ANNOUNCEMENT 10 May 2017

On 10 May 2017, the Indonesian Ministry of Transportation issued regulation 39/2017 on the registration of ships.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Transportation regulation 39/2017 (in Bahasa Indonesia)
http://jdih.dephub.go.id/assets/uudocs/permen/2017/PM_39_Tahun_2017_new_recognized.pdf

Inception date: 19 May 2017 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

Article 5 of the regulation restricts ships weighing at least 7 GT (Gross Tonnage) and registered in Indonesia to either Indonesian citizens or legal entities with majority-shares owned by Indonesian citizens. Paragraph 3 of the article further states that foreign ownership may not surpass 49%.

Article 24(2)a5 further states that a ship will immediately lose its Indonesian registration if it is sold to a foreign entity.

As this intervention will impact ship operators, freight services was selected as the affected sector.

The regulation came into force on 19 May 2017.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A