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
Ministry of Transportation regulation 39/2017 (in Bahasa Indonesia)
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.