Explanation of the Sea Transportation Company Business Permit (SIUPAL) according to the laws and regulations in force in Indonesia

SIUPAL or Sea Transportation Company Business Permit which is a license that will be given to shipping companies that are included in the OSS of the Transportation Sector in the marine sector. Shipping companies or sea transportation companies are required to have a SIUPAL. The SIUPAL acquisition process can be processed online through the OSS system.

What is the process to get SIUPAL?

As stipulated in the Regulation of the Minister of Transportation of the Republic of Indonesia Number PM 89 of 2018 concerning Norms, Standards, Procedures, and Criteria for Electronically Integrated Business Licensing for the Transportation Sector in the Sea ("PM 89/2018"), the following is the general process for obtaining SIUPAL :

1. The applicant must first obtain the NIB through the OSS system. After obtaining the NIB from the OSS system, the applicant will also get a SIUPAL which will not be effective until the applicant has fulfilled all the required commitments stated therein;
2. Following the above process, the applicant must also submit a SIUPAL application to the Marine Transport Traffic Management Information System (Sistem Manajemen Informasi Marine Traffic Management or "SIMLALA") and fulfill administrative and technical requirements (i.e. ship registration certificate) for review and inspection by officers concerned. According to the regulator, the process of fulfilling the requirements must take 20 (twenty) days;
3. Furthermore, the applicant is required to pay Non-Tax State Revenue (PNBP) of IDR 2,000,000 (two million Rupiah) through the SIMLALA online system;
4. The Approval Letter will be sent automatically through the OSS system to implement SIUPAL.
5. The SIUPAL Approval Letter will be printed at the Directorate General of Sea Communications of the Ministry of Transportation of the Republic of Indonesia through the SIMLALA application as the basis for issuing SIUPAL;
6. The applicant can then visit the Ministry to obtain SIUPAL Approval which provides proof of PNBP payment;
7. The applicant must then submit a report/notification of the permit issued to the OSS Institution; and
8. The applicant will then be able to retrieve the effective SIUPAL from the OSS system.

SIUPAL will be given directly when the applicant obtains NIB through the OSS system, however SIUPAL will not be effective yet. As stipulated in the regulations, the applicant is given a period of 20 (twenty) days to fulfill the requirements, including a certificate of measurement and ship procurement to obtain SIUPAL.

Prior to the enactment of PM 89/2018, as explained in Ministerial Regulation No. PM 93 of 2013 concerning Management and Business of Sea Transportation as last amended by Ministerial Regulation No. PM 24 of 2017 concerning Revocation of Capital Ownership Requirements for Sea Transportation, Ship Bodies, Cargo Handling Companies and Port Businesses ("PM 93/2013"), SIUPAL registration is carried out by submitting an application for registration and the relevant administrative and technical documents, such as a deed the original registration of the ship, to the Ministry. PM 93/2013 is currently still in effect, because PM 89/2018 does not completely revoke PM 93/2013. The SIUPAL registration method through the SIMLALA system as referred to in PM 89/2018 is the currently relevant registration method and applicants will be able to obtain SIUPAL from the Ministry for fulfilling the commitments and requirements for SIUPAL registration.

The brief description above is a general description of SIUPAL. If you are interested in knowing more about the issuance of SIUPAL, we Suria Nataadmadja & Associates Law Firm can help you.

Suria Nataadmadja & Associates Law Firm

Advocates & Legal Consultants