PHOTO: CAMERON VENTI/UNSPALSH.COM
PHOTO: GUILLAUME BOLDUC/UNSPALSH.COM
Sea transport is a vital aspect to Indonesia’s trading infrastructure carrying over 80% of internationally traded goods. Indonesia has over 1,700 ports across the islands, with around 111 of these being commercial of which 11 are container ports. With the introduction of the Law no 11 of 2020 on Job Creation (the “Omnibus Law”), numerous articles regarding Shipping have been revised.
The Minister of Transportation has pushed the intentions of attracting more foreign investment to Indonesia’s maritime industry. Indonesia will be looking to provide competitive infrastructure (ports), vessels, and human resources (seafarers). This will include the upgrading of seven ports in Indonesia and transforming them into an integrated port hub.
One of the ways in which investment will be made easier for foreigners will be through the simplification of the bureaucracy.
The most significant change to the Shipping Law under the Omnibus Law is the centralisation of the licensing and certification authority with the central government. This means it may minimise the licensing costs (e.g. the time and money spent on applications, meeting with officials, application fees, renewals and etc.. ), which is once again a benefit for potential investors.