As the world’s largest archipelago, Indonesia’s maritime sector offers significant opportunities. The government continues to welcome foreign investment in domestic sea transportation, a vital industry for national connectivity. However, new regulations set to take effect in October 2025 introduce stricter requirements for foreign investors, reinforcing the strategic nature of this sector.
This guide breaks down the key provisions of Law No. 6 of 2024 on Shipping, so you can understand the new landscape for foreign investment in Indonesia’s domestic shipping business.
Key Takeaways
- 49% Foreign Ownership: Foreign investment in a domestic shipping company (PT PMA) is capped at 49%, and the partner must be a foreign shipping company.
- GT 50,000 Vessel Minimum: The minimum vessel size for a PT PMA has increased tenfold, from GT 5,000 to a substantial GT 50,000, effective October 2025.
- 100% Indonesian Crew: Vessels operated by a PT PMA must be staffed entirely by Indonesian citizens.
- Legal Entities Only: Both the foreign and local partners in the joint venture must now be legal entities, not individuals.
- Strict Licensing & Reporting: Companies must obtain a SIUPAL license by meeting extensive requirements and adhere to strict ongoing reporting obligations to maintain it.
The Right Structure: Legal Entity and Ownership Rules
Foreign investors cannot operate directly in Indonesia’s shipping industry. Participation is only possible through a specific Indonesian legal entity: a Joint Venture Foreign Investment Company (PT PMA). The new regulations have tightened the rules for this structure.
- 49% Foreign Ownership Cap: Foreign participation in a shipping PT PMA is limited to a maximum of 49%. The foreign partner must be an established foreign sea transportation company, not an individual.
- Local Partner Requirements: The majority 51% ownership must be held by a qualified Indonesian partner, which can be a State-Owned Enterprise (BUMN), a Regional-Owned Enterprise (BUMD), or a Domestic Investment Company (PT PMDN) that is 100% owned by Indonesian citizens.
- Key Change: Under the new law, both the local and foreign partners in the joint venture must be legal entities. Previously, individuals could participate, but this is no longer the case.
Raising the Bar: New Vessel and Crew Requirements
The most significant changes in the 2025 regulations relate to the vessels used in domestic shipping.
- Indonesian Flag Mandatory: All vessels operated by the PT PMA must be registered in Indonesia and fly the Indonesian flag.
- Minimum Vessel Size Increased: The minimum vessel size requirement for a PT PMA has been dramatically increased from GT 5,000 to GT 50,000. This new, higher threshold is a critical consideration for new investors.
- All-Indonesian Crew: Vessels owned and operated by a PT PMA must be crewed entirely by Indonesian citizens.
- Valid Technical Documents: Every vessel must be certified as seaworthy and possess all required documents, including its Ship Registration Deed (Grosse Akta), Tonnage Certificate, and Ship Safety Certificate.
Getting Licensed: The SIUPAL Process
To operate legally, a shipping company must secure a Sea Transportation Company Business License, known as a SIUPAL. Obtaining this license requires fulfilling both administrative and technical prerequisites.
- Administrative Requirements: Your company must have its Deed of Establishment, Taxpayer ID (NPWP), a clear business plan, and certified maritime experts on your team. You must also submit an Integrity Pact and a Statement of Absolute Responsibility for your documents.
- Technical Requirements: You must provide proof of ownership of an Indonesian-flagged vessel that meets the minimum size requirement (GT 50,000 for a PT PMA) and confirm that your crew consists of Indonesian citizens.
Depending on your business activities, you may need additional licenses, such as a SIUPPAK for manning and crew recruitment services.
Staying Compliant: Obligations of a Licensed Operator
Receiving your SIUPAL is the first step. Licensed companies have ongoing operational and reporting responsibilities.
- Operational Duties: You must begin actual shipping operations within three months of the license being issued and prioritize providing internship opportunities for maritime cadets.
- Reporting Requirements: Companies are subject to strict reporting schedules, including:
- Annual Reports on shareholding and financial statements.
- Monthly Reports summarizing vessel visits.
- Immediate reports of any changes to company ownership, address, or leadership.
Your SIUPAL remains valid as long as you operate, but it will be evaluated every two years by the Directorate General of Sea Transportation to ensure continued compliance.
Conclusion
Indonesia’s domestic shipping sector remains a promising area for foreign investment, but the barrier to entry is now significantly higher. The new regulations, effective October 2025—particularly the 49% ownership cap and the GT 50,000 minimum vessel requirement—demand careful planning and substantial capital investment.
Navigating these new legal and technical requirements can be complex. To ensure your venture is structured for success and fully compliant with Indonesian law, our team of experts is here to provide the professional guidance you need.
For a detailed consultation on how these new shipping regulations affect your investment plans, please fill in the form below or contact us directly at contact@permitindo.com. Let us help you chart a clear course into the Indonesian maritime sector.
