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Legal Updates

New Navigation Regulation – GR No. 5 of 2010

The government issued Government Regulation No. 5 of 2010 on Navigation (the “Regulation”) to facilitate the implementation of Articles 177, 183(2), 194, 186(2), 196, 206(2) of the Law No. 17 of 2008 regarding Shipping.

The Regulation repeals and replaces Government Regulation No. 81 of 2000 regarding Navigation, and has been in force since 6 January 2010. Responding the inadequacy of its regulatory predecessor, the Regulation was issued by the Government of Indonesia (“GOI”) to facilitate the implementation of Articles 177, 183(2), 194, 186(2), 196, 206(2) of the Indonesian Law No. 17 of 2008 regarding Shipping.

The Regulation contains 142 Articles which generally deals with the Shipping Navigation Support Facilities (Sarana Bantu Navigasi Pelayaran – “SBNP”), shipping telecommunication, meteorology services, water ways, water infrastructure and installations, dredging and reclamation, guidance, ship skeletons, salvage and underwater activities, navigation information systems, and human resources in the navigation field.

The Regulation sets out obligations for the GOI, in this case represented by the Department of Transportation with regards to navigation matters, including: establishing SBNP, setting out water-ways, provision of ship guidance and meteorology services, and coordinating shipping telecommunication. The Regulation does however allow the GOI to subcontract a few of its obligations to businesses (defined as either a state- or regionally-owned enterprise, or other legal entity).

One state obligation that may be absolved by a business entity is the operation of SBNP, defined in Article 2(1) as: a device or system (not placed in ships) designed or operated as a means to increase the safety and efficiency of ship navigation and / or ship traffic. As contained in Articles 22-24, this includes, among other things, watch towers, Global Positioning Systems (GPS), radio and radar beacons, and surveillance radar. The obligations befallen to SBNP operators include: maintenance; guaranteeing quality of operations, and; regular reporting to the Minister of Transportation with regards to operation of said SBNP.

SBNP operations are defined by 5 elements: (1) planning; (2) arranging the service provision; (3) operation; (4) maintenance, and; (5) supervision.

Businesses may not provide services otherwise obligated of the state without obtaining and maintaining a license to do so from the Department of Transportation. In order to acquire the license, businesses must satisfy a series of requirements set out by Article 25, and must obtain a series of administrative and technical supporting documents set out by Article 32(2,3).

Failure of businesses to comply with any single provision of the regulation could result in a combination of warnings, suspension of licenses, or license revocation.

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