As complied with the cabotage principle regulated in Article 8 of the Law No.17/2008 on Shipping, a foreign ship (non-Indonesian flagged ship and not being registered in Indonesia) is prohibited to operate and take passengers and/or logistics within Indonesian waters.  However exception to such principle is available for certain activities as regulated under the Minister of Transportation Regulation No. PM 100/2016 and No. PM 115/2017.  

Based on the regulations, subject to certain conditions and requirements, the use of foreign ship is permitted, among others (a) if the use of foreign ship only for oil and gas surveys, drilling, off-shore construction, offshore supporting operation, dredging, salvage and underwater works activities; (b) a prior permit from the Ministry of Transportation has been obtained (which is only valid for 1 year at the longest with possibility to be extended); and  (c) cooperation with an Indonesian Shipping Company (owns shipping business license/ “SIUPAL”) has been established, among others to apply for the prior permit and to operate such foreign ship in Indonesian waters.

And under PM 115/2017, certain types of a foreign ship are still permitted to be used/operated in Indonesian waters until the end of December 2018, as follows: (i) Jack up rig/jack up barge/self elevating drilling unit; (ii) Semi submersible rig; and (iii) Deep water drill ship.

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