Maritime Moves – Set Up a Shipping Business in Indonesia
Get ready for a flood of profits as 3E Accounting tells you how to set up a shipping business in Indonesia with success!
Indonesia, due to its geographical position, has a natural predisposition for marine logistics. Situated right in the middle of the busiest marine lanes, it has more than a hundred commercial ports of all sizes. It also enjoys an exalted position as Southeast Asia’s transport hub. It is no surprise that this sector alone has contributed to approximately 11% of Indonesia’s Gross Domestic Product (GDP). Here’s what you need to know to set up a shipping business in Indonesia.
The Winds of Trade are Blowing
The shipping business acts as a bridge that connects people, places and markets globally. It facilitates the movement of goods and services on a scale that can’t be matched by other sectors. While all industries have been affected by the global pandemic, the maritime sector has held steady and is par on course to growth.
The Indonesian government has made quite a few changes in the shipping laws recently. This was done to protect and encourage domestic trade and business. Primary amongst this is the cabotage policy. It requires all local shipping services to be carried out only by Indonesia-based shipping companies.
Companies in the shipping business in Indonesia must also strictly adhere to share allocation as stipulated by Indonesian shipping laws. Ideally, the company should be entirely locally owned. Foreign owners are required to partner with a local, who must hold the majority share. However, Southeast Asian investors can own 70% of shares.
The most suitable type of company for the shipping business is one with legal entity status such as:
- Locally-owned Local Limited Liability Company (Perseroan Terbatas or PT)
- Foreign-owned Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA)
Incorporation and licensing can be done via the Online Single Submission (OSS) system by:
- Any organization, enterprise or individual
- Any existing or new business
- Businesses with both domestic and foreign capital
OSS Institution will provide a Business Identification Number (NIB) and a license to conduct business legally.
Ship registrations fall under the province of the Directorate General of Sea Transportation (DGST). They are assisted by the Biro Klasifikasi Indonesia (BKI) to inspect and certify vessels. Operating a shipping business requires a few types of licences and certifications. These include:
- Sea Transportation Business License (SIUPAL)
- Export and Import Business License (Angka Pengenal Ekspot (APE) or Angka Pengenal Impot (API))
- General Vessel Certification
- Pollution Prevention Certificate
- Ship Radio Station Certificate
A Siren Song of Success
It’s always best to engage international business partners when setting up a new company or even re-structuring your old one. 3E Accounting facilitates a worry-free experience as all essential documentation and procedures will be handled by the professionals. Partnering with 3E Accounting will ensure that setting up a shipping business in Indonesia is as relaxing as sailing into the sunset.
Contact 3E Accounting today for an inspiring conversation about your business needs.