions of the

Minister of Transportation’s

Regulation Number PM 48 Year 2011

regarding the Procedure and

Requirements for Usage of Foreign

Vessel for Activities Other Than

Transporting Passengers and/or Goods

in National Sea Transportation based

on the road map have expired, meaning

that they are now sailing under

Indonesian flag;

b. Whereas, based on the results of

evaluation, the usage of foreign

vessels for activities as stated in

Section a is still necessary since

there’s only a limited number of

vessels with Indonesian flag;

c. Whereas, based on the considerations

stated in items a and b, a Minister

of Transportation Regulation of

Republic of Indonesia regarding the

Procedure and Requirements for Usage

of Foreign Vessel for Activities

Other Than Transporting Passengers

and/or Goods in National Sea

Transportation;

In Reference to : 1. Law Number 22/2001 regarding Oil and

Natural Gas (State Gazette of

Republic of Indonesia Number

136/2001, Addendum to State Gazette

of Republic of Indonesia number

4152);

2. Law Number 17/2008 regarding Sea

Navigation (State Gazette of Republic

of Indonesia Number 64/2008, Addendum

to State Gazette of Republic of

Indonesia number 4849);

3. Government Regulation Number 51/2002

regarding Sea Navigation (State

Gazette of Republic of Indonesia

Number 95/2002, Addendum to State


number 4227);


regarding Harbors (State Gazette of




5070);


regarding Preservation of Maritime

Environment (State Gazette of

Republic of Indonesia Number 27/2010,

Addendum to State Gazette of Republic

of Indonesia number 5109);


regarding Water Transportation (State




number 5108) as was amended by

Government Regulation Number 22/2011

(State Gazette of Republic of

Indonesia Number 43/2011, Addendum to

State Gazette of Republic of


7. Presidential Regulation Number

47/2009 regarding the Establishment

and Organization of State Ministries

as was amended several times, last by

Presidential Regulation Number

55/2013;


24/2010 regarding the Position,

Duties and Functions of State

Ministries as well as Structure of

Organization, Duties and Functions of

Echelon I of State Ministries as was

amended several times, last by


56/2013;

9. Minister of Transportation’s

Regulation Number KM 60/2010

regarding Organization and Work

Procedure for the Ministry of

Transportation as was amended by the


Regulation Number PM 68/2013;


Regulation Number 93/2013 regarding

the Establishment and Business of Sea

Transportation;

DECIDING

To stipulate : MINISTER OF TRANSPORTATION OF REPUBLIC OF

INDONESIA’S REGULATION REGARDING THE

PROCEDURE AND REQUIREMENTS FOR USAGE OF

FOREIGN VESSELS FOR ACTIVITIES OTHER THAN

TRANSPORTING PASSENGERS AND/OR GOODS IN

NATIONAL SEA TRANSPORTATION

Article 1

The following definitions apply to this

Regulation:

1. Vessel is a means of water

transportation in certain forms and

types, powered by wind, machine or

other energy sources, tugged or

propelled, including vessels with

dynamic support, underwater vessel as

well as immobile floating objects and

structures.

2. Foreign Vessel is a vessel sailing

under non-Indonesian flags and which

is not registered on the List of

Indonesian Vessels.

3. Vessels under Indonesian Flag are

those registered on the List of

Indonesian Vessels.

4. National Sea Transportation is a sea

transportation activity performed on

Indonesian waters and organized by

national shipping companies.

5. National Shipping Company is an

Indonesian shipping legal entity which

organizes shipping activities on

Indonesian waters and/or from and to

seaports.

6. The Minister refers to the Minister of

Transportation.

7. Director General refers to the

Director General of Sea

Transportation.

Article 2

(1) Foreign vessels can conduct other

activities which are not included as

passengers and/or goods

transportation in national sea

transportation activities on

Indonesian waters if there’s no or

there are inadequate number of

vessels with Indonesian flag.

(2) Foreign vessels as stated in Section

(1) require Ministerial license.

(3) Activities other than transporting

passengers and/or goods in national

sea transportation activities as

stated in Section (1), including the

following activities:

a. Survey of oil and natural gas;

b. Drilling;

c. Offshore construction;

d. Dredging; and

e. Salvage and underwater works.

Article 3

Foreign vessels for oil and natural gas

survey activities as stated in Article 2

Section (3) item a consist of the

following:

a. Seismic survey;

b. Geophysical survey; and

c. Geotechnical survey.

Article 4

Foreign vessels for drilling activities

as stated in Article 2 Section (3) item b

consist of the following:

a. Jack up rig;

b. Semi submersible rig;

c. Deep water drill ship;

d. Tender assist rig; and

e. Swamp barge rig

Article 5

Foreign vessels for offshore construction

activities as stated in Article 2 Section

(3) item c consist of

derrick/crane/pipe/cable/Subsea Umbilical

riser Flexible (SURF) laying

barge/vessel.

Article 6

Foreign vessels for dredging activities

as stated in Article 2 Section (3) item d

consist of the following:

a. Drag-head Suction Hopper Dredgers

(DSHD) larger than 5,000 m3; and

b. Trailing Suction Hopper Dredgers

(TSHD) larger than 5,000 m3.

Article 7

Foreign vessels for salvaging activities

and underwater works as stated in Article

2 Section (3) item e consist of the

following:

a. Heavy floating cranes larger than 300

tons; and

b. Heavy crane barges larger than 300

tons.

Article 8

Foreign vessels used for other activities

and/or for transporting goods which do

not include passengers and/or goods

specified in the national sea

transportation activities on Indonesian

waters as stated in Article 2 Section (1)

shall be operated by national shipping

companies.

Article 9

(1) License for usage of foreign vessels

as stated in Article 2 Section (2)

shall be given by the Minister after

fulfilling the following

requirements:

a. Work plan complete with schedule

and work area for activities

marked with geographical

coordinate;

b. Charter party between the national

shipping companies and foreign

vessel owners and work contracts

and/or Letter of Intent (LOI) from

employers;

c. Copy of Shipping Company Business

License Certificate (SIUPAL);

d. Copy of ship registration /

nationality certificate;

e. Copy of ship safety and security

certificate;

f. Copy of ship pollution prevention

certificate;

g. Copy of ship classification

certificate;

h. Copy of list of ship crew; and

i. Copy of safety management

certificate.

(2) Foreign Vessel Usage License as

stated in Section (1) may be given by

the Minister after a minimum of 1

(one) attempt of procuring a vessel

with Indonesian flag which has been

communicated in writing and replied

to by the INSA at the latest of 5

(five) work days since the document

is received in full, and provided

that there’s no similar ship

available with Indonesian flag,

proven with an auction announcement.

(3) License for usage of foreign vessels

as stated in Section (1) shall be

given for a maximum period of 6 (six)

months and available for extension

after evaluation.

Article 10

(1) To obtain a license for usage of

foreign vessels as stated in Article

9 Section (1), the Applicant must

submit an application to the Minister

through the Director General by

submitting required documents stated

in Article 9 Section (1) at the

latest of 14 (fourteen) work days

before the ship is operated using the

format of Example 1 in Annex I, which

serves as an integral part of this

Minister Regulation.

(2) Based on the license application

stated in Section (1), the Director

General conducts a research on the

requirements for usage of foreign

vessels at the latest of 7 (seven)

work days since the request is

received in full.

(3) If the requirements as stated in

Section (2) are not yet fulfilled

upon examination, the Director

General shall return the application

in writing to the Applicant for a

more complete fulfillment of

requirements.

(4) Returned applications as stated in

Section (3) may be re-applied to the

Director General after such requests

have been fulfilled.

(5) If the result of examination on

requirements as stated in Section (2)

has been fulfilled, the Director

General shall deliver the result of

examination to the Minister.

(6) Based on the result of examination by

the Director General, the Minister

shall issue a license for usage of

foreign vessels at the latest of 7

(seven) days in the format specified

in Minister Decree as stated in

Example II of Annex I, which serves

as an integral part of this Minister

Regulation.

Article 11

(1) In the event of request for usage of

foreign vessels other than the types

regulated under this Minister Decree,

the Minister may grant an exemption

after evaluation by a special team,

the result of which is stated into a

Minute of Evaluation.

(2) The team mentioned in Section (1)

consist of, at least, the elements of

Directorate of Sea Traffic and

Transportation, Directorate of

Seaports and Dredging, Directorate of

Shipping and Sailing, Directorate of

KPLP, Directorate of Navigation,

Legal Affairs and KSLN Bureau, Legal

Department of Directorate General of

Sea Transportation, as well as

relevant stakeholders accordingly.

(3) Evaluation performed by the Team

stated in Section (1) must take the

following factors into consideration:

a. Types of ships requested with

Indonesian flag are not yet

available nor inadequate, proven

with recommendations from INSA;

b. The activities performed are of

strategic national importance,

which otherwise will disturb the

national energy sustainability

and, in turn, the Indonesian

economy; and

c. Recommendations with very limited

time frame.

(4) Foreign vessel usage policy, as

stated in Section (1), may be granted

by the Minister after a minimum of 1

(one) attempt of procuring vessels

with Indonesian flag and there’s no

vessel of similar type with

Indonesian flag, as proven with

auction announcement.

(5) Requirements for the granting of

foreign vessel usage policy as stated

in Section (1) shall refer to the one

stated in Article 9 Section (1).

(6) Foreign vessel usage policy as stated

in Section (1) shall be granted by

the Minister for the required period

and at the latest of 3 (three)

months.

Article 12

Foreign vessels can perform activities

other than transporting passengers and/or

goods in national sea transportation on

Indonesian waters in the period specified

in Annex II, which serves as an integral

part of this Minister Regulation.

Article 13

(1) For the purpose of implementing the

cabotage principle in a consequent

manner, the Director General is

willing to evaluate the adequacy of

ships with Indonesian flag as stated

in Article 2 Section (1).

(2) The evaluation as stated in Section

(1) is performed regularly every 6

(six) months by cooperating with

relevant institutions and service

providers and users associations.

Article 14

The Director General performs technical

management and supervision on the

execution of this Minister’s Regulation.

Article 15

With the promulgation of this Minister

Regulation, the Minister of

Transportation Regulation Number PM

48/2011 regarding the Procedure and

Requirements for Granting the License of

Foreign Vessel Usage for Activities other

than Transporting Passengers and/or Goods

in National Sea Transportation Activities

shall be deemed removed and ineffective.

Article 16

This Minister Regulation shall apply on

its date of promulgation.

The promulgation of this Minister

Regulation shall be stated in a State

Gazette of Republic of Indonesia for

public acknowledgement.

Stipulated in Jakarta

On March 11th 2014


OF REPUBLIC OF INDONESIA

Signed.

E.E. MANGINDAAN

Promulgated in Jakarta

On the 13th of March 2014

MINISTER OF LAW AND HUMAN

RIGHTS AFFAIRS

OF REPUBLIC OF INDONESIA,

Signed

AMIR SYAMSUDIN

STATE GAZETTE OF REPUBLIC OF

INDONESIA NUMBER 321/2014

This copy is identical with the

original document

HEAD OF LEGAL AFFAIRS AND KSLN

BUREAU

DR. UMAR ARIS, SH, MM, MH

Pembina Utama Muda (IV/c)

NIP. 19630220 198903 1 001

APPENDIX I


REGULATION

Number: PM 10/2014

Date: 11 MARCH 2014

EXAMPLE 1

........, ............... ..................

Number :

Classification :

Annex :

Subject : Foreign Vessel Usage Application

To

Minister of Transportation

Cq. Director General of

Sea Transportation

In

JAKARTA

1. Dear Sir/Madam, we hereby inform you that based on the

Minister of Transportation Regulation Number .....

Year .... regarding the Procedure and Requirements for

Foreign Vessel Usage for Activities Other than

Transporting Passengers and/or Goods in National Sea

Transportation Activities, PT. ....................

has submitted a Foreign Vessel Usage License

Application by the name of ................... for

....................... activities.

2. As materials for consideration, the application was

attached with 1 (one) document to fulfill the

following requirements:

a. Work plan complete with schedule and work area for

activities marked with geographical coordinate;

b. Charter party between the national shipping

companies and foreign vessel owners and work

contracts and/or Letter of Intent (LOI) from

employers;

c. Copy of Shipping Company Business License

Certificate (SIUPAL);

d. Copy of ship registration / nationality certificate;

e. Copy of ship safety and security certificate;

f. Copy of ship pollution prevention certificate;

g. Copy of ship classification certificate;

h. Copy of list of ship crew;

i. Copy of safety management certificate; and

j. Copy of auction announcement.

3. Thank you for your attention and cooperation.

Applicant,

.....................

Cc:

1. Minister of Transportation

2. Head of SKKMIGAS

EXAMPLE 2

MINISTER OF TRANSPORTATION DECREE

NUMBER:

REGARDING

PROCUREMENT OF LICENSE TO PT............... USING FOREIGN

VESSELS FOR ACTIVITIES OTHER THAN TRANSPORTING PASSENGERS

AND/OR GOODS IN NATIONAL SEA TRANSPORTATION ACTIVITIES

WITH THE BLESSINGS OF THE ONE AND ONLY GOD

MINISTER OF TRANSPORTATION,

Considering : a. Whereas, based on Article .........

section (....) of Minister of

Transportation of Republic of

Indonesia Regulation Number PM

........ Year .........., the usage

of foreign vessels for activities

other than transporting passengers

and/or goods in national sea

transportation is possible only

after obtaining permission from the

Minister of Transportation;

b. Whereas, for the purpose of

supporting the .............

activities, PT..............

requires a foreign vessel for

activities other than transporting


sea transportation;

c. Whereas, according to the result of

examination on the application

submitted by PT. ................ to

use foreign vessel .......... for



sea transportation, the company has

fulfilled the specified

requirements;

d. Whereas, based on considerations as

stated in items a, b and c, a

Minister of Transportation Decree

regarding the Procurement of License

to PT. .............. to use the

Foreign Vessel ............ for



sea transportation must be

stipulated;

In Reference to : 1. Law Number 22/2001 regarding Oil and

Natural Gas (State Gazette of




4152);

2. Law Number 17/2008 regarding Sea

Navigation (State Gazette of Republic

of Indonesia Number 64/2008, Addendum

to State Gazette of Republic of



regarding Sea Navigation (State




number 4227);


regarding Water Transportation (State




number 5108) as was amended by

Government Regulation Number 22/2011

(State Gazette of Republic of

Indonesia Number 43/2011, Addendum to

State Gazette of Republic of



47/2009 regarding the Establishment

and Organization of State Ministries

as was amended several times, last by


55/2013;


24/2010 regarding the Position,

Duties and Functions of State

Ministries as well as Structure of

Organization, Duties and Functions of

Echelon I of State Ministries as was

amended several times, last by


56/2013;


Regulation Number KM 60/2010

regarding Organization and Work

Procedure for the Ministry of

Transportation as was amended by the


Regulation Number PM 68/2013;


Regulation Number PM 93/2013

regarding the Establishment and

Business of Sea Transportation;

9. Minister of Transportation

Regulation Number ............. Year

.............. regarding the

Procedure and Requirements for Usage

of Foreign Vessels for activities

other than transporting passengers

and/or goods in national sea

transportation must be stipulated;

DECIDING

To stipulate : THE MINISTER OF TRANSPORTATION DECREE

REGARDING THE PROCUREMENT OF LICENSE TO PT

........... FOR USAGE OF FOREIGN VESSEL

............ FOR ACTIVITIES OTHER THAN

TRANSPORTING PASSENGERS AND/OR GOODS IN

NATIONAL SEA TRANSPORTATION;

FIRST : To procure license to the following party:

a. Name of Company :

...............................

b. Business Sector :

...............................

c. Address :

...............................

d. NPWP :

...............................

e. Person in Charge :

...............................

To use the following foreign vessel for


passengers and/or goods in national sea

transportation:

a. Ship Specifications:

1. Name of Ship :

.................................

2. Flag :

.................................

3. Call Sign :

.................................

4. IMO Number :

.................................

5. Size :

.................................

6. Principal/Owner :

.................................

b. Activity work area with the following

geographical coordinate:

.....° .....’ .....” ...... / .....°

.....’ .....” ......

.....° .....’ .....” ...... / .....°

.....’ .....” ......

.....° .....’ .....” ...... / .....°

.....’ .....” ......

c. Seaports visited:

...............

SECOND : Holder of Foreign Vessel Usage License as

stated in the FIRST DICTUM is required to

perform the following obligations during

its activities:

a. Complying with the provisions of law and

regulations in the field of seaport

activities, sea transportation traffic,

safety and security of navigation and

preservation of the environment;

b. Complying with the provisions of law

from other Government institutions in

relation with their main business;

c. Fully responsible for the operation of

the said foreign vessels;

d. Reporting the operational activities of

foreign vessel on a monthly basis to the

Minister of Transportation through the

Director General of Sea Transportation.

THIRD : License for the usage of foreign vessels

as stated in the FIRST Dictum shall apply

for ....... (......) months.

FOURTH : License for the usage of foreign vessels

may be revoked if the holder of

operational license fails to fulfill its

obligations as stated in the SECOND Dictum

of this Minister Decree and the provisions

of law in the field of sailing.

FIFTH : This Minister Regulation shall apply on

its date of stipulation.

Stipulated in Jakarta

Date:

MINISTER OF

TRANSPORTATION

......................

.....

Copy of this Ministerial Regulation shall be forwarded to

the following officials:

1. Minister Coordinator of Politics, Law and Security;

2. Minister Coordinator of Economy;

3. Minister of State Secretary;

4. Minister of Finance;

5. Minister of Law and Human Rights Affairs;

6. Minister of Energy and Mineral Resources;

7. Chief of Police Force of Republic of Indonesia;

8. Chief of Naval Staff;

9. Secretary General, Inspector General and Director

General of Sea Transportation, Ministry of

Transportation;

10. Head of SKKMIGAS;

11. Chairman of DPP INSA.


Signed

E.E. MANGINDAAN

Copy is identical to the original document

HEAD OF LEGAL AFFAIRS AND KSLN BUREAU,



NIP. 19630220 198903 1 001

ANNEX II


REGULATION

Number : PM 10 TAHUN 2014

Date : 11 MARCH 2014

TIME PERIOD IN WHICH FOREIGN VESSELS MAY PERFORM

ACTIVITIES OTHER THAN TRANSPORTING PASSENGERS AND/OR GOODS

IN NATIONAL SEA TRANSPORTATION ACTIVITIES

NO. TYPE OF ACTIVITY /

VESSEL

EFFECTIVE PERIOD

1. Oil and Natural Gas

Survey:

a. Seismic

survey;

up to the end of December

2014

b. Geophysical survey;

and


2014

c. Geotechnical survey. up to the end of December

2014

2. Drilling:

a. Jack up rig; up to the end of December

2015

b. Semi submersible rig; up to the end of December

2015

c. Deep water drill

ship;


2015

d. Tender assist rig;

and


2015

e. Swamp barge rig up to the end of December

2015

3. Offshore Construction:

Derrick/Crane,

Pipe/Cable/Subsea

Umbilical Riser Flexible

(SURF) Laying Barge /

Vessel


2014

4. Dredging:

a. Drag-head Suction

Hopper Dredgers (DSHD)

of more than 5,000 m3;

and


2014

b. Trailing Suction

Hopper Dredgers (TSHD)

of more than 5,000 m3.


2014

5. Salvaging and underwater

works:

a. Heavy floating cranes

larger than 300 tons;

and


2014

b. Heavy crane barges

larger than 300 tons.


2014


Signed

E.E. MANGINDAAN

Copy is identical to the original document

HEAD OF LEGAL AFFAIRS AND KSLN BUREAU,



NIP. 19630220 198903 1 001

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