Indonesia: Foreign-flagged cruises and yachts to sail in Indonesian waters

In brief

Minister of Transportation Regulation No. 14 of 2023 on Amendment to Minister of Transportation Regulation No. 4 of 2022 on Services for Foreign-flagged Yachts and Cruise Ships (MOT 14/2023), which came into effect on 23 May this year, expands the ports that are available for foreign-flagged cruise ships and yachts to enter and exit Indonesian waters. Foreign-flagged cruise ships and yachts are allowed to sail in Indonesian waters if they have obtained the following:  

  1. A sailing license issued by the harbormaster
  2. A vessel declaration issued by the Head of Customs Office or the appointed customs and excise official at the entry point 

Specifically for cruises, a clearance approval for Indonesian territory from the Ministry of Foreign Affairs via an electronic portal (https://e-cait.kemlu.go.id/#) is also required.


Contents

Within Indonesian waters for foreign-flagged cruises and yachts

Although Indonesia applies the cabotage principle, i.e., all vessels operating in Indonesian waters have to fly the Indonesian flag and be manned by Indonesian crew, foreign cruise ships and/or yachts used for tourism purposes may be exempted, on the condition that they will not be sold and/or be leased to other parties when sailing in Indonesian waters, and/or they will not transfer passengers – for yachts sailing in Indonesia, except in an emergency.

MOT 14/2023 has increased the entry and exit points for foreign-flagged yachts in Indonesia to 29, and increased the points for embarkation and/or disembarkation for foreign-flagged cruise ships in Indonesia to 12. Through these additions, the Government of Indonesia aspires to create a better and more seamless travel experience for visitors travelling on foreign-flagged cruise ships and yachts and boost further investment and economic opportunities.

Up to three years of customs facilities

Vessel declaration is a relatively simple customs declaration applicable exclusively for foreign-flagged cruise ships and yachts that functions as a temporary import customs declaration, a guarantee letter, and an export customs declaration. Through vessel declarations, the government provides an exemption from import duties for foreign-flagged cruise ships and yachts along with their spare parts, a facility for easier import and export customs declaration, an exemption from fulfilling border and post-border import licensing, and an exemption from the obligation to declare transportation customs (pemberitahuan pabean pengangkutan). Once issued, the vessel declaration will be valid for up to three years.

* * * * *

LOGO_Indonesia HHP Law Firm_Jakarta

© 2023 HHP Law Firm. All rights reserved. HHP Law Firm is a member firm of Baker & McKenzie International. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information
Ponti Partogi
Partner at BakerMcKenzie
Jakarta
Read my Bio
ponti.partogi@hhplawfirm.com
Dyah Ayu Paramita
Associate Partner at BakerMcKenzie
Jakarta
dyahayu.paramita@hhplawfirm.com
Irvan Ardiansyah
Associate Partner (Customs)
Jakarta
irvan.ardiansyah@bakermckenzie.com

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.