Law of the Republic of Indonesia No. 17/2008 on Shipping

lA SHIPPING (law of Republic of Indonesia No. 17 Year 2008 dated May 7, 2008) WTIHTHE BlESSING OFTHE ONE AND ONLY GOD THE PRESIDENTOFREPUBUC OFINDONESIA, Considering: a. that the UnitaryState of the Republic ofIndonesia isan ardlipelagocharacterized bycross-roads unitedbyvery wide waters with borders, rights and obligations stipu Iated by law; b. that in the effort to achievenational objectives based on Pancasila and the 1945 Constitutiont to realize the Archipelago COncept, andto consolidate national resil­ ience. a NationalTransportation System is required to supporteconomic growth, development of the regions, and to strengthen the sovereigntyof the State; c. that shipping consistilig of transportation on watert harbor-affairs, shipping safety and security, and rna­ nne environment protection, constitute a part of the national transportation system which must be devel­ oped asof its potentialsand roleto realize an effective and effident transportation system, and to assist the realization ofa consolidated and dynamicnationaldis­ tribution system; d. that the developmentof national and international stra­ tegic environmentdemandsthe performanceof ship­ ping COl {ormingto thedevelopmentof&:ience andtech­ noIogy;participation of the privatesectorand business competition, regional autonomy,andthe acrountability Business News 7690/7-18~2008 of the performersof the State, by prioritizingshipping safety and security for the national interest; e. that Law No. 21 year 1992 concerning shipping is no more inconformancewith reqUirements of the perfor~ manceof present, and therefore should be replaced bv a new Law; f. that"based on the considerations referredto in lettersa thru e, it is necessary to form a Lawon Shipping. In view of: Article 5 sub-article (1), Article 25A, and Article 33of the 1945Constitutionof the RepubUcof Indonesia) Througha Joint Agreement, THE HOUSE OFREPRESENTATIVES OF TI-lE REpUBUC OFINOONESIA And THE PRESIDENT OFTHE REPUBliC OF INOONESIA DECIDE; To stipulate: LAW ONSHIPPING OiAPTERI GENERAl PROVISIONS Article 1 In this Law, what is meant by: 1. shipping . 1. shipping is a system unit consisting of water transpor­ tatlon,harbor-effairs, safetyand security, andmarine environmentprotection • 2. Indonesian waters IS theIndonesian terrltol1al seas with itsarchipelagic watersandinlandwaters. 3. Water transportation is an activity to transport and/or remove passengers and goods byusingships. 4. Special sea Transportation is a transportatiOn activity to serve the interests of own-business to support itS main business. 5. People Shipping Sea Transportation is the people's business traditional in natureand havingits ownchar­ acteristicsto carry out water transportation by using Indonesian fJag-<:anier saBing ships.. motor sailing ships and/orsimple motorships withcertain tonnages. 6. Route isthe routeorlaneof transportation aetMty from one port to another. 7. General agent is a national sea transportcompany or national companies speciallyestablished to carry out shippingagency business, appointed byoverseas sea transportation companies to manage the intereStof its ships while in Indonesia. 8. Pioneer Shipping aretransportation services on water at routes stipulatedby theGovernmentto serveareas or regions notyetor not served by watertransporta­ tion because it stillcannot yieldcommercial benefits, 9. Reeted ServiceBusinesses arebusiness activities flay­ inga nature of expediting activities process in the field ofshipping. 10. Multi-mode Transportation is the transportation of goods usingat least two (2) different transportation modes based on one (1) contract using multimode Business News 7690/7-18-2008 ZA documentsfrom the placeof receiving the goods by multimodetransportation operatorsto a placedeter­ mined for the delivery of suchgoods. 11. Main business Is the type of business stated In the busi­ ness permit letter. 12. Ship mortgage is material mortgage right on a regis­ teredshipto guaranteecertain debts providing a pri­ oritized position to the creditor to a certain creditor on another creditor. 13. Prioritized Shipping Debtisa claimwhich mustbe firstly settled from the resultof the execution of theship than the claim of holderof shipmortgage daim. 14. Harbor-affairs is everything related with the perfor­ manceof port functions to support the smoothness, security and orderly traffic flow of ships, passengers andjorgoods, sailing safety andsecurity, place of trans­ fer of intra and/or inter mode and to push the national andregional economy by still observing regional spa­ tiallayout 15. National Harbor..:affairs Order is a port system con­ taining the role, functions, types,port hierarchYI Na­ tional Port: MainPlan, port locations,and the integra­ tion of intra and inter modes, aswell asthe integra­ tion withothersectors. 16. Port;sa place consists of land and/orwaterwith cer­ tain borders as a plaCe for governmentaetMties and exploittltion activities used as dock for ships, embar­ kationjdlsembatkation of passengersl and/or loading and/or unloadingofgoods, in the form of termmal or to harbor shipsequipped with safety and security fa­ cilities and port support activities, and as a pface of transfer intra andinter modetransportation. 17. Main '" .. 17. Maln harboris the port where-inits primaryfunction is to serve domestic and international sea transportation activities, transferof loadingof domestic: and intema­ tiotlal SAa tratlsportatil')O ln large volume, and as port of origin/destination of passengers and/orgoods, and feny transportation withinter-province service cover­ age. 18. COllecting port is a portwhere-in itsprimary function is InservenatlonaJ seatransportation actiVities, trans­ fer of loading of national sea transportation in me­ diumvolume, and as port of origin/destination of pas­ sengers and/or goOds, and feny transportation with inter-province service coverage. 19. Feeder port is a portwhere-in Its primary functionis to serve national sea transportation activities, transfer of loading of nationalsea transportation in limitedvol­ ume,and as portof origin/destinatiOn of passengers and/orgoods, and feny transportation with inter-prov­ inceservke coverage. 20. Tenninal is a port facilities consisting of anchorage pooland whereships dockor toWed,collection place, waiting andembarkingJdlsembar1<ing place fOr passen­ gers and/or loading/unloading of goods. 21. Special terminal Is a terminalloc:ated outskle of the Work EnvironmentAreaandInterestEnvironmentArea orthe port:constituting a part of the nearest port to serve own-interest in accordance with itsmain busi­ ness. 22. Ternfinalforown-interest is a tenninallocated within the WorkEnvironment Area andInterest Environment Area Oftheportconstituting apart of the nearest port to serve own-interest in accordance with its mainbusi­ ness. Business News 7690f7-18-2000 3A 23. Work EnviranmentArea is the water and land areas at a port or special terminal used directly for port activi­ ties. 24. Interest Environment Area is the wate~ around the Work Environment Area of the port waters used to ensure shipping safety. 25. Port MainPlan is thearrangementof port space in the form of aUobnent of plan on land and water in Work EnvironmentArea andInterest Environment Areaof a port. 26, PortAuthority is a government; agency in a portas the authority to perform the functionsof regulating,COn­ trol, and supervision of port affairs activities exploited commercially. 27. PortPerfonnerUnit is a governmentagencyin a POrt as the authority to perform functions of regulating, control, and supervision of part affairs activities,and to provide services on port affairs for ports not vet exploited commercially. 28. Port Business Entity is a business entity where-in its business activities are particularly in the field of ex­ ploitinga terminal andother portfacilities. 29. Port pool is the waters in front of a dod usedfor op­ eration purposes for docking and ship movements. 30. Space layoutis theform ofspacestructureand space pattern. 31. Spatial arrangement is a planningprocess system on the layout, space utilization, andcontrol of spaceutili­ zation. 32. Shipping safetyanct'seeurity isa condition meeting the requirements onsafetyandsecurityaspects concern­ ing transportation on land, port affairs and marine enVironment. J3.....Ship •.•••• 33. Ship worthiness is thecondition of a shipmeeting the requirements on shipls safety, prevention of pollution ofwaters by ship~ manningl loading line, loading, pros­ perity d crew, health of passengers, legal status of ship,management of safetyand prevention of pollu­ tion from ship, andthe management of ship'ssecuritY to sail incertain waters. 34. Ship's safety is the condition of a ship meeting the requirements on material,construction, installation, machinery and electricity, stability,composition, and ancillaries including rescue equipment andradio, ship's electronics, provedwith certificates foJlowing checks andtests. 35. Oassification Body isa shipdassificationagency per­ forming the regulatingcLship'sconstruction strength andmadlineryl qualityassurance ofmarinematerial, supervision ofbuilding, maintenance, and renovation of shipinaccordance with dassification regulations. 36. Shipis a water vehicle with certainfonns and types, polNered by windenergy, mechanical energy, andother energies, towed or tugged, included asdynamic-sup­ port power vehicle, sub-surraee vehicle, and float means andnon-removable floatingbuilding. 37. War-ships areshipsd the Indonesian National Armed Forces stipulated in accordance with provisions of statutory regulations. 38. State ships are state-owned ships used by certain Govemmentagendesprovided withfunctions and au­ thority inaccordance with pl'Q\lisions of statutory regu­ lationsfor the enforcement of lawandother govern­ mentalduties. 39. Fo1eJgn ships areshipscarryingflags other than the Indonesian flag. Business News7690/7-16-2008 4A 40. Ship crewarepeople working or aSSigned on boardby the ship'sowneror opercJtDr tv petform duties on board in aa:ordance with hisposition statedinthecertificate book. 41. Captain isoneofthe ship'screw who is the top leac\er in a ship andhascertain authorityand responsibility In accordance withprovisions of statutory regulations. 42. Sailorsare ship's crew other than thecaptain. 43. NaVigation is everything related with Aid Means for Shipping Navigation, Shipping Telecommunication, hydrograph andmeteorology, lanes and Iane-cross­ lngs,dredging and reclamation, guiding,handlingof shipframel salvageand underwater WOI1cs forthesake of ship safety. 44. NaVigate is a process to direct Ship movement from onepoint to anothersafely and smoothly aswellasto avoid dangers and/orshipping obstades. 45. Shipping lanes are waters which from the aspect of depth, Width and free from other obstacles to ship­ ping, aredeemed to be safeand secure to be sailed through. 46. Aid MeallS for Shipping Navigation areequipment or systems outsideof a ship, designed and operated to improve the safety and effICiency of ship navigation alld{or shiptraffic. 47. Shipping Telecommunication is special telecommuni­ cationfor the purposeof shipping servicein the form of anytransmission, sendingor receiptof any kind of syi'nbol~ image~ voiceand information in anyform by cable,optic, radio, or other electromagnetic system in moving shipping selVic:e being a partof shipping safety. 48. Guiding isscoutactMtiesin assisting, providing advices and information to the Captain concerning important localwater condition so that shipping navigation can be performed safely, orderly,andsmoothlyfor the sake of the safety of ship andthe environment. 49. Scout-Obligation Water isa water regionwhichdueto the conditionofthe waters, obligatesgUiding to Ships salling through it. SO. Scoutis a sailor having the expertise in nautical fields havingmet requirementsto executeship guiding. 51. Underwaterworks are worksrelated with installations, constructions, or ship,performed underwateror works underthe water having special nature, i.e. the useof underwater equipmentoperated fram water surface, 52. Dredging iswork to changethe form of the waterbed to achieve the desired depth and width or to take waterbed material to be used for certain purposes. 53. Reclamation isa work on piling-up in waters or coasts to change the coastlineand/or water depth contour. 54. Ship frame is any ship drowned or aground or cast ashoreand hadbeenabandoned. 55. Salvage is work to provide aid to a ship and/or its load encounterlnq an accidentor is in danger condition in waters, induding bringing upshipsframe or underwa­ ter obstacles or other things. 56. Harbor Master is a Governmentofficial in a port com­ missioned by the Minister and haVing the highest au­ thority to carry out and perform supervision on the fulfillment of provisions of statutory regulationsto en­ sureshipping safetyandsecurity. 57. Marine Environment Protection is any effort to prevent and to tacklewater environment pollution originating from activities related with shipping. Business News7690/7-18-2008 SA 58. Shipping Court is a panel of experts under and re­ sponsible directly to the Minister havlnq the duty to makefoflow~up investigationson ship accidents. 59. Sea and Coast Guardisan institution performingfunc­ tions of guarding and enforcing statutory regulations at seaand coastsestablishedand responsible to the President andtechnically operational performed by the f'liinister. 60. Business entities are State owned business entities, Region-owned business entities, or Indonesian bust­ ness entities particularly established for shipping. 61. AnyPerson are individualsor corporations. 62. CentralGovernment, hereinafter referred to as Gov­ ernment, is the President ofthe Republic of Indonesia, holdingthe authority of the Government of the Repub­ licof Indonesiaasreferred to ln the 1945 Constitution of the Republic of Indonesia. 63, Regional Government is the Governor,Regent/Mayor andareaapparatus asRegional Government Performer elements. 64. Ministeris theMinisterhavingthe dutiesand responsi­ bility in the area of shipping. CHAPTER II PRINOPlES AND OBJECTIVES Article 2 Shipping is performedbased on: a. principle of benefit; b. principleor joint enterprise and familiarity; c. principleof healthy competition; d. principleofjustice and equality without discrimination; ~rinciple , .... e. principleof balance, harmonyandconformity; f. principleof public interest; g. principle of synchronization; h. principleof rule of law; l, principle of independence; I, principleof livingenvironmentvision; k. principle of State sovereignty;and I. principle of natiOnality. Artide3 Shipping is performedwith the objectives: a. toexpeditethemovementof peopleand/or goods thru water by prioritizing and protecting transportationon water in the context of expediting national economy actMties; b. todevelop maritimespllitj c. to support State sovereignty; d. to createa competitivepower by developing national water transportationindustry; e. to support, mobilize, and motivate the achievement of nationaldevelopment objectives; f. tostrengthen nation unity and integrity in the frame­ work of the realization of the Archipelago Concept g. toenhance nationalresilience. CHAPTER III LAW APPUCABIUTY SCOPE Article 4 'This law is applicable for. a. All transportation activities on water, harbor-affairs, safety and security, and marine environment protec­ tion in Indonesian waters; Business News7690{7-18-2008 6A b. All foreign shipssailing in Indonesian waters;and c. All Indonesia flag-carriers outside of Indonesian wa­ ters. CHAPTERN DEVELOPMENT ArticleS (1) Shipping is controlled by the State, and Its develop­ ment is performedby the Government. (2) Thedevelopmentof shipping referred to insub-article (I) covers: a. regulating;' b. control; and c. supervision. (3) The regulating referred to in sub-article (2) letter a covers the stipulation of general and technical poli­ cies,amongothersthe determinationof norms,stan­ dards,guidance, criteria, planning, andprocedure in­ cluding safetyandsecurityrequirements andpermits. (4) Thecontrol referred to in sub-article(2) letter b cov­ ers the provision of directives, nurturance, training, permitting, certification andtechnical assistance in the areaof developmentand operations. (5) The supervision referred to in sub-article (2) letter c covers supervision activitieson the developmentand operations 50 asto remain in accordance with statu­ tory, regulaUons, including taking corrective actions and lawenforcement. (6) The shipping nurturancereferred to in sub-artlde (2) is performed by obserVing all asoeets of the publiclife and is oriented to: a, expedite .. , a, expedite the flow of massmovements of passen­ gers and goods thru wat~r saf2ly, ~ur~ly, rap­ idly; smoothly, orderly, conveniently andeffectively, at costs within the reach of the people's purchase ability; b. improve tf1~ performance of activities of water trarsportaton, harbJr·affairs, safetyandsecurity, and marine environment protection, as part of the overaJl transportationmodes integrated by utilizing thedevelopmentof scienceand technology; c. Develop the capability of a sturdy national trans­ portation armada on waterand supported bya re­ liable shlpplnq industry 50 as to be able to meet transportation requirements, bothdomestically as well as from and to overseas; d. Develop transportation activity business in national waters that is reliable, capable of competing, and supported byfacilities to obtain financial aid,taxa­ tion dispensation, and a sturdy shipping industry, soasto be able tobeindependent andto compete. e. Improve the capability and role of ports and the safety andsecurityof shipping by ensuring theavail­ ability 0 shipping Janes, harbor pool,and adequate shipping Navigational Aid Means in the contextof supporting watertransportation. f. RealiZe human resources Withmaritime spirit, pro­ fessionalism, and capable of following the devel­ opment ofshIpping performance re.juir~ nelll:5; i:Ir Id g. Meetmarine environmentprotection thrueffortsIn the prevention and tackling of pollution Originating from transportation activities in the waters, ports, aswellas safetyand security. Business News 7690/7-18-2.006 7A (7) Theregional govemments perform shipping nurturance referred to in sub-artide (6) in accordance with its authoritY. CHAPTER V WATER TRANSPORTATION Part One Article6 Types of water transportationconsist of: a. Sea transportation; b. River and laketransportation; and c. Ferry trensportetlon, PartTwo Paragraph 1 Types of sea transportation Artide7 Sea transportation consists of: a. Domestic seatransportation; b. Overseas seatransportation; c. Special sea transportation; and d. People's shipping sea transportation. Paragraph 2 Domestic sea transportation Article 0 (1) Activities ofdomestic seatransportation areperformed by national sea transportation companies. using Indo­ nesian flag-carrier shipsand manned by Indoneslan citiZens. (2) Foreign •.•••. (2) Foreign shipsareprohibitedto cany passengers and/ or goods between islands and between ports within Indonesian territorial waters. Article 9 (1) Activities of domesticsea transportation is complied andcarried out integrated,both intra-mode aswell as inter-modeconstitutinga unity in the National Trans­ portationSystem. (2) Activities of the domesticsea transportation referred to in sub-article {1}are performed with fixed regular route (liner) and may be romplemented with non-fIXed irregularroute (tramper). (3) Activities of domestic seatransportationserving fixed regularroutesare performed within a route net. (4) Activities of the fixed regular route of domestic sea transportation iscompiled bypayingdue observance on: a. development of centers of industries, trade, and tourism; b. development of regions and/or areas; c. spatiallayoutgeneralplanning; d. integrityof transportationintra / intermodes; and e. realization of the Archipelago Concept. (5) The compjJation of the fixed regular route net referred to insub-artide(4) is performed jointly bythe Govern­ ment, regional governments, and association of na­ tional sea transportation companies by paying due cbservaroe oninputsfromtheassociation of seatrans­ portationusers. (6) Thefixed regular routenet referred to in sub-article (5) is stipulatedbythe Minister. Business News 7690/7-18-2008 BA (7) Theoperations of shipsin the fixedregularroutesre­ ferred to in sub-article (5) is performed by the na­ tional seatransportationby considering: a. sea-worthiness of ships; b. Using Indonesian f1ag-earriers and manned by In­ donesian citizens; c. Balance between demand and the availability of space; d. Condition of visitedport lanesandfacilities;and e. Type and tonnage of ships in accordance with re­ quirements. (8) The operations of ships in the Irregular non-fixed route referredto in sub-article(2) is performed by national sea transportation companies and isobligedto be re­ ported to the GQ\Iemment, Article 10 Furtherprovlslons ondomestic sea transportation activities shall be regulated with Government Regulations. Paragraph 3 Overseas seaTransportation Article11 (1) Sea transportation activitiesfrom andto overseas are performed bynationalseatransportation companies and/orforeignsea transportation companies using In­ donesian f1ag-carrier shipsand/or foreignships. (2) Thesea transportation actiVity referredto in sub-ar­ ticle (1) is performed so that the national sea trans­ portation companies get a logical passengers/cargo portion inaccordance with statutoryregUlations. (3) sea ..... (3) sea transportationactivities to and from overseas re­ ferred to In sub-artlde (1) including border-crossing seatransportation isperformed with fixedregular route and inegular non-flXed routes. (4) Foreign sea transportation companies mayonly carry out sea transportation activities to and from Indone­ sianportsopened for foreign trade, and areobligedto appoint nationalcompanies asgeneral agents. (5) Foreign sea transportation companies carrying out sea transportation activities to and from Indonesia ports opened forforeign trade continuously shallappoint its representatives in Indonesia. Article 12 Further provisions on foreign sea transportation activities, generalagentl and representative of foreignsea transportation shall beregulated witha Government Regu­ lation. Paragraph .... Special seaTransportation Article 13 (1) Special sea transportationactiVities are perfonnedby business entitles to support its main business for its own interestby using Indonesian flag--carrier ships meeting requirements on ships' sea-worthiness and manned byIndonesian citizens. (2) The special sea transportation activities referred to in sub-artide (1) are performed based on operations pennit fromthe Government. Business News 7690/7-18-2008 9A (3) The special sea transportation activities referredto in sub-artlde(1) are petforrnedby usIng lndoneslanftag­ carriershipsmeetingrequirements on ships' sea-wor­ thiness wi~h ships' conditions and requirements con­ forming to the type of its mainbusiness activity. (4) The special sea transportation activities referred to in sub-article (l)are prohibited to carry cargo or goods of other parties and/or carrying general cargo or goods exceptin certain condittons based on permit from the Government. (5) The certain conditions referred to in sUb-artic:1e (4) are in the form of: a. unavailabilityof ships;and b. transportation companies capable of serving the de­ mandfor such transportationservice in whole or in part is not yet available. (6) Performers offureign seatransportation activitiescar­ rying out special seatransportation activitiesto Indo­ nesianports opened to foreign trade must appoint a national seatransportation companyor asperformer of thespecial seatransportation activitiesasits gen­ eralagent. (7) Performers of special sea transportation activities may otlly beagents for ships performing the sametype of activities as those of its main business. Artide 14 Further provisions on special sea transportation activities shall be regulated with a Government Regula­ tiOn. Paragraph 5 .... , • lOA Paragraph 5 People's Shipping sea Transportation Article 15 (1) People's Shipping SeaTransportation activities are business of thecommunity that are traditional in natureand being a part of the water transportationbusiness hasan important roleandparticularcharacteristiCs. (2) People's Shipping Sea Transportation activitiesareperformed by individual Indonesiancitizens or business entities using Indonesian flag-carriershipsmeetingrequirements onships' sea-worthiness and manned byIndonesian citi­ zens. Article16 (1) Nurturing of People's Shipping Sea Transportation is performed so that the business life and important role of people's Shipping Sea Transportation canbe maintained as part of the potentials of the national sea transportation constituting a unityof the National Transportation System. (2) The development of the People's Shipping Sea Transportation is performed to: a. improve services to the hinterlandand/orwatershaving lanes with limiteddepths including riversandlakes; b. improve its ability as <!I field of business on national seatransportation end field of work; and C. improve thecompetence of humanresources andentrepreneurship in the field of nationalsea transportbusiness. (3) The armada of the People's Shipping SeaTransportation may be operated domestically and border crossing, both for fiXed regularroute aswell as irregular non-fixed routes. Article 17 Further provisions on People's Shipping sea Transportation activities shall be regulated with a Government Regulation. PartThree ......... (Tobecontinued) Business News 7690/7-18-2.008 t4A SHIPPING (Law of Republic of Indonesia No. 17 Year 2008 dated May7, 20(8) [Continued from Business News No. 7690 pages lA-lOA] PaJtThree Riverand Lake Transportation Article 18 (1) Ac.tivities of river and laketransportation domestically is performed by individual Indonesian dtizensor bust ness entitlesuSing Indonesian f1ag<arrier ships meet­ ingrequirements onships' sea-worthiness andmanned byIndonesian dtizens. (2) Activities of riverandlaKe: transportation betWeen the Republic ofIndonesiaand neighboring country isper­ formed based on agreements between theRepublic of Indonesia and the neighboring countryconcemed. (3) Activitiesof riverandlake transportation between the two countries referred to in SUb-Article (2) mayonly beperformed by shipsflying Indonesian flag and/or flyingthe nag of the countryconcerned. (4) Activitiesof riverand lake transportation shall becom­ piled andperfumed integrated by observing the intra modeaswellasthe inter-modeconstituting a unity in theNational Transportation System. (5) ActiVities of riverand laketransportatio11 maybe per­ formedwith fix.ed regUlar route or non-fixed irregUlar route. (6) Activities of river andlake transportationare prohib­ ited to be carried out in the seas exceptafter receiving a permitfrom the harbonnasterby consistently fulfill ing requirements on ships' see-worthmess. Business News 7691-7692j7-23-2008 Article 19 (1) In order to support its main business, it isentitled to perform activities of river and laketransportation for own interests. (2) Theriverand laketransportationactivitlesreferredto in sub-Article (1) shall be performed by individual in­ donesian citizens or business entities with the Government's permit. Artide 20 Further provisions on river and lake transporta­ tion activities shallbe regulatedwitha Government Regu­ lation. Part Four Ferry Transportation Article 21 (1) Activitiesof ferry transportation domestically is per­ formed bybusiness entitiesusing Indonesianflag-car­ rier shipsmeeting requirements on ships' sea-worthi­ nessandmanned by Indonesiandtizen crews. (2) Activities of feny transportations between the Repub­ lic of Indonesiaand the neighboring country shallbe performed based onagreementsbetween the Repub­ lic of Indonesiaandneighboringcountryconcerned. (3) Activities a ferry transportations between thebNocoun­ tries referred to in sub-ArOde (2) may only be per­ formed by ships flying Indonesian flag and/or flying the flag of the countryconcerned. Artjc!e 22 ••••. 15A Artide22 (l) Feny bansportation is a transportation functioning as bridgeoonnecting road netsor railway nets separated by waters, to transport passengers and vehicles with its loads. (2) The stipulation Ofthe site Offeny transportation re­ ferred to in sub-Article(1) is made by taking into con­ sideration: a. deYeIopmentof roadnetsorrailwaynets separated bywatersi b. funt"fion asbridge~ c. communication between- two ports, between a port" andtetminalsj·andbetweentwofenytenninalswith rertaln range; d. not to carrygoods unloaded from its carrier V~ hide; e. Regional Space Layout~n; and 1. Routenet Ofsea transportation in order to maxi· mize the integrity of intra-mode and inter-mode mmsportation. (3) Ferry transportation isperfonned usingfixed regular routes. Article23 Further provisions on ferry transportation activi· ties:shaltberegulated wittra Government Regulation; Part Ave Transportation in Watersof :AreasStill Under-developed andlcr Remote. Article. 24 (1) Transportation inwatersorerees still under-developed c:lI1d/or remotemustbeperformed by the Government and/or the regional governments. Business News 7691-7692/7-23-2008 (2) Transportationin waters referred to in sub-Article(1) is performed by pioneer shipping and on assignment. (3) The pioneershipping referred to in sub-Article (2) is performed by usingfurids provided by the Government and/or Regional GoVemments. (4) The assignmentreferred to in sub-Article{2} isgiven to national sea transportation companies receiving rompensations from theSovernrnentand/or Regional Governments inthe.amountasot the difference·of pro­ duction oostsand thetariffSlipulated -by the Govern­ ment and/orRegional Govemments as public service obligations. (5) Tl1e piOneer shippmg and on assignment shaHbeper­ formed integrated with othersectors based on region development approach, (6) Transportation inwaters of areasstiU under-developed and/or remote 5hallbeevaluatedby the Government and/or Regional Governments everyyear. Article 25 Thepioneershippingreferred to In Artide 24may be performed thru long-term contractswith water trans­ portation companies using Indonesian f1ag-carr~r ships meeting requirements. on ships' sea-worthiness and manned by Indonesian citizens, Article 26 Furtherprovisions on pioneershipping andon as­ signmenttransportation in watersof areasstiU under-de­ veloped and/or remote shall be regulatedwith a Govern­ mentRegulation. PartSix ..... 16A Part Six Transportlltion Permits Altide27 In order to performwater transportation actM­ ties, IndMduaI IJldonestan c:Iizens orbusinessentitles must possessa business permit. Artide28 (1) 5eB ThMiI$pJi tfIItkJI , BusinIssPermllsiSSUedby the: a. Regent/Mlrvor c:onaemed, for businessentities do­ ndedintheJf!I;1!fq/c!l.yamope. lQp:Jrt-eross­ Jng wftf*t theregterq/cJJI; b. Gowmor~ theprovincearncemed, forbusiness enJdeS doIllidfed in theprovintearea, andoperat­ Ing pcrt-aossi lQIrter.-regency/dtywlhin the prov Incearea; or c. MinIster, for business entities cany g out. port.­ CI'QSYlg aetMIJes betv.eerlprovincesandintema­ tIanaIlJClf'bi.. ~)Business PennI for Peopae's Shipping sea Transpor­ tation Isissued tw: a. ~QJfJQ!lned torkJdMdual Jndonei'm dU1enS ar business entities domiclIed In the re­ ~/fSY andope iOil!Jport"Cl'OSSlng within the regerrcy/dt.yi or b. GtNernor d the JmIftnr:e mnteiiI iI!dfor ildMdua'l Indon e: 51 .r ddD!nsOf' biJsiness erdIes domiciled andOQeiatilg part-aO$5i'ig interreqnJ{(dttt wfthin the province area, inter-proVince ports, andinter­ national ports. {3} 8usJness PennJt for River and Lake Transportation is issuedby: tJ. Regent/Mayor for individuallndones\all citizens(}f businessentities inaccordaote withits domicile or b. Govemord the P10YlncecIJabrta Capital~ Area(or indfvfdual Indonesian citizens or buslnes5 entIl:Ies domiciled inJakarta C,apitaISpedaI Area. (4) Besides haYIlg to possessthe business perrm A!I'ern!ld to insub--.Artide (3). forriver andIlketranspJrtatlon. opetated sh)psmust possess lOtte permt issUed by the: a. RegertIMayorQJllcl!med fOr ships serving routes within the 'If!IJI!OOI/rAyi b. GcNernar rllhe pRJlIh::eOOlUli ned, fer shipsseN" ing inter regencyldti routes within the pn:wince area; c. MlnistCf', for ships~ beb«:en provinces and{ orbetween fXU'Ibies. (5) 6uSmeSs PennltforfenyTtaI'tSPlJI\ation \S'Is5ued bv: a. RegentfMayorconc:emed, in aa:orcIance with busi­ ness domicile; or b. GoYernOr rItheProvInce dJakarta Capital Special AreilI, forbusinessentIltescb.*Itd InlIIkiRI cap. talSpecIal Area. (6) BeSideS hcMngfDp05Se5Slhe businesspemI referred to InSUb-Artide (5), b' feny b......,.... OI*ated ships mustpossess shlpape;atkMlSapprM isSued by 1tlt: a, RegentJMayor concerned, tor shipsserving Inter­ port IOUtes withinthe reQeftCfldtV: b. Governor rlthe pt"Q\'IrKE wnamed, (or ships setV­ iog interregerq/drJf parts within the province area; c. Minister, for shiPS serving portsbetween provinces and/orbetweencountries. Mide29...... Artide29 (1) In orderto get the sea transportation business permit referredto in Article28 sub-Article (1}. business enti­ ties must posses ships flying IndoneSian flag with a tonnageofat least175GT(one hundredseventyfive Gross Tonnage). (2) IndiVidual Indonesian citizens or business entities are allowed to cooperate with foreignseatransportation companies or foreignbusiness entitiesorfore;gn citi­ zens in the form ofjoint ventureby establishing a sea transportation companies possessing at leastone(1) unit of shipflyingIndonesenflagwitha tonnageof at least5000 GT(fiVethoUsand Gro5STonnage) manned by Indonesian citizens.. Artide30 Furtherprovisions on theprOcedure andrequire­ ments of pennlts of transportation onwaters shall beregu. IatEd with aGovernment Regulation. PartSEwen service Business related withTransportation onWaters Article 31 (1) To expedite transportatlcn on watefS referred to in ArtIcle 6, business on related services is entitled to be carried out. {l} Thebuslness on re\ated servoesreferred to in sub­ ArtId~ (1) may be in thefurm of: a. Loading aoc! unloading of goods; b. Transoortation handUng services; c. Portwatertransportation; d. Rental of sea transportation equipment or equip­ mentof related services; BusineSS News 7691-7692/7-23-2008 17A e. Independent tally; f. Container depot; 9· ShIpmQnagemer.t~ h. Ship broker; i. Ship manning agency; ). Snipagency; and ship repair and maintenance. Article3Z (1) The serviee--l'elated business referred to in Artide 11 sub-Article (2) shall beperformed by business entities established particularlyforsuch purpose. (2) Besides the particularlyestablished business entities asmeantin 5ub-Artide(1), loading andunloading ac­ tivities may be performed by national sea transporta­ tioncompanieS but limitedwloading and unloading-of cargofor shipsit operates. (3) Besides the particularlyestablished business entities asmeantin stJbwArticle (1), port water transportation aetMties may be performed bY natiOnal seatranspor­ tation companies. (4) Tii'llyad:Mties whidl are not the independent tally re­ ferred to in Article 31 sub-Article (2) letter e maybe performedby,nationalseatransportation companies, loading and unloading companies, or transportation handUng set\'iCeS oornpanies limited to motainercargo­ doring, receMng/delivery, stuffing, andstrippingac­ tivitiesfor owninterests. Artide 33 Every business entitiesestablished particularly for service-related bUSiness referred to in Article 32suo-Ar­ tide (1) must possess business permits. Article34 ....• Artide 34 FlJrther provisionson the procedureand require­ ments of pennitsof service-related business transporta­ tiononwatersshallbereguJated witha Govemment Regu­ lation. PartEight Tariff ofTransportationandServices-Related Business Artide35 (1) Tariff of transportation on waters consistsof tariff of passengers andtariff of goods. (2) Tariff of economy class passengers is stipulated by the Government. (3) Tariff of non-economy classpassengers is stipulated by the transportation operator based on the level of services provided. (4) Tariff ofgoods is stipulam.d by the transportation ser­ vices llfO\'ider based onagreements betweenthetrans­ portalion services users alldtheprovider in acoordance with the typel structureahd categorystipulated by the Government. Article 36 Tariff of services-related business isstipulated by the providerof the related services based on agreements betw'een the related services users and the provlder in accordance with the type, structure and categorystipu­ lated bythe Government. Artide 37 F=urther provisions On the types, structures and categoriesof tariff of transportation and services-related Business News 7691-7692f7~23-2008 business shall be regulated with a GovernmentRegula­ tion. PartNine Obligation and Responsibility ofTransporter Paragraph 1 Obligation to Transport Article 38 (1) .Water transportationcompanies must transportpas­ sengers and/orgoods Particularlytra~n of post agreed uponin a transportation agreements. (2) The transportation agreementsreferred to in sub-Ar­ ticle(1) shallbe proved by passenger tickets andcargo documents. (3) In certaincondition, the Goverriment is authorized to ITK)bilize the national trade Reet. Article 39 Further provtsions on the obligation to transport shallberegulatedwith a GovernmentRegulation. Paragraph 2 Responsibility of Transporter Atticle40 (1) Water transportation companies areresponsible on the safetyandsecurity of passengers and/orgoods being transported. (2) Water transportation companies are responsible on ship'S cargo in accordance with the type andamount stated in cargo documents and/oragreed upon agree­ ments or contract. 8ttICle41.. ..... Artide41 (1) The responsibilities referred to in ArtiCle 40 may be caused asconsequence of the operations of ships, in the formof: ClI. death or Injury of passengers being transported; b. loss of or damages.1n goods being transported; c. delayof transportatiOn rJ passengers and/or goods. d. third partylosses {2} If the watertransportatkm companieS can provethat that the losses referred to in sub-Article (1) letters b, Cf and d is notdue to its fault, it can be relieved from its responsibility inpart or in whole. (3) Water transportation companies must insure «:s: re-­ sponsJbility asmeant Insub-Artk1e (1) andcarry out basic protectiOn insurance for generalpassengers in ao:nrdance with provisions of statutory regulations. Article4Z {I} Water transportation companies mustprovide special facilities and ease fO\" the disabled, pregnant 'Nomen, children belowfIVe (5) years old, sickperson, andse­ niorcitiZens. (2) Theprovisions oftne facilities andease referredto in sub-Artidel (1) shallnot bearanyadditional costs. Artlde43 i\lrther provlsions on the resopooslbi\ity of bans­ porters shallbe regulated with a Government Regulation. Paragraph 3 Transportation ofSpecial Goods andHazardous Goods Artide44 Business NeWs 7691-7692{7-23-2008 19A Thetransportationof special goods and hazard­ ous goodsmust be carriedout in accordance With provi­ sions ofstatutory regulations. Article45 (1) The speCial goods referredto in Article 44 may be in the form.of: a. logs; b. poured goods; c. rail; and d. livestock. (2) The hazardous goods referredto in Article 44 are in tlle form ot: a. liquids; b. solids; and c. gaseous (3) Thehazardous goodsreferred to in sUb-Artide (2) are classtfred as follows: a. exptosives; b. gases being compressed, liquefied, or dissolved underpressure; c. flammable liquids; d. flammable solids; e. oxidizing substanoes; f. toxic andinfectious substances; g. radioactive materials; h. corrosive substances; and i, misceUaneous dangerous substances. ArtIde46 Thetransportationof haZardous goods and spe­ cial goods referred to inArticle 44mustmeetthe foIfowing requirements: a. packing, •••• a. paddng, plIlng up, and storage in ports, loading and unloading handling, andpilingupandstorage whileon board; b. safety in accordance with regulations and standard, bothnational and international forshipsspecially trans­ porting hazardous goods; and C. provision of certain symbols in accordance with the transportedhazardous goods. ArtiCle 47 Owners, operators, and/or agents of sea trans­ portation companies transporting hazardous goods and special goodsmustsubmitnotifications to the Harbor-Mas­ ter before the shiptransporting the special goOOs and/or hazardous goodsarrivesat the port. Artide48 Port Business Entitiesand PortOperatorUnitsare obliged to prepare places for the storage or piling up of hazardous goOOs and special goods to ensure its safety and the smoothness of traffic flow of goods in the port, and shallbe responsible on the compilationof the system and procedure of handling hazardous goods and special goods. in the port. ArtiCle 49 Further provisionson the proceduretransporta­ tion of spedalgoodsand hazardous goodsshall be regu Business News1691-7692]7-23-2008 fated with a Government Regulation. Part Ten Multi-modeTransportation Article SO (I) Water transportation is a part of the multi-mode transportation performed by multi-mode transporta­ tion business entities. (2) ActivitieS atwatertransportation within themulti-mode transportation is earned out based on agreements performedbetweenprovidersofwater transportatkm services andmulti-modetransportation business enti­ ties and providersof other mode services. Article 51 (1) Multi-modetransportationshall be performed bybusi­ ness entities having received special permit to earry out multi-modetransportatfonfrom the Government. {2} Thebusiness entitiesreferred to insub-Artide(1) shall be liable from the receipt of goods until its deliveryto the goodsreceiver. ArtiCle 52 The perfonnanceof multi-modetransportationis executed based on one (1) document issued by the pro­ viderof multi-modetransportationservices. ArtiCle 53 .... 21A ArticleS3 (1) Theliabilities of the providerof multi-modetranspor­ tation services referredto in Article51sub-Article (2) cover losses of or damages to goods and delay of the delivery of goods. (2) Theliabilities referred to insub-Artide(1) maybe ex­ empted if the providerof the multi-modetransporta­ tion services canprovethat ft or its agentshadprop-­ erIy performed all actionsto preventsuch losses of or damages to the goods, as well as any delays of the delivery of goods. (3) Theliabilitiesof the providerof multi-mode-transpor­ tation services referred to in sub-Artide (1) is limited lnnature. Artide54 Providers of multi-mode transportation serviees mustinsure their liabilities. Article5S Furtherprovisions on multi-mode transportation shall be regulated with a Government Regulation. PartEleven Empowennent ofNational Water transportation Industry Article 56 Thedevelopment and procurement of national water transportation fleet is executedIn the context of Business Ne\Ns 7691-7692/7-23-2.008 empowering national watertransportation and toaugment the nationalship industry performed integratedwith the supportof all related sectors. Artide 57 (1) The empowermeht of national water transportation industryreferred to in Article 56is obliged to beexer­ dsed by the Government by; a. providing facilities on fundingand taxation; b. t"acffitating longlrerm partnesship rontrad between goods ownersand shipslIlWt1ers; and c. assuring the availabiNty orail fuel for wafer trans POI tatiofl. (2) Theaugmentation of the. national ship industryreferred to in Article 56 isobliged to be perfonned bytheGoY­ ernmentby: a. stipulating an integrated shipindustry zone; b. deVeloping centers Ofdesign, research anddevel­ opmentof natiOnal Shipindustryi c. developingshipSlanda~ and components by usingk:lcal contents asmuch aspossi~ andexer­ cisingtransferof technology; d. developing raw material industriesandshipcom­ ponents; e. provide incentives to watertransportation compa­ nies bUilding and/or repairing ships, domestically and/orprocuring ships fromoverseas; f. bUilding shipsin nationalshipdad<. lndustries if its procurement costs is borne on the State Income and Expenditure Budgetor Regianallncomeand Expenditure Budget; g/ build ••. ,. g. buildshipswhere itsfunding originatesfrom over­ seasby using local contents as much as possible andexercising transferoftechnology; h. maintaining and repairing ships in national ship ln­ dustrieswhere-in its costs are borne on the State Income and Expenditure Budget or Regional lnoome and Expenditure Budget Article 58 Further provisions·on the empowerment of na­ tional water transportation industry and national ship in­ dustry shallbe regulatedwith a GovernmentRegulation. PartTwelve Administrative Sanctions Article S9 (1) Any person violating the provisionsreferred to in Ar­ tide Bsub-Artide (2), Article 9 sub-Article(8), Article 28 sub-Article (4) or sub-Article(6), or Article33 shall be imposed of administrativesanctions in the form of: a. Warning; b. Admlnistrative fine; c. Freezing ofpermit or certificate; or d. Revocation of permitor certificate. 22A be imposed of administrativesanctions in the form of not to be provided with port-affairs services. (3) Furtherprovisions on the procedure of the impaslng of administrative sanctions referred to in sub-Article (1) shallbe regulatedwith a Government Regulation. CHAPTER VI MORTGAGE AND PRIORITIZED SHIPPING RECENABlES PartOne Mortgage Article 60 (1) Ships registered in list of Indonesian Shipsmay be used asguarantee on debtsby p&adng mortgage on theship. (2) The placementof mortgage on ship is perfonned by drawing up a mortgage deed by the Registration Offi­ dal andShipTransferofTIt1eRegistrar Where theship is registered and recorded in the Ship Registration MasterUst. (3) Foreach mortgage deed, one(1) DeedOfGross Mort­ gage shall be given to themortgage receiver. (2) Anyperson violating the provisions referred to inAr­ ticle 11sub-Article (4) orArticle 13sub-Article (6) shall Business Ne'J'(S 7691:7692/7-23.-2008 (4) The DeedofGross Mortgage referred to in sub-Article (3) holds the sameexecutorial power as a final court judgment. (5) In...... 23A (5) In the event that theDeed of Gross Mortg~ is lost, Replacement Deed of Gross Mortgage maybe issued based oncourt stipUlation. ArtidIll {I} Aship ~y bec:ha1Ved wtth more than one (1) mort­ gage. (2) The rating Qfthe respective mortgage shallbe deter­ mined according to the date and sequent number of theDeed of MoItgage. Artlde62 Assignment r:lmortgage bythe IOOItgage assignee to othermortgage assignee shallbeexecuted bydrawing upAssignmentof Mortgageby LandReglstratlonOffldals and Recorder of SIllpChange of TItleat the place where the ship 15 regjstered and recorded in the Master Listof Ship Registration. Article63 (1) cancellation of mortgagemayhe madebythe Regis­ tration OffICial and ShIp Transfer oflitle Registrar on a writtenrequest bythe mortgage assignee. (2) If the request referred to in sub-Artlde (3) is submit­ ted by the mortgageassignor, such(€Quest should be endosed with cancellation approval letter from the mortgage assignee. Artide64 Further provisions onthe procedure of mortgage placement shall be regulated with a Government Regula­ tion. PartTwo Prioritlled Shipping Receivables Article 65 (t) In theeventof claims ondebts guaranteed withship, the owner, the chartering patty, and operator of the shipshan prtorittze the payment0(thePrioritized Ship-' ping Reo;vable. (2) ThePrioritized ShippingReceivable referred to Insub­ Artide (1) isas follows: a. Forthe paymentOfwagesand otherpayments to theCaptain, Ship Crewandothersupporting crews of the shipwith regard to their assignments onthe ship, induding repatriation costsand social insur­ ance contributions payable; b. To paycondolence costs on deaths or to payme­ dicinal treatments onbody injuries, bot\\oo:urriflg on landandon the sea connected directly with tfte operations of theship; c. Forthe paymentofsalvage costs onthe ship; d. For harborcosts andothershipping lane costs as wellasscouting; and e.To .......... 241' e. To pay losses due to physical losses or damages caused by the operations of the shipother than losses or damages on cargo,containers and pas­ sengt'!rsgoods. transported on the ship. (3) Priorttized Shipping Receivables shallnot beborneon the ship to guarantee the daims referred to in, sub­ Artide (2) lettersband e If suchaction arosedue to : a. damagescaused bythe trcInsportation of oilorother hazardousandtoxicgoodsbysea; and b. radioactive substances or combination of radioac­ tive substances and toxic, explosive substances or hazardous substances from nuclearfuel, products or radioactive wastes. Article66 (1) Payment of the Prioritized Shipping Receivables re­ ferred to inArticle 65 shall be prioritized from the pay. ment of security, mortgage, and registered receiv­ ables. (2) Ship owner,the chartering party, the management, or the operator of the shipshallprioritize the paymentof costs arising otherthanfor the payment of the Priori­ tized Shipping Receivables as meant in A.rticle 65. (3) Thecosts referred to in sub-Artide (2) is in the form of: a. costsarising due to the lifting of shipsunk or run Business NeYlIS 7691-7692{7-23-2008 aground performed by the Government to ensure thesafety of Shipping or the protEction of maritime environment; and b. costs for the repairof shipbeing the right of docks (retentionright) if duringanenforced sale, the-shlp was being on the dockexisting under the taws of Indonesian. (4) Theshipping receivable stipulated in Article 65 hasa priority scale in accordance with its .order, unless the claim for shipsalvagecosts had beendemanded be­ fare the other claims,then the salvage cost becomes more prioritized than the other Prioritized Shipping Receivables. OiAPTERVU HARBOR AFFAIRS Part OnE! Orderof NationalHarborAffairs Article 67 (1) Orderof National Harbor-Affairs is realized in the con­ text of running a reliable porthavinga highcapability, to ensure efficiency, andhaving a globalcompetitive powerto supportthe national and regional develop­ ment based on the Archipelago concept. (2) Order of National Harbor-Affairs referred to in sub­ Artide(1) isa nation-wide harboraffairs system illus­ trating the planning of harbor affairs based on ec0­ nomicandgeographic zoning, and regional compere­ tiVe advantage, aswellasthe condition of the nature. (3) Order (3) Order of National Harbor-Affairs referred to in sub­ Artide (1) contains: a. Roles, functions, types andhierarchy of ports; b. National PortMaster Plan; and c. Port locations. Paragraph 2. Roles, Functions, TypesandHierarchy of Ports Artide68 Ports play the roleas: a. knotsin transportation nets in accordance with its hl erarchy; b. gate of economic actMties; c. placefor b'anster of transportation modes; d. support of industries and/or trade actIVities; e. place for the dlsbibution, production, and consolida­ tion of cargoor goods; and realization of the Archi­ pelago Concept andState sovereignty. Artide69 Ports functionas place of activitiesof : a. government; and b. e<pIoitation. ArtIde70 (1) Types of ports consistof: a. marineports; and b. river al1d lake ports. BuSiness NeW5lJ'691-7692/7Jf.3-2.008 2SA (2) Themarineport referredto in sub-Article (1) letter a havethe following hierarchy: a. Main port; b. collecting port; and c. feeder port. Paragraph 3 National Port Master Plan Artide71 (1) TheNational PortMaster Plan referred to inArticle67 sub-Article (3) letter b is a guic:lelinefor the stipulation of location, oonstruetion, operations, portdevelopment, and the compilation of PortMaster Plan. (2) National Port Master Plan shall 'becompiled by paying dueattentionon: a. National Territory Spatial layout Pian, Province Re­ gion Spatial layout Plan, Regency/City Area Spa­ tial LayOut Plan. b. RegioRaI potentialsand sodo-economic develop­ ment; C. Natural resources potentials;and d. De.elapmentd strategic envIronr1lent1 both national aswell as international. (3) National PortMaster Plan contains: a. national policyon ports; and b. plan on port locationand hierarchy. (4fThe ...... (4) The Minister stipulatesthe National Port Master Plan for a termof 20 (twenty) years. (5) The NationalPort Master Plan referred to in sub-Ar­ ticle (4) maybe reViewed oncein five (5) years. (6) In the eventof changes of sb'ategic environment con­ ditionsduetoplans stipulated with proviSiOns of statu­ tory regulations, the Nationa' PortMaster Plan maybe reviewed more than once In- five(5) years. Paragraph 4 Location of Ports Article72 (l) The use Ofcertain Iancl andwater areas-as the loca­ tion ofports isstipulated by theMinister inaccordance WIth the National PortMaster Plan. (2) The port locations referred to in sub-Artlde(l) shaft beaccompanied with PortMaster Plan aswell as the portwork EnVIrOnmentArea andInterestEnvIl'onment Area. Altide73 (1) Everyport must havea Port Master Pian. (2) ThePort Master Plan referred to Insub-ArtIde (1) shall be compiled by paying dueattention on: a. NatIOnal Territory SpatialLayoutPlan, BusinesS News 7691-7692/7-23-2008 26A b. Province Region Spatial Layout Plan, c. Regency/City AreaSpatial Layout Plan. d. Harmony and balance with other related activities at the portlocation; e. Technical, economicandenvironmental feasibility; and f. Safety and security ofship traffic., Article74 (1) The Port Master Plan referred to in Artide 73 sub­ Article (1) covers land areaallotmentplanand water area aRotment plan. (2) Theland area allotment plan referred to in sub-Article (1) shall be based on requirement ct1teria- for: a. main faci!ities; and b. supporting facilities. (3) The water area allotment plan referred to in sub-Ar­ tide (1) shall be basedon requirement criteria for: a. main facilities; and b. supporting fadlities. Artide 75 (l) The Port Master Plan referred to in Article 73 sub­ Artlde(1) shall be accompanied with portWork Envi­ ronment Area andInterestEnviranmentAr'ea. (2) Border ... " (2) Border of the port Wwk Erwironment Area and the Interest EnvfronmentAtea referred to in sub-Art:icJe (1) shaH be~I:.I with geographical coordinates tDen~freprt ~~, Port Interest Environment Area for marine ports are stipuiated by: a. Minister for main Portsand Collecting Portsfollow~ ing recornmenclatlDn frOm the GoVernor and Re ro Pat~ Erwfra'l"1'l'E.'l'1t Area .:*itS vi: a. .Lw:I -.. 8"main fadflIie& aAd , 11, "fF I1I" b. wa&erarea used 1W ildiVitieS €I~ lanes, aIllftI..,~.. for tAIl .. "~be­ lWeIBR'" pelt IlQItfor dockIngctfld, move merk, •• fer ~~ .... liT if\ i - di'O uttilil.S· gent/mayoronthecronfwmitywiththe SpatialL.ay~ outPian eI~ and regenc:y/dly; and b" Governor OJ Regent/Mayor for Feeder Ports. (2) Port Master Plan and Port WorkEnvitonmentArea and PortInterest Environment Area for riYer and lakeports are stipulated bytheJlegel'1t'/MaYOr. (4) PertJ....~Areaish (lDIt·watecs. ..,WiIl8'SfI-~Work~~~ for shipping lanes to and frOm the port,~ncv ~ long temt pendevetapment.. place for dead sh~ shIppng~, 5COUtfn!;l activities, epnstn.K.tion fad , andshipmillAtena , (5) The landand/orwatersstipulatedas port work Envi­ ronment Arej3 and portInterestEnvironment Area re­ ferred to Insub-Article (1) arecontrolledby the State andregulated by PortOperators. Artiden Acertain area on WKI orin waters mybestipulated by the Minister asa locationto function asa port,inaccor­ dance with province Spatial layout Plan and Regency/Oty Spatial Layout Plan andmeeting technical andenvironment feasibility requirements. Article 78 Further provisions on the guidelines and pr0ce­ dure on the stipulation of Port MasterPlan, Port Work En Article76 vironmentArea and PortInterest Environment Areashall (1) PortMaster Plan andPort WorkEnvironment Area and beregulated with aGovernment Regulation. (6) In the stipuJated Port Work Environment Area,righton the management of landand/or utilization of waters are given in acoordance with provistons of statutory regulatiOns. BusfneSS Net'(S 7691-7692{7-23-2008 PSirtTwo···.. PartTwo Performance of Activities in Ports Paragraph 1 General Artide 79 Government andexploitation activities in portsas meantinArtide 69 shallbeperformed integratedandco­ ordinated. Paragraph 2 Government Activities in Ports Article 80 (1) Government activities in ports referredto inArticle79 covers: a. regulating anddeveloping, controlling, andsuper­ vising activitiesof port affairs; b. safetyand securityof shipping; and/or c. customs; d. immigration; e. quarantine. (2) Besides the Governmentactivities referred to in sUb­ Article (1), there are other government activities where-inits existence is not permanent in nature. 2BA (4) Thefunction of safetyand security ofshipping referred to in sub-Article(1) letter b is performed by the Har­ bor- Master; (5) Thefunction of customs, immigration,andquarantine referred to in sub-Article (1) lettersc, d, andeshallbe performed inaccordancewithstatutory.regulations. Paragraph 3 PortOperators Artitle81 (1) PortOperators referredto inArticle80sub-Article (3) consist of: a. PortAuthority; or b. PortOperator Unit. (2) PortAuthority referred to in sub-Article (1) letter a is formedfor ports exploitedcommerdally. (3) PortOperator Unit referred to in sub-Article (1) letter b is formedfor ports not yet exploitedcommercially. (4) PortOperatorUnit. Referred to in sub-Artlde(3) may be in the form of Government PortOperator Unit and Regional GovernmentPortOperatorUnit. Artide 82 (3) Theregulatlng anddeveloping, a>ntrollill9, and super- (1) The Port Authority referred to in Article 81 sub-artlde vising activities of t>ort affairsreferredto in sub-Article (1) letter a is formed byandresponsible to the Minis (1) letter a are performed by port operators. ref. BusIness News 7691-7692/7-23-2008 (2) The ...•. 29A (2) The Port OperatorUnit referred to in Article 81 sub­ article(1) letterb is formedby andresponsible to the: a. Minister, for Government PortOperatorUnits;and b. Governor or Regent!Mayor,for Regional Govern­ ment PortOperatorUnits. (3) Port Authority and Port Operator Units referred to in Artlde 81sub-artide (1) is formed for one (1) or sev­ eral pol1s. (4) Port Authority and PortOperatorUhits referred to in sub-Artide (3) act asGovernmentrepresentatives to providecoocessions or other forms to PortBusiness Entitiesto carryout exploitation activities in ports set forthin agreements. (5) Gains of concessions received by Port Authority as meantInsub-Article (4) constitUteStateincomein ac­ cordance with provisions ofstatutory regulations. (6) In Itsperformance, the PortAuthority referred to in Article 81sub-Artide(1) letter a shaU coordinatewith the RegIonal Government Article 83 (1) In order to exercise the functions of regulating and developing, oontrolling, andsupervising activities of port affairs referredto inArticle80 sub-Article (1) letter a, PortAuthorityhasthe duties and responsibilities to; Business~ 7691-7692{7-23-2OO8 a. providelandandwaterareas forthe port; b. provideand J1"Jahltajn wave-breakers, portpool,ship ping lanes,and road nets; c. provideand maintainShipping NavigaOOnAid Means; d. ensuring the security and orderat ports; e. ensure and maintain preservation of the environ­ mentat ports; f. compile Port Master Plan, aswellas port Wor1( Envi­ ronment Area and InterestEnvironment Area; g. Recommend the tariff to be stipulated by the Minis­ ter onthe use ofwaters and/orland, andportfadll­ ties provided by the Government aswellasport af­ fairs services runby thePortAuthority inaa:ordance with provisions of statutory regulations; and h. Ensure the smoothnessofthe flow ofgoods. (:?) Otherthan the duties and responsiliiJmes referredto in sub-Article (1),PortAuthorityshall perform activities on the provision ofand/or port services required by ser­ vice users not yet provided by PortBusiness Entities. Artide84 In order to executethe dutieSand responsibilities referred to in Article83,PortAuthorityhas the authorilyto: a. Regulate andsupervise the use of portlandandwater areas; b. Supervise the useof portWork environment Area and InterestEnvironment Neaj c. Regulate shiptraffil: to andfrOm the port by shipscout­ ingjand d. Stipulate standards of operational performance of port services. Artide 85 ...•• 3QA Artide8S The PoItAuthortty andPort Operator Unit referred to in Article 81 sUb-article (1) areprov;ded with rights on the n'Ianagement:of land and utilization ofwate~ in secor­ danceWIth provisioos«statutory regutations. ArtideB6 Port AuthorIty and Port OperatDr Unitapparatus arestate cMJ servants having the capability andcompe­ tence in the fieldof port affairs in accordance wtthstipu­ lated oiteria. ArtideS7 The Port Operator Unit referred to in Article 81 sub-attide (l) letterb has the dutieSandresponsibilitieS to: a. provide and rrnlIlntalnwave-breakers, port pool, and shipping lanes; b. provide and maintain Shipping Navigation Aid Means; c. ensure the security and order at the port; d. ensure and maintain preservation 'Of the environment of port; e. compile Port Master Plan as well as port Work. Envi­ ronment AIm andInterestEnvlronmentArea; t. ensure the smoothness of the flow of goods; and g. provide portfacilities,. Artide88 {1} In the framework of supporting a free trade zone, a separate portmay beestablished. (2) The establishment of the port referredto in sub-Article (1) shan beperformed in aca:lrdance withprovisionsof statutory regulationS in the field of free trade zone, Busine55N~ 7691-7692{7-23-2008 (3) The performance of safety and security functions at the port referred to in sub-Article (1) shall be per­ formed in accordance with thisLaw. ArtideB9 Further provisions on Port Authority and Port Operator Unit shall be regulated with a Government Regulcltlon. Paragraph 4 Exploitation Ac:tMties in Ports ArtieJe90 (1) Exploitation activities ina portconsist of the prov;sion and/or serving of portservices andport-refated ser­ vices. (2) Theprovisionand/orservill90f port services referred to In sub--Artide (l) consists of the provision and/or serving of services to ships, passengers, and goods. (3) Theprovision and/orsetVlng ofseMces to ships,passen­ gers, andgoods referred to inSlID-Artide (2)consist of: a. provisionand/or serving quay set'Vices-for moor~ ing; b. proYJsJon and/orserving offilllllQ"'infuel anddean water services; c. provision and/or serving of fadlities for the em­ barkation/disembarkationof' passengers and/or vehicles; d.~ cnJ/rr seNi'g cIQlBY 9!I'\fke; fa' thep:rb­ rTIarl:er;lkB:irYJam lI'Ud'gctgxx:1;cn1containers; e. provision and/or serving of warehouse services and pi~ing-up places, loading andunloading equip­ ment, and port equipment; f provision .... f. provision and/or serving of containerterminalser­ vices, liquid-pour, dry-pour, and Ro-ro; g. provision and/or serving of loading and unloading services for goods; h. provision and/or serving of centerof distribiltions andconsolidation of goods; and/or i. provision and/or serving of tug-boat services. (4) Activities of port-related services referred to in sub­ Article(1) covers activities supporting the smoothness of operations, andto provide added valuefor the port, Article 91 (1) Activities on the provision and/or serving of port ser­ vices referred to in Article 90 sub-article(I) in ports exploited commercially are performed by Port Busi­ ness Entitiesin accordance with the type of business permitpossessed. (2) Theexploitation performedby a Port Business Entity referred to in sub-Article (l) maybe carried out in morethan oneterminal; (3) Activities on the provision and/or servingof port ser­ vices in ports not yet exploitedcommercially shall be performed by PortOperatorUnits. (4) In certain cases/ terminal and other port facilities of ports exploited by Port Operator Units may be per­ formed bya PortBusiness Entitybased on agreement. (5) Theport-related services referred to in Article90sub­ artide (1) maybe performed byIndonesianindividual citizens and/or business entities. Business News 7691-7692/7-23-2008 31A Article92 Activities on the provision and/or serving of port services performed byPort Business Entities referredto in Article91sub-article (1) arecarried out based on conces­ sions or other forms set forth in agreements. Paragraph 5 PortBusiness Entity Article 93 PortBusiness Entities referred to in Article 92shall act as an operator operating the terminal and other port facilities. Article 94 In the perfonnance of activities on the provision and/orserving of port services referredto inArticle 90sub­ article (1), the PortBusiness Entityhasthe obligations to: a. provide andmaintainthe feasibility of port fadlities; b. provideservices to portservice users in accordance with services stipulated by the Government; c. maintain the safety, security andorderof operated port facilities; d. participate in keeping the safety/security andorder in connection with transportationon waters; e. maintain the preservation of the environment; f. fulfill obligations in accordance with the concession in the agreement; and g. obey provisions of statutory regulation, both national andinternatiOnal. Article95 Further provisions on Port Business Entitiesshall be regulated with a Government Regulation. paragraph 6 ...•. 32A Paragraph 6 PortCOnstruction andOperations Artide96 (1) constnk:tIon of seaports shall be performed based on pelTilltfrom the: a. Minister, for mainportsandcollecting ports;and b. GovernOr or Regent/Mayor, for feeder ports. (2) The construction of the sea ports referred to in sub­ Article (1) must meet port technical requirements, pres­ ervation of theenvironment, and observing the integ­ rity of the intra-modeand inter-mode of transporta­ tion. Artic;:le 97 (1) sea. portsmayonly beoperatedafter its construction had been oomplelEd, had metoperational requirements, andhadreceived a permit, (2) Permitto operatea sea port is issued by the: a. Minister, for main ports and collecting ports;end b. Governor or Regent/Mayor, for feeder ports. Artlde98 (1) Construction of riverand lake ports mustobtaina per­ mit from the Regent/Mtlyor. (2) The construction of theriverand lakeports referred to in sub-ArtIcle (1) shall be based on pelt technical re­ qulrernents, preservation of the environment, andob­ serving the integrityof the intra-modeandinter-mode of transportation. (3) Riverand lake ports may only be operated after the constnJction hadbeen completed, had metoperational requirements, andhadreceived apermit. Business News 7691-7692{7-23-200B (4J Permitto operatea riverand lakeport is issued by the Regent/Mayor. Article 99 Further provisions on pennit on the construction andoperationsof ports shall be regulatedwith aGovern­ ment Regulation. Paragraph 7 Indemnification Uability Article100 (1) Indonesianindividualdtizensand/or business entities performing activities at ports shall be responsible to indemnifyanylosses to port buildingsand/orfacilities caused by itsactivities. (2) Ship ownersand/or operatorsare liable to indemnify anylosses to port bUildings and/or facilities caused by its ship. (3) Toensure the.execution of the indemnification liability referred to in sub-Artide (l), shipownersand/or op­ erators perfonning activities at ports.mest providea guarantee. Article 101 {I) Port Business Entity is liableon losses suffered by ser­ vice usersor other third parties for errors in the op­ erationsof port. (2) Port serviceusersor third parties referred to in sub­ Artide (1) havethe right to file indemnification claims. PartThree .. (To be continued ) ====(D)=== 23A SHIPPING (Law of Republic of Indonesia No. 17 Year 2008 dated May 7, 2008) [Continued from Business News No. 7691-7692 pages. 14A-32A] Part Three Special Terminal and Terminal for Own Interest Article 102 (2) In order to build and operate the special terminal re­ ferred to in Sub-article (1), it is obliged to meet re­ quirementson port technicalities, Shipping safetyand (1) To support certain activities outside of port Work Envi­ ronment Area andInterestEnvironment Area, special terminals may be built. (2) Tosupport c:ertalnactivities within portWork Environ­ ment Area and Interest Environment Area, terminals for own interestsmay be built. security, and preservation of the environment, with a permit from the Minister. (3) Permit for the operation of special terminals shall be given for a maximum term of five (5) years, and ex­ tendable to the extent theV meet requirements based on this Law. Special terminals are prohibited to be used for public interests except in emergencies witha permit from Artidel0S the Minister. Article 103 Thespecial tenninalrefeITed to In article102para­ graph (1): a. stipulated aspartof the nearestporc b. mustpossess certain Work Environment Area andIn terest EnvironmentArea; and Article 106 c. Government agencies performing shipping safety and Special terminal not operated anymore In eccor security, and agencies performing Government func- dance with the issued permit may be handed over to the tlons in shall be placed there-In according to necessi- Govemment or restored to its Fonner condition, or recom ties. mended for a change of status to be special terminal to support other basicbusiness or changed to bea port. Article104 (1) The special terminal referred to in article 102 para- Article 107 graph (1) may only be built and operated in the event: (1) The status of a special terminal referred to in Article a. The nearest port cannot accommodate basic ac- 106 that is handed over to the Govemment may be tivities;and changed to a portafter meeting the following require b. Basedoneconomic and operational technicalities, ments: will be more effective andefficient, andcan ensure a. ronforming toNational PortMaster Plan; shipping safetyandsecurity If the special terminal b. feasible economically andtechnically operational; isbuilt and operated. c. to form or establish PortBusiness Entities; Busirll<;~News 769::117-25-7008 d. had ...•. d. hadreceived aconcession fromPort Authority; e. safety, order, and security of shipping; and f. preservation of the environment. (2) In the event a spedal terminal changes status to a port, then the landand/or waterareas, wave-breaker fadlities, port pool,shippinglanes, andShipping Navi­ gationAid Means controlledandownedby the special tennlnal operator referred to in sub-artide (1) shall bedeliveredto and shall becontrolled by the State. Artide 108 Further provisions onspecialterminal and changes a its status shan be regulated witha Government Regula­ tion. PartFour Tariff Stipulation Artide109 Every service ci portservices shall be charged with tariff in accordance with the service rendered. Article110 (1) Tariff relateQ with the use of land and/or waters and services of ports operated by Port Authority is stipu­ lated by the Port Authority after being consulted with the Minister. (2) Tariff of port !iE!rvices expbited by Port Business Enti­ ties isstipulated bythe PortBusiness Entities based on the type, structureandcategoryof tariff stipulated by the~t, andamstiMesan income of thePort Business Entity. Bustness News 7693""'25-2008 (3) Tariff of port services not exploited commercially by the Government shall be stipulated by a Government Regulation, andconstitutes a Non-Tax State Income. (4) Tariff of services of ports exploited by the provincial governments and regency/city govemmentsshallbe stipulated by Regional Regulation and constitutesthe regions' income. Partfive Ports Opened to Overseas Trade Articlet11 (1) Port activities to support the smoothness C)f trade eoened to overseas trade areperformed bymainports. (2) StipUlation of the port referred to in sub-artide (1) is made basedon the following considerations: <:l. growtn anddevelopmentof national economy; b. Interests of international trade; c. interestsof the developmentof nationalseatrans­ portationcapability; d. geographical position situated on international ship ping crossroads: e. NationalPortOrder; f. Port facilities; g, Statesecurityandsovereignty;and h. Other national interests. (3) certain special terminalsmaybe usedto perform over­ seas trade activities. (4) The certain special terminal referred to in sub-article (2) must meet the following requirements: a. administrativeaspects; b. economic aspects; c. shipping . . . . • 25A c. shippingsafetyandsecurityaspects; d. port facilitytechnical aspects; e. officefacilities andsupporting equipment for agen­ ciesholdingthe shippingsafetyand securityfunc­ tions, customsand exciseagencies, immigration, andquarantine; and f. typesof spedalcommodities. (5) Portsand special !.erminals openedto overseas trade are stipulated by the Minister. Article112 (1) Any person violating the provisions referred to in Ar­ ticle 111 sub-Article (4) may be lmposed of adrnlnls­ trative sanctions in the form of administrative fine. (2) Further provisions on the procedureon the imposing of administrative sanctions andthe amountof adrrun­ Istrative nne referred to insub-Article (1)shall be regu­ lated with a Government Regulation. Article 113 Furtherprovisions on portsand special terminals opened to overseas trade shall be regulatedwitha Gov­ emmentRegulation. PartSix Role of the Regional Government Article 114 Role ofports referred to InArtIcle 68 is executed to provide benefits to the regionalgovernments. Article115 (1) In orderto provide the benefits referred to InArticle 114, theregional govemments have thefollowing roles, duties andauthorities: Business News 7693/7-25-2008 a. to motivatethe developmentof tradezones, indus­ try zones, and center of other economic activities; b. to control the assurance of preservation of the en­ vironmentat the port; c. participate in the assurance of safety and security of port; d. to provideand maintain infrastructures connecting portswith trade zones, Industryzones, and center of other economicactivities; e. to developthe community aroundportsand to fa­ cilitate the public within its region to partidpate positively for the performance of portaetivities r. to provide content InformatioR center at region level; g. to provide permits to construct: buildings on the land sicle; and h. to provide recommendations for the stipulation of the locationof port and Special terminal. (2) In the event the regional government can not perform, or misuse its role,duty and authority, the Government shall take over such role, duty and authority inaccor­ dance withprovisions of statlltory regulation. CHAPTERVIH SAFETY AND SECURITY OFSHIPPING PartOne General Article 116 (1) safety and securityofshippingconsistsof safetyand securityof shipping on water, port and marineenvi­ ronmentproteetlon. (2)Tbe·....... (2) The performance of safety and securitY of shipping referredto in sub-article(1) is carriedout by the Gov­ ernment. part TWo safety and Securityof Shipping Article117 (1) safety and securityof shipping is a condition where the following! requirements are fulfilled:, a. ,Shipsea-wcrtnmess, and b. Navigation. (2) Shipsea-worthiness referred to in sub-article(I) let­ ter a must be fulfilled by every ship according to its areaof sailing,covering; a. shb's safety; b. preventionof pollutionfrom ships; c, shipmanning; d. ship load linelandloading; e. Prosperity of crew and health ofpassengers; f. Legal status of shipj g. Management of safetyand preventionof pollution fromshiPSi h. Management of ship's security. (3) The fulfillment of each requirement of ship sea-wor­ thiness referred to Insub-article (1) shallbe proved with certificate andshipdocuments. ArtIcle118 The navigation referred to inartide 117paragraph (1) letter b consists of: a. Shipping Navigation AidMeansj b. Shipping Telecommunications; c. Hydrograph~ Meteorology; Business News 7593{7-25-2008 26A d. LanesandcrOssings; e. Dredging-and reclamation; f. Scouting; g. Handling of ships'bodies; and h. salvageand underwaterworks. Article119 (1) To ensure the safetyand securityof shipping referred to in artide 117paragraph(t), the Government shall performt/ltplanning, procurement, operations, main­ tenance, andcontrolof Shipping NavtgatIon AidMeans andShipping Telecommunications according to inter­ nationalprovisions, and stipUlate shipping lanesand sroutlng waters. (2) To ensurethe safetyand securityof Shipping Naviga­ tion Aid Means andShipping'Telecommunications, the Government shall stipulate safetyand securityzones around buildinginstallations. Part Three safety and securityof Port Artide 120 Theconstructlon andoperations of ports mustbe performed byconsistently observing the safetyand secu­ rityof ships operatirg in the port, loadirg andunloading of goods, embarkation anddisembarkation of passengers, as well as safetyand securityof the IX'rt itself. Article121 Sart:ly Cllll.! security of port ls a condition where the r~uirements on the managementof safetyand port fadliti~s securitysystemare fulfilled, wvering: a. procedure of securingportfa;:ilitiesj b. port ... '-'-' b. portsecuritymeans; c. communication system; and d. security personnel. Article 122 Everyoperation of ship- and port must fulfill re­ quirements on safety and s&:urity as well as on marine environmentprotedion. Part Four Marine Environment Protection Article 123 Marineenvironmentprotection isa conditionful­ fillingthe procedure and requirements011preventionand control ofpollutionfromthe following activities: a. port affairs; b. the operatingof ships; c. transportation of waste, hazardous andtoxicsubstance 27A b. construction; c. building; d. machineryand electridty; e. stability; f. layout and ancillaries including rescue equipment and radio; and g. ship'selectronics. Article 125 (1) Prior to the building and working-on ship includingits anclltarlas, thf' "hip owner or ship dock must draw up calCUlations and its designdrawing aswell asdata of its ancillaries. (2) The building01" working-onshipunderrenovation must conformto the designdrawingand data that hadbeen legalized by the Minister. (3) supervsion on the building and renovation of ship is exercised by the Minister. on waters; d. disposal of waste in waters; and e. scrapping of ship. OiAPTERIX SHIP SEA-WORTIHNESS PartOne safety of Ship Artide 124 (1) Every procurement,building and working-on Ship in­ duding Its ancillaries, and operationsof shipsin Indo­ nesian waters must fulfill ship safety requirements. (2) Theshipsafetyrequirements referred to in sub-article (1) covers: a. material; Business News 7693/7-25-2008 Article 126 (1) Ships that are stated as having met ship safety re­ quirementsaregivencertificateof safetybythe Minis­ ter. (2) The certificate of safety referred to in sub-article (1) consists of: a. certificate of safety for passengers ships; b. certificate of safety for cargoships;and c. certificate of shipsea-wortnlness and manningfor fish-catching ships. (3) Ship'ssafety is determined thru inspectionand test­ ing. (4) Ships which had obtained the certificate referred to in sub-artide (i)shall be controlled continuously untilthe ship is not used any more. (5) The inspectionand testing as well as controlling re­ rerred to in SUb-article (3) aM (4) must be performed by government officials provided with authority and having the competence. Article 127 (1) Shipcertifica~ is not valid if: a. validity period expires: b. certifrcatewas not endorsed; c. shipisout of orderand stated asnot meeting ship's safety requirements; d. changeofship's name; e. changeof ship'sflag; f. ship is no more in accordance with the technical data in the shipsafely certifrcate; g. ship undergoes renovation causing changes of shp's ronstruetiOn, ship'S main measurement. ship's func­ tion or type; h. ship is sunk orlo5t; or ~rapped. (2) Ship rertlticate shall berevoked if: a. information in the ship documents used to issue the certiticate isfound out to benot in accordance withthe realfacts; b. shipdid not meet ship safety requirements; or c. certificatewasobtained illegally. (3) Furtherprovisionson procedureof certificate revoca­ tion referred to in sub-article (2) shall be regUlated with a ReguJatjon ofthe Minister. Article 128 (1) ShipCaptainand/or Crew shall notify Ship Safety In­ vestigatorOffldal if they kneWthat the wndition of the Business News 7693(7-25-2ooB ship or parts there-of are deemed not meeting ship safety requirements. (2) Owner, operator and Captain of ship are obliged to assistthe perfonnanceof inspectionsand testing. Artide 129 (1) Shipsmust be dasslfied based On certain types and tonnageat the classificationagendes for the purpose of shipsafety requirements. (2) The national classificationagenciesor acknowledged foreign dassification agencies may be appointed to perform inspectionsand testing on shipsto fulfill ship safety requirements. (3) The acknowledgement andappointmentof thec1assi­ flcatinn agency referred to in sub-artide (2) is made bythe Minister. (4) The appointeddassificatiooagency referredto in sub­ article (2) must report its activities to the Minister. Article 130 (i)-Every ship obtaining the certificate as referred to in artlde 126 paragraph(1) must be maintainedso that it canstay put meeting shipsafety requirements. (2) Ship maintenance referred to in sub-article (1) sholl be performed periodicallyand from time to time. (3) In certain conditions, the Ministeris authorizedto ex­ empt someofthe stipulated requirementsby still ob­ servingship'ssafety. Arttcle 131 (1) According to its type, tonnageandad of sailing, ships must be equipped with navigationequipment and/or shipnavigationelectronicsmeeting requlrements, mAccording ..... 29A (2) According to itstype; tonnageandareaofsailing, ships must be equIpped with r<Jdio communication sets with its andllaries meeting requirements .. Article 132 (1) Acmrdingto its type, tonnageandareaofsalling, ships mustbe equipped with meteorology meetingrequire­ ments. (2) The ship referred to in suo-arnde (1) is obliged to submitweatherinformation iii accoedance withprovi­ sions of statutory regulation. (3) A salling Captain being awareof badweatherendan­ gering shipping safetymust disseminate it to other parties and/orrelated Government agencieS. Article 133 Further provisions on proc;edure for thelegaliza­ tion otblueprints andtile Supervision of shipbUildings, as weD asthe Inspection andcertification of ship safetyshall be regulated witha Government Regulation. PartTwQ Prevention of Pollutionfrom Ships Artide 134 (1) Every Ship operating in Indonesian watersmustmeet requirementsonprovisionsof pIjllutionprevention and control. (2) TheprovISionSd pollUtIon preventiOn andcontrol shall bedeterminEld byinspedionsand~rtJ. (3) Aship stated asmeeting requirements onprovisions of pollution prevention and control shall be given a certificateon pollution prevention andcontrol by the Minister. Business News7693/7-25-2008 (4) Furtherprovisions on the prevention of pollution from 1:hlpsshall be regulated with a Government f'l,egula­ Don. Part Three ShipManning Article135 Every ship must be manned by Crews meeting qualifications and competencE requirements in accordance withnationalandinternational provisions. Article 136 (1) Ship captainandCrew for ships flyingIndonesian flag mustbeIndonesian dtizetls. (2) Exemption on the provision referred to in sUb--article (1) maybepermittedin accordance with provisions of statutoryregulation. Article 137 (1) captainof ships weighing 35GT(thirtyfive GrossTon­ nage)or morehasa law- enforcement authority and isresponsible on the safetyt securityandorderofship, shipping, andcargo. (2) captain of ships weighing less than 35 GT(thirty five Gross Tonnage) andfor traditional ships weighing less than 105 GT (onehundred andfweGross Tonnage) withsimpleconstruction sailing00 limitedwatersare responsible on the safety,security andorderof ship, shipping, andcargo. (3) Caplclin:> are not responsible on tflevi:llldity or mate­ rial truth of shipcargodocuments. (4) captainmust reject andnotify the agency havingthe authority ifhe Isaware that the transportedcargo is not inaccordance with Cargo docUments. (,5)Besides•.... (5) Besides the authority referred to in sub-artide (1)/ Captains of shipsweighing35.GT(thirty fiveGrossTon­ nage)or more, are provided with special tasksand authority,i.e.: a. to reoordall births; b. to recordalldeaths; and c. to witness and record all wills. (6) captains must: meet requirements oneducation,train­ ing, capability, skill and health. Article 138 (1) ACaptain shouldalwaysbe on boardwhensaiHng. (2) Before a ship salls,the captain must ensurethat his ship had mel: ship sea-worthlness requirements, and shallreport there-ofto the HarborMaster. (3) A Captain has the right to Ieject to SllIil his ship if he knows that theship does notmeet the requirements referred to Insub-artlcle(2). (4) Ship owneror operator mustprovidefreedom ofac­ tion to the capcain to exECUte hisobligations Inaccor­ dance withpnMsionsd sI:aI:utI.WVregulation. Artlde139 For rescue actions, a Capt!llnhas theright to de­ YiBtefrom the stipulated route ar:td take other necessary actions. Article 140 (1) In the event a captain of a shipwelghing 35 GT(tilirty five Gross Tonnage) or morebeing ondutyonacruis­ ingship cannotperform hisdutiestemporarilyor~ forth, Mate-I shallreplace him,and at the nextVISIted port, the captain shall be repiaa!d. Business News 7693/7-25-2008 30A (2) If Mate-I referred to in sub-artide (1) is unable to re­ place the Captain referred to in sub-article (I), the next highest mate in positionaccordingto certifICate shall replace, andin the next visited port, the Captain shall be replaced. (3) In the event the replacement of the Captain referred to in sub-artide (1) and (2) is because of beingpre­ vented temporarily, the replacement shan not transfer thecaptaln'$authority and responsibility to the tem­ poraryolficer Incharge. (4) Ifall the matesonthe shlpare prevented from replac­ ing the captain as referredto in sub-article (1), tile olfIter to be In Charge wHl be appointed by the Ship ooundl. (5) In tilt: event the replacing of the Captain referred to In sub-artide (1) is due to permanentcauses, the temp porary repladng captain hasthe authorityand respon­ s1bHlty as regulated in Artide 137 paragraph (1) and paragraph (3). Article141 (1) captain of a ship weighing 35 GT (thirty five Gross Tonnage) or moreorcaptain ofa passengership,must maintain theship's logbook. (2) captain of a ship weighing 35 GT (thirtyfive Gross Tonnage) or more is obliged to report the ship log­ bookto a Government official haVing theauthorityand! oron the requestof the partyhaYing the authority to show the ship logbook or to give itscopy. (3) The ship logbook referred to Insub-artide(1) maybe used asevidence in court. Article 142 •••• , Article142 (1) Crew of a shipmust obey orders ur theCapteln cor­ rectly and prudently, and are prohibitedto leavethe shipwithout the captain's permission. (2) In the event the crew of a shipareawar~ that an or­ dertheyreceived is not in acc:ordance withprovisions cIstatulDry regulations, theperson concerned hasthe rightto report toa Government otfIdal having the au­ thorly. Article 143 (1) The captain hasthe authority to Impose disciplinary actions on violations committedby the shipcrewwho: a. Ieltthe shipWithout the Captain's permission; b. didnot return to the shipon time; c. did not perform duties properly; d. rejected assignment orders; e. behaved incotrectly;and{or f. behavedimproperly. (2) Theexecution of the provisions referredto in sub-ar­ tide (1) shallbecarriedout in accordance withprovi­ sionsOfstatutory regUlation. Artidel44 (1) Whenthe ship iscruising, the captain is authorized to take actionson anybody who are on boardof the ship illegally. (2) The captain shall take actions if the person and{or those on board cIthe ship shallendangerthe safetyof the Ship andthe Crew. (3) Theaction referred to in sub-article (1) shall be car­ riedout In accordance with provisions of statutoryregu­ lation. Business News 7693{7-25-2008 31A Article 145 Everybody is prohibited to employ anyone on board a ship in any position whatsoeverWithoutcertificateand without havingany competence and skillandthe required sailordocuments. Article 146 Further provisions oncertil'ication, manning of ship, and sailor documents shall be regUlated with a MiniSter Regulation. Part Four Ship Load-UneandLoading Article 147 (1) The load-lineof every cruising ship should be stipu­ lated in accordance with requirements. (2) The stipulation of ship load-line is stated in a Load­ Line CertifICate. (3) Oneveryshipaccording to its type andweight,a Load Line Mark should be installed permanently in accor­ dancewith its areaof sailing. Article 148 (1) Everyshipaccordingto its type andweight shouldbe equipped withstability information to enablethe Cal'" tain todetermine all condition of loads inallcondition of the ship. (2) Procedure of handling, placement, and compacting QOOds cargoandthe arrangementof limitsmustfulfill shipsafetyrequirements; Artide 149 (1) Anycontainer usedas part of transport means must meetworthinessrequirementof containers. {ll procedure .... (2) Procedure of handling, placement, and compacting containersand thearrangement of limits must fulfill shipsafetyrequirements. Article150 Further provisions on load-lineand loading shall be regulatedwith a Regulation of the Minister. 32A b. medical equipmentandmedicines; and c. medical man-power. Article153 Further provisions onworkagreement andrequire­ mentsof passengers' health fadlities shall be regulated with a Government Regulation. PartFrve Prosperity of Crewand Healthof Passengers ArtIcle 151 (l) Every Crew hasthe right to receiveprosperitymeans covering: a. salary; b. workhoursand resthours; c. assurance of departureto placeof destinationand return to placeof origin; d. oompensatlon ifshipisinoperable dueto accidents; e. opportunityfor careerdevelopment; f, provision of accommodation, recreation fadlities, foodor drink; and g. Health mairitenance and treabnent andwork-acci­ dent insurance. (2) The occupational prosperity referred to in sub-artlcle (1) must be stated in the work agreement between theCrewandowneror operatorofship in accordance wittl proviSiolilS of statutory regulations. Article 152 (1) Everyshiptransporting passengersmustprovidehealth facilitiesfor passengers. (2) The healthfadlitlesreferredto in sub-ertide(1) cover: a. medidnaltreatment place; Business News7693/7-25-2808 Part Six Legal Statusof Ship Article154 The legal status of Ship can be determinedafter the following process: a. measurement of'shlp; b. registration of ship; and c. stipulation of nationalityof ship. Article155 (1) Beforebeingoperated,every shipmust bemeasured by governmentomdals proVided with aUthonty by the Minister. (i) The measuring of ship referred to in sub-article (1) canbe performedin three (3) methods,i.e.: a. domesticmeasuring for shipsless than 24(twenty tour) meters long; b. internationalmeasunng for ships24 (twenty four) metersor more in length; c. special measunngfor ships passing through cer­ tain canals, (3) Based on the measurementreferred to in sub-article (1), Measurement Documents shallbe issued for ships of at least7 GT(sevenGross Toonage). (4) The Measurement Documents referred to in sub-ar­ ticle (3) is iSsued by the Ministerand is entitled to be delegated to an appointedofficial. Artlde 15&,.. ... Article156 (1) Onships having been measured and issued with Mea­ surementDocuments, it is obliged to install a Brand Sign. (2) The Brand Sign must be installedproperlyon the ship and should be easilyread. Article157 (1) The owner, operator,or Captain of a shipshould im­ mediatelyreport in writing to the Ministerif there are any renovations on the ship causing changes to the data contained inthe Measurement Document. (2) If there lire changes of data as referred to in sub­ artide (1), re-measurement of theshipshould be per­ formed immediately Article158 (1) Ships that had beenmeasured and issued with Mea­ surementDocuments may be registered in Indonesia by the ownerto the Registration Official andRecorder ofTransfer of Title of Shipstipulatedby the Minister. (2) Ships that may be registered in Indonesia are: a. ships that weigh at least 7 GT (seven GrossTonnage)i b. shipsowned by Indonesian citizens or business entitiesestablished based on the Laws of Indone­ sia anddomiciled in Indonesia; and c. ships ownedbyIndonesian business entitiesin the form 'of joint venture where the majority of its shares are ownedby Indonesian citizens. (3) Shipregistration ismadebydrawingup a registration deed,and registered in the Ustof IndonesianShips. Business News 7693/7-25-2008 33A (4) As proof that a ship had been registered, the owner shallbegivena registrationdeedgross functioning as proof of ownershipof the registered ship. (5) On shipsthat had been registered, it isobligedto in­ stal/ a Registration Sign. Article 159 (1) Registmtion of ships shallbe performed at places stipu­ latedby the Minister. (2) Shipownersare free to choose one of the ship regis­ tration places referred to in sub-article (1) to register its ship. Article 160 (1) A ship is prohibited to be registered if at the same time, the ship is still registeredin anothership regis­ tration place. (2) Foreign ships goingto be registered in Indonesia must be equipped with cancellation statementdocuments from the flag country of the ship. Article 161 (1) Shipgrossregistration deedthat isdamaged, lost, or destroyed may be replaced with a newgross deedas replacement. (2) Thereplacement grossdeedreferredto in sub-article (1) mayonly be issued bythe Registration Official and Recorder of Transferof Title of Ship atthe placewhere the ship wasregisteredbased on a stipUlatIon from a districtcourt. Article 152 •.. , , , 34A Article162 (1) Transferof title on a shipmust be performed by trans­ ferring the title at the place where the shipwas regis­ teredprevioosly. (2) Thetransferof title referredto in sub-article(1) shall be performed by drawing up a transfer of title deed, and recorded in the master list of the relatedship. (3) Ps proofthat a transferof title on the shiphad taken place tothe newowner,a grosstransferof title onthe shipshallbe issued. Article 163 (1) Ships registered in Indonesiaand sailingon the seas shall be issued Indonesian Nationality Ship ProofDocu­ ment by the Minister. (2) The Indonesian NationalityShipProofDocument rep ferred to in sub-article(1) ts issued in the form of: a. sea Document for ships weighing 175GT(onehun­ dredseventyfive Gross Tonnage) or more; b. LargePass for shipsweighing 7 Gf (sevenGross Tonnage) up to less than 175 GT (one hundred seventy fiveGrossTonnage); C. Small Pass for ships that weigh less than 7 GT (seven Gross Tonnage); (3) Ships sailing only in riversand lakes are provided with river pass or lake pass. Artide 164 State ships maybe issued theIndonesian National­ ity ShipProofDocument. Business News 7693/7-25-2008 Article 165 (1) Ships of Indonesian nationality mustflyIndonesian nag assignof shipnationality. (2) Ships not of Indonesian nationalityareprohibited to fly Indonesian flagas signof its nationality. Article 166 (1) Elieryshipsailing in Indonesian watersmustshowthe <;hiJ)'<; identityclearly. (2) Anyforeignshipenteringport,for the durationin port, and going to depart from ports of Indonesia must fly Indonesian flag besides it nationalityflag. Article167 Indonesiannationality shipsare prohibitedto fly othercountry'sf1ug £IS signof nationality. Article 168 Furtherprovisions on procedure for the measur­ ingand issuance of measurement documents, procedure, requirements, anddocumentation of shipregistration, and procedure and requirementsfor the issuance of Indone­ sianNationalityShipProofDocuments shallbe regulated with a Regulation of the Minister. Partseven , ( To be continued) ===(D)==~ 6A SHIPPIN G (laW of Republic of Indonesia No. 17 Year 2008 dated May 7, 2008) [Continued from Business News No. 7693 pages 23A-34A] Part5even Managementof Safety andPrevention of Pollution from Ships Article 169 (1) Owneror operatorof ships operating certainlype and weight of ships must fulfill requirements on safety management andprevention of pollution fromships. (2) Ships that had fulfilled the requirements on safety management and prevention of pollution from ships referredto in sub-article (1) shall be givencertificates. (3) Thecertificateof safetymanagement andprevention of pollution from shipsreferredto in sub-artcle (2) is in the fonn of Document ofCompliance (DOC) and Safety ManagementCertificate(SMC) for ships. (4) The certificate referredto in sub-article (3) shalf be issued following anexternalaudU: by competent gov­ emmentofficials provided with authorityor institution provided with authorityby the Government. (5) Safely ManagementCertificate and Prevention of Pol­ lutionfrom Ships is issued by an offIcIal appointed by the Minister. (6) Furtherprovisions on procedure of auditandthe issu­ anceof Safety Management Certificate and Preven­ tion of Pollution from Ships shall beregulated witha Regulation of the Minister. PartEight Managementof Ship's Security Article170 (1) Owneror operatorof shipsoperatingcertainweight of ships mustfulfill requirements on the management of shipsecurity. BusInF";'; News 7695/8-1-2008 (2) Ships that had fulfilled the requirements onshipsecu­ rity management referredto in sub-article (1) shallbe givena certificate. (3) Thecertificateof ship securitymanagement referred to in sub-article-(2) is in the form of InternationalShip Security Certificate (ISSC). (4) The certificate referred to in sub-article (3) shall be issued following an external audit by competent gov­ ernmentoffkials provided with authorityor institution provided With authorityby the Government. (5) Ship Security Management certifICate is issued by the offICial appointed bythe Minister. (6) Furtherprovisions on procedure of auditand the issu­ ance of SeaJrity Management certificate shall beregu~ lated with a Regulation of the Minister PartNine Administrative sanction Article 171 (1) Any person violating the provisions referredto inAr­ ticle 125sub-Article (1), Article129sub-Article (1) or sub-Article (4), Article130-suI).Aiticie (1), Article132 sub-Article (1) or sub-Article (2), Article 137sub-Ar­ tide (I) or suh-Article(2); Article 138sub-Article (1) or sub-Article (2), Article 141 sub-Article (1) or sub­ Artide (2), Article152sub-Article (1'), Artlde 156sub­ Article (1), Artide 160 5ub-Artide(1), Article 162 sub­ Article(1), or Article 165sub-Article (1), shallbe im­ posed of administrativesanctions in the form of: a. Wamingi b. Administrative fine; c. Freezing Of permit or certificate; d. Revocation d. Revocation of permit or Cl!rtificate. e. Not provided with certiftcat.e; or f. Not provided withsailing ApprovalDocuments. (2) Any~oft'IdIIlIioiIUngthe provisions referred to in ArtIcle 126 sult-Artide (5) shall be imposed of ~ S8I'lC.1UenS inaooordance with provisions cI statutDry~ In1M fieldof man-power. (3) Further provisions on Pf"OClIdure and the proc:edure of imposing the adminislJ'atiVe sanctions referred to in sub-Article (1) and sub-Article (2) shall be regulated with a Government Regulation. OiAPTERX NAVlG\TION PartOne ShippingNavigation Aid Means Article 172 (1) Ihe uovemment is responsible tokeep the safety and security of shippingby operating Shipping Navigation Aid Means in accordance with technicaldevelopment. (2) Besides tokeep the safety and security of shippingas referred to in sub-artide (i), ShippingNavigationAid Means can also be used for other purposes. (3) The operationsof ShippIng NavigationAid Means re­ ferred to in sub-artide (1) must meet requirements and standardsin accordance with provisions of statu­ tory regulations. (4) In certain situations, the procurementof Shipping Navic gationAidMeans as part of the operationsreferred to in sub-article(2) may beperformed bybusiness enti­ tles. (5) ShippingNavigationAid Meansprocured by the busi­ ness entities referred toin sub-article(4) shallbecon­ trolled by the Government. (6) The business entities referred to insub-artide (4) are obliged to: a. maintain and treat the Shipping NaVigation Aid Means; Business News 7695/8-1-2008 7A b. ensure the reliability of Shippfng Navigation Aid Means with stipulated standards; and c. report to the Ministeron the operationsof Shipping NavigatlonAidMeans. Article 173 The operations of 5mpping Navigatkln Aid Means shall be executed by officers meeting requirements on health,educationandskill proved by certifICate. Article 174 Any person are prohibited to damage or to take any action whatsoever likely to causethe malfunctionof Shipping NavigationAid Means aswell as facilitiesof ship­ ping laneson the sea, river and lake. Artide 175 (1) Ownerand/or operatorof shipare responsible on any damage of Shipping Navigation AidMeans andobstacles on the sea, river and lake caused by the operation of its ship. (2). The responsibIlity of the ownerand/or operetcr or~hip as referred to in sub-artide (1) is in the form of an obligation to immediately repair or replaceit so that such facilitiescan function properly. (3) The repair and replacement referred to in sub-article (2) shall be performed within a time limit of 60 (sixty) calendardaysfrom the time the damageoccurred. Article 176 (1) Ships sailing on Indonesian waters are chargedwith costs onthe utilization of Shipping Navigation AidMeans constitutingStateNon~Tax Income. (2) Costs on the utilization of Shipping Navigation Aid Means shall not beimposedfor shipsof certain coun­ tries and for certain ships. Article 1177 ..... Article177 Furtherprovtstons un the operauons uf Shipping Navigation Aid Means shall be regulatedwith a Govern­ ment Regulation. PartTwo Shipping Telecommunication Article178 (1) TheGovernment is responsible to keepthe safetyand securityof shipping by operating Shipping Telecom­ munication in accordance with the development of in­ formation andtechnology. (2) Theoperations of ShippingTelecommunication referred to in sub-artide(1) mustmeet requirements andstan­ dardsin accordance with provisions of statutoryregu­ lations. (3) The procurement of Shipping Telecommunication as part of the operations referred to in sub-article (2) maybe performed by business entitles. (4) Shipping Telecommunication procured by the business entitiesreferred to in sub-artide(3) shallbecontrolled by theGovernment. (5) Thebusiness entitiesreferredto in sub-article (4) are obligedto: a. maintainand treat the Shipping Telecommunica­ tion; b. ensurethe reliabilityof Shipping Telecommunica­ tion with stipulated standards; and c. reportthe operations of Shipping Telecommunica­ tion to the Minister. Article179 The operations of Shipping Telecommunication shall be executed by officers meeting requirements on health,education andskillprovedby certificate. Business News7695/8-1-2006 BA Article 180 Everyperson are prohfb(ted to damageor to take any actionwhatsoeverlikely to causethe malfunction of Shipping Telecommunication as well as facilitiesof ship­ ping laneson the sea, riverandfal<.e. Article 161 (1) Owners and/or operators of shipsare responsible on anydamageof ShippingTelecommunication and ob­ stacles on the sea, riverand lakecaused by the opera­ tion of their ships. (2) Theresponsibility of the ownerand/or operatorof ship as referred to in sub-article (1) is in the form of an obligationto immediately repair or replace it so that suchfacilitiescanfunction properly. (3) Therepair and replacementreferred to in sub-artide (2) shallbe performedwithin a time limit of 60 (sixty) calendar daysfrom the time the damageoccurred. Article 182 (1) Ships sailingon Indonesianwaters are charged with costson the utilization of Shipping Telecommunication constituting StateNon-Tax Income. (2) COsts on the utilization of Shipping Telecommunica­ tion shallbe imposedon all ships. Article 183 (1) TheGovernment mustprovideservices ondangercom­ munications, immediate andsafetycommunications as W4;'11 as standardtime signalbroadcasts. (2) Furtherprovisions on the services on dangercommu­ nications, immediate andsafety wmmunications aswell asstandardtime signalbroadcasts referredto in sub­ article{3}shall beregulatedwith a Government Regu­ lation. Article 194..•.. Artic\e 184 Furtherprovisions on the operations of Shipping Telecommunication shallberegulated with a Government Regulation. Part Three Hydrograph and Meteoroldgy Article 185 TheGovernment performs hydrograph survey and mapping to up-datedataof shipping manuals, sea-maps, and riverand lakeshipping maps. Artide 186 (1) TheGovernment mustprovidemeteorology services, covering among others: a. provision of infonnation onthecondition ofweather and SAAand its estimates; b. calibration andcertification.of weatherobservation equipment on board;and c. technical guidance on the observation of weather at sea to certain ship'Crew to support inputs of me­ teorology data. (2) Furtherprovisions on meteorology services asmeant inparagraph (1) shallbe regulated with a Government Regulation. Part Four Lanes andCrossings Article 187 (1) Lanes and crossings consist of : a. shipping lanes at sea;and b. riverand lakeshipping lanes (2) Theshipping lanesreferred to in sub-article (1) shall beset forth in sea-maps and shipping manuals, and shall beannounced bythe authorized agencies. (3) Lane dassifrcation criteriaare stipulatedon riverand lakeshipping lanes. Business News7695/8-1-2008 9A (4).Thestipulation.of riverand lakeshipping lanedassifi­ cationcriteriaismadeby observing the recommenda­ tionand technical considerations of the Ministercon­ osmad. Artide 188 (1) Theoperations of shipping lanes areperfonned by the Government (2) Business entitiesmay be included in some of the op­ erations of shipping lanes; (3) Forthe operations of the shipping lanes referredto in sub-ertide (1), the.Govemment must: a. stipulatestJipping lanes; b. stipulateroutesystem; C. stipulatetrafficking procedure; and d. stipulate shipanchorage areasaccording to its pur­ pose. Article189 (1) In order to build and maintain shipping lanes and for otherpurposes, dredgingworks shall be performed by fulf~ling technical requirements. (2) The technical requirements referredto in sub-article (1) covers: .e. shipping safety; b. preservation of the environment; c. spatiallayoutof waters; and d. irrigation arrangements for works in rivers and lakes. Article190 (1) for the purpose of safety andeXpedition of sailingon certainwaters, the Governmentshall stipulate a route system CDvering: a. diagramof seatraffic separators; b. two-wayroutes; c. suggested lineof direction; d. deeD .•..• d. deep water route; e. areastobeavoidedj f. hinterlandtrafficilIreas; and g. areas to be aware of. (2) Thestipulation ~ the route system referredtoin sub­ artk:le {t} shan be based on: a. condition of the shipping lanes; and b. considerations of baffic volume. (3) Theroute systemreferredto in sub-artlde (1) should be Inserted in sea-maps and shipping manuals and announced by the authorized agencies. Article 191 Traffic procedure on water is executed based on provisions of statutoryregulations. Artide192 Every'shipping lanemust be equipped withShip­ ping Navigation AId Means and Shipping Tekmmmuilica­ tion. ArtIcle193 (1) During cruising, captains mustobeyprovisions related with: a. traffic procedure; b. shipping lanes; c. route system; d. areaof shipping ofship traffic; and e. Shipping Navigation AidMeans. (2) captains sailing on certain areas of the Indonesian watersareobliged to report all information thru the nearest ShoreRadio Station (SROP). Artide 194 (1) TheGovemmentstipulates the Indonesian Archipelago sea Lanes and procedure of its usage for crossings that are continuous, direct and fastest in nature for foreignships passing throughIndonesian waters. Business News 7695/8-1-2008 lOA (2) Thestipulation a the Indonesian Archipelago sea Lanes referred to in sub-article (1) is madebyobserving: a. national resilience; b. shipping safety; c. exploration and eKpIoltation of natural resources; d. cablelinesand sea-bed pipes; e. conservation of naturalresources andthe environ ment; f. routesusually usedfor international shipping ; g. marine layout; and h. recommendations of international organizations having theauthority. (3) All foreign ships usmg the Indonesian Archipelago Sea Lanes in its cruise shall not deviateexceptin emer­ gencies. (4) TheGovernment controlsforeignshiptraffic crossing the Indonesian Archipelago Sea Lanes Artide 195 For the Bakedsafety shipping in Indonesian wa ters: a. the Government stipulates and announces seturity zones andsafetyzones at eacn cll.;Uvity location likely to disturb safetyof shipping; b. Anyconstruction, removal and/ordismantling of build­ ingsor installation must fulfill safety requirements and mustget a permit from the Government; c. Any building or installation referred to in letter b not used any more must bedismantled by the owner of the bUildings or installation; d. Thedismantlingreferred to in letter c should be per­ formed according to prevailing provisions andmust re­ ported to the Government to beannounced of; and e. Owners or operators going to constructbuildings or installation asmeant in letter c must providea guar­ antee. Artide 196 ....• itA Arijde 196 Furtherprovisions on procedureand requirements onthe stipulation of lanes andcrossings shallberegulated with a Government Regulation. Part Five Dredging andRedamation Article 197 (1) .Forthe sakeof,shipping safely and security, the de­ signandworkson the dredgingof shippinglanesand portpools, andreclamation must receive a permitfrom the Government. (2) Workson the dredgingofstipplng lanes andportpools, andreclamation shall be performedbycompanies hav­ ing the capabilityandcompetence and provedby cer­ tificateslssuedbythe agendeshavingthe authority in accordance with provisions of statutory regulations. (3) Further provisions on the design and works on the dredging of shipping lanes, port pools, reclamation and certification of workperformersshallberegulated with a Government Regulation. Part Six SCouting Article 198 (1) Forthe sakeof shipping safety and security, and the expediting of trafficking on w.;lters and in the port, the Government stipulatescertain water areasasmanda· tory scouting waters and extraordinaryscoutingwa· ters, (2) Any shipsailingthru mandatory scoutingwaters and extraordinary scouting waters had to use scoutser­ vices. (3) Thescoutoperations are performedby PortAuthority or PortOperatorUnits,and may be delegatedto Port Business Entitiesthat meet determinedstipulatedre­ quirements. BusinessN~ 7695/8-1-2008 (4) The scouting operation referred to in sub-article (3) shClII be charged with costs. (5) In the eventthe Government had not yet provided scout services inthe mandatoryscouting watersandextreor­ dinaryscoutingwaters; the managementand opera­ tions of scout services may be delegatedto the man­ agementof a special terminal meetingdetermined re­ quirements andhaving received a permitfromthe Gov emment•. (6) The scoutingcost referred to in scb-artkle (4) is ex­ emptedfor: a. Battleships;and b. State shipsusedfor governmentalduties. Article 199 (1) Scouts are obliged to meet requirementson health, skill, educationand training provedwithacertificate. (2) Thescoutsreferredto in sub-article (1) must perform their dutiesbased on shipping safetyandsecurity stan­ dards. (3) SCouting on a shipdoes not reducethe authority and responsibility of the Captain. Article 200 Managementof special terminalsor PortBusiness Entities managing and operating scouting services, are obligedto pay a certain percentageof their incomefrom scoutingservk:es to the GovernmentasNon-Tax state Rev­ enue. Article201 Further provisionson the stipulation of scouting waters, requirementsand qualificationof scouts, and the operationsof scouting shall be regulated with a Minister Regulation. Part5eyen ...•. Part5even Ship's Body Article202 (1) Shipowners and/or Captains are obligedto report its ship'sbodyto the agencies havingthe authority. (2) Ship's bodies referred to in sub-article (1) where its positionsdisturb shippingsafety, shall be providedwith Shipping Navigation Aid Meansas marksand shallbe announced byagendeshavingthe authority. 12A-' PartEight Salvage and Under-waterWorks Article 204 (1) Salvage actiVities are madeon ship's body and/or its. ~ contentsencountering an accidentor sunk. (2) Anysalvage activity and under-waterwork. must have a permit and must meet technical requirements on shippingsafetyand security from the Minister. Article203 (1) The ship owner is obliged to remove the ship's body and/or its contentsdisturbingshippingsafetyand se­ runty no later than 180 (one hundredeighty)calendar daysfrom the date the shipsunk, (2) TheGovernment shalll!ft,. remove, or destroythe ship's body and/or its contents in whole or in part on the expense of the owner If in the time limit stipulatedby the Government, the owner did not carry out his re­ sponsibilityandobligationreferredto insub-artide(1). (3) Ashipowner negleetinq to carryout hisobligations in the time limitstipulated bythe Government referred to in sub-article(1) causing shippingaccidents, must in­ demnifythe party encountering suchaccident. (4) TheGovernment shalltransportandcontrol the ship's body and/or its contentswhoseownerwasnot known in the stipulatedtime limit. (5) To assurethe performanceof the obligation referred to insub-articles (1) and (2), ship ownersmust insure their ships. (6) Furtherprovisions on the procedureand requirements of removing ship's body and/or its contents shall be regulatedwith a Mini5terRegulation. Business Ne\'llS 7695/6-1-2006 Artide205 Further provisionson the procedureand requirementsof salvageand under-water worksshall be regulatedwith a MinisterRegulation. PartNine AdministrativeSanctions Article 206 (1) Any personviolating the provisionsreferred to in Ar­ ticle 172 sub-Article (6), Article 178 sub-Article (5), Article 193sub-Article(2), Article 19B sub-Article (2), or Article 200will be imposedof administrativesanc­ tions in the form of: a. Warning; b. freezing of permit or certificate; c. Revocation of permit orcertiflcafu. (2) Further provisionsan the mechanism and procedure of imposing the administrativesanctions referred to in sub-Article (1) and sub-Article (2) shall be regUlated with a Government Regulation. CHAFtrER XI...n' 13A QiAPTERXI HARBOR~MA5TER PartOne Function, Duties andAuthority of Harbor-master Article 207 (1) Harbor-masters perform functionsof shippingsafety andserurtty covering the performance, supervision and lawenforcementin the fieldof water transportation, portaffairsandmarineenvironmentprotection. (2) Otherthanperfonningthe functions referredto in sub­ artide (1), Harbor-masters shallassistthe performance of search and Rescue (SAR) in ports in accordance with provisions of prevailing statutory regulations. (3) Hamor-masters are commissioned bytheMinisteraf­ ter meeting requirements on competence in the field of shippingsafety and securityand port affairs. Artide 208 (1) In the performance of shipping safetyand security func­ tions asmeantin Article 207 sub-article(1), the Har­ bor-master tHIS the fullowing duties; a. supervising thesea-worthiness of ship,safety and security andorder in the port; b. supervising the orderliness of ship traffic in port waters andshippinglanes; c. supervising transfer of cargo activities in port wa ters:r d. supervising salvage activities and under-water works; e. supervising tugging; f. supervising scouting; g. supervising loading and unloading of hazardous goodsand hazardous andtoxic substance wastes; h. supervising re-fuellng; f. supervising the orderliness of embarkation and dis­ embarkation of passengers; ). supervising dredgingand reclamations; Business Ne¥6 7695/8-1-2008 k. supelVising activitiesof construction of port fadli ties; I. perfonning aid on search and rescue; m. leadingthe tacklingof pollutionandfire fighting at the port; and n, supervising the performance of marine environment protection. (2) In the perfonnanceof law enforcementin the field of safetyand security referred to in Article 207 sub-ar­ ticle (1), the Harbor-master performsdutyas an In­ vestigatorOfficial of Government CivilServants inac­ cordance with provisions of prevailingstatutory regu­ lations. Article 209 In the performance of the functions and duties referredto in Article207 end Article 208, the Harbor-mas­ ter hasthe authority to: a. coordinate allgovernmental actiVities at the port; b. check andkeep shipletters, documents, and news; c. issueapproval on shipactivities at the port; d. perform checks on ships; e. issue Shipping Approval letter; f. checkship accidents; g. detaina ship on a court's order; and h. perform certifrcation of shipcrews. Article210 (1) In order- to performthe shipping safety and security functions referred to in Article 207 sub-article (1), a Harbor-masterInstitution shall be formed. (2) further provlsions on the establishment of the Harbor­ master Institution referred to in sub-article (1) shall be regulated with a Government Regulation. PartTwo coordinationof GovernmentActIvIties in a Port Article211 (1) Harbor-mas1Ers holdtop authority in the performance of coordination ofcustoms, immigration,quarantine, and other-governmental activities. (2) The coordination exercised by the Harbor-master as referred to in sub-article(1) is in thecontext of super­ vision and lawenforcement in the field of shipping safety andsecurity. 14A (3) After making the checks referred to in sub-article(2), the ship's letters, documentsand newsshall be kept by the Harbor-masterto be returned simultaneously with the issuance of the ShippingApproval Letter. (4) Furtherprovisions on the procedureof ship'sarrival notification,checks, submission and storageof ship's letters, documents and news referred to in suo-at­ ticles (1), (2), and (3) shall be regulatedwith a Minis­ ter Regulation. ArtIde 212 (1) In the performance of security and order in the port according to provisions of international conventions, the Harbor-master actsas PortSecurityCommittee. (2) In the performance of the function referredto in sub­ artlde (1), the Harbor-master b duUlQrized to request for assistance from thePolice of the Republic of Indo­ nesiaand/or IndonesianNationalArmy. (3) Thesecurityandorderassistance in aport referredto in sub-artide (1) is under the coordinationwithin the authorityof the Harbor-master. (4) Further provisions onthe procedure of the performance of securityand order and request for assistance in a port referred to in sub-artides (1) and (2) shall be regulated with a Government Regulation. PartThree Checking and Keeping ShipLetters, Documents and News Article 213 (I) Ship owners, Operators, or Captainl:i are obliged to notify the arrival of its ship at a port to the Harbor­ master. (2) Any shipenteringaport mustsubmitthe ship's letters, dooJments and newsfor checking to the Harbor-mas­ ter promptlyon the shipsarrival ell eI port. Busille$ fo,I~7695/8-1-2008 Article214 captains must fill-in, signand submitship'snews to the Harbor-masteraccordingto the farm stipulated by the Minister. Artide215 Anyship entering a port, when it is in the port, andat the time of departurefrom the port are obliged to obey regulations and execute all directives ond instruc­ tionsof the Harbor-masterfor the sakeof expeditingship traffic andactivities in the port. Part Four Approvalon Ship'sActivitiesin a Port Article 216 (t) Ships undergoing repairs, saHing trials, transferof load activities in port pool, tugging, and loading and un­ loadingof hazardous goodsmust receiVe an approval from the Harbor-master. (2) salvage, under-waterworks, re-fueling, dredging,rec­ lamation,and port constructionactivitiesmust be re­ portedto the Harbor-master. (3) Further provisions on the procedure to receive the approval and on reporting referred to in sub-artide (1) andsub-artkle (2) shallbe regulated with a Minis­ ter Regulation. PartFive.... lSA PartRve Ship01ecking ArUde217 The Harbor-master hasthe authority to execute checbon the sea-worthiness and security ofships at port. Article218 (1) In certaincases, a Harbor-master has the authority to execute checks on the sea-worthiness andsecurityof ships ftying Indonesian flag in the port. (2l Harbor-masteIshave the authority to executechecks on the sea-worthiness and securityof foreign shipsin the port in accordance with provistons of prevailing statutoryregulations. (3) Fwthef provisions on the procedured checking ships asreferred to in sub-artides(1) and(2) shallberegu­ latedwith a Minister Regulation. Part Six Shipping Approval Letter Artide219 (1) Any9hipthat.sailsmust:ha...e iJ ShippingApprov31let­ ter issued by the Harbor-master. (2) ShippIng Approval Letter is not validif in a period of 24 (twenty four) hoursaftecthe issUance of the Shipping ApprowI Letter, the ship did notdepartfrom the port. (3) The ShIppIng Approval U:tter referred to in sub-artide (1) shatl not be issued to aship or shall be revoked If the prOYisIons refem!d to in Artide44, Article 117sub­ artide (2), Artk:Ie 13Qsub-artide (1), Article 134 sub­ article (1), Article 135, Article14<}sub-artide{2), Ar­ tk:Ie169 sub-article {l}. ArtIde 213sUb-artide(2), or Art:icIe 215areviolated. (4) The Harbor-master is authorized to detain the depar­ tureri a shiptosail if it didnotmeetthe requirements onsea-worthiness orduetoweather consideration. BusinesSNev.1s 7695/8-1-2008 (5) Furtner ptUlIIsian5 ontb!~«the isl'iuanced S1'lil'I*'!J Appnwal letter refer1"ed to in sub-artide (l) shaI be reguliit.ertwit! a MinisIEr Regulation. Part Seven Preliminary Check ofShip Acddent Article 220 (l) Harbor-masters shall petform checks on every ship accident to find infonnaOOn and/orpreliminay evidence of the ship accidMt. (2) The shipaa:ident check refened to in sub-article (I) is a prelimillary check ArticIe22l (1) Preliminary check of shIp accidentflying Indonesian flag in Indonesian territorialwatersshaN be performed by a Harbor-master or an appointed government om­ dal. {2) Preliminary check of ship accident flying Indonesian "ag beyond IndonesianterJitoJial watersshallbe per­ formed by a Harbor-master or an appointed govern­ ment official after receivinga report on ship ao::ident from the Representative of the Republic of Indonesia and/or theauthorizedgovernmentofficialof the local rountry. (3) Resultof the preliminary check referred to in Article 220 may be forwarded to a Shipping Court for ad­ vanced checks. Part-EIght Ship Detainment Article 222 (1) The Harbor-mastermayarrest a ship in the pononly by a court's order in writing. (2) The detainment of ship due to the written court's or­ der referred to in sub-article (1) is authorized to be perfonned by reasons of: a,The ..... 16A a.The relatedship-ig·tonnettedwftttifcnmrnal case; ()I' b.Thel1elatedshlp lsmnnectedwittl a'cM! case; Al:tlcle'223 (1) Shipdetainmentorderby,acourt Ina civilcase in the fonn of shippingdaimshcdl beperformed withoutany i:laim, prQl:e:SS. (21 Furthefprovisions:oostlip:detairunentpn:lC2(lure in port as meant in sub-article (l)shall beregu~,with a MinisterRegulation. PartNine certificationofShip Crew Article224 (1) Any person working on.aship in anypositionwhat5o­ ever must have acompetence.sailQrJ:locuments, and certifJed by a Herbor-rnaster, (2) The certification ofShip crew referred to insub-art1c1e (l) shall bemade in the followingphaS:eA: a, signing of marine workagreement by thesailorand the marinetransportcompanies acknowledged by the Harbor-master; and b. based on the signing of the marine work agree­ ment,the caplain set out the nameandpositionof the ship crew according to his comoetenceln a certifICation booklegajizedbythe Harbor-master. PartTen Administrative sanctions Artide225 (1) Any person violating the proVisions referredto in Ar­ ticle 213 sub-Article(t) or sub-Article (2), Artide 214 orArtide 215shan be iiTlposedofadministrative sanc­ tions intile form of: 11', Warningj b. Freeiingof permit or certmcate;or c. Revocation of permit. B1JsineSS~ 7695/8-1-2008 (2) Furtherprovisions on the mechanism and procedure of imposing admlnlsfrative sanctions referred to insub­ Article (1)shall berequletedwith a Government Regu­ ration. CHAPTER XII MARINE ENVIRONMENT PROTECTlON PartOne Pertormers'ofMl'l'rin~EnvlronmenfprotediOn Artlde226 (1) l'hecperatiOtls: at: ffiahrie et1Vlronment protection is exerosetHrfthe GoVel'nri'l@Ilt (2) Thf:opemlOllSof marirte'eRVlfOriment protectionre­ ferred to in sub-article(l}isexerdsedthru: (t;j)£eventtonand taeldingOf,'poIll1tiOntrom ships' op­ erati011S;:and b. prevention ~llcLtacklin9'ofpol1utionfrom port ac­ tivities. (3) Besides the preventiOrtam::l taCkling referred to in sub­ article (2),.,martne enviI:Qrunentprotectlon shall also be performedon: a. wastedispo5ill in waters; and b. scrapping of.ships. Pi'rtTWO Prevention andTackling of Pollution from the Oper..,tipns ofShips Article 227 Every Ship,Crew is obliged to p.revent and tackle the occurrence of pollutionof. the.environment originating from the ship. Article228 (1) Ships of certain typesand measurement that are op­ erated must be equippedwith equipment and sub­ stances that hadbeen legalized by the Government for the cackling of 011 pollutionfrom the ship. (2) Ships ..... 17A (2) Ships of<;:ertain types and measurementbeing oper­ ated must be eqUipped wltt1 a petrern that had been legillzed bytheGoVernment: for the tacklingofoil pol­ lution frQm theship. A~Ug (1) Every ship Is prohlblted to dispose of waste,ballast water,dirt,. garbage andhJUlrdo\.ls andtoxicchemi­ calsu~nces to the waters. (2) In the event thedisposal range,disposal volume and dlspollQl quality hed been inaccordance with require­ ments stipulated inac:eardance withprovisions of pre­ vailingstatutoryregulations,the provisionof sub-sr­ tide(l) may beexempted. (3) Every snipisprohibitedto emitexhaust gas exceeding the thre!ihoId~ to provisions of prevailing statu­ toryregulatiOns. Artide230 (1) Everycaptainor responslble partyof otheractivity units onwaters shallberesponslijle totackle poPution 0rigi­ nating from )lIsshipand/or actiVities. (2) Every captainor responsible partyofotheractiviI.y units onwaters must immediately reportto the nearest Har­ bor~ ard/or the nearestother governmentele­ ments on theMIlt ofpollutiQn of waters caused by hisshipor hIS actiVItIeS, If heknowsthe JXlllution from hisshipand/orother activities on the waters. (3) TheotherGovernment elements who l'eC@ived the in­ formation referred toInsub-artide (2) should forward the report on the occurrence of the water pollutionto the nearest Harbor-master or to authol1zed agencies. (4) The nearest Harbor-mastershall forward the report referred to Insub-article (3) to authorized agencies forfurtheractions. Business News 7695/8-1-2008 Article 231 (1) The owner or operator of a ship shall be responsible on pollutionoriginating from hisship. (2) In order to fulfill the responsibility referred to in sub­ artide (l), the owner or operator of a ship must in­ surehis obligation. Artide232 Further provisions on prevention and tadding p0l­ lution due to the operations of ships shall be regulated witha Government Regulation. ArticJe233 (1) Trensportatlon of waste~ of haz<lrdous and toxic sub­ stances by a ship must observe the specification of shipsentitled to transport wastes. (2) Specificationof the ship referred to Insulrartide (1) andprocedure for thetransportationof wastesof haz­ ardous andtoxicsubstances must fulfill requirements stipulated by theMinister. (3) Ship!: transportingwastes of hazardous andtoxic sub­ stancesmusthave operational standardsand emer­ gency response procedure in accordance with provi­ sions of prevailing statutory regulations. Part Three Prevention and Tackling" Pollution from PortActIvities Artide234 Theoperationsof ports mustfulfill requirements to preventthe existenceofpollution originatingfrom port activities. Article 235 (1) Every port must meet the requirementsof pollution tack.ling equipmentaccording to the volumeand type of actiVity. (2) E'ie!y ",,' (2) EvelY port must fulfill requirements of pollutiontack­ ling substand! according to the volume and type of activity. (3) Port Authorities must possess emergency response standardsandprocedure in aa:ordance with provisions of prevailing statutory regulations. t8A (2) Thewastedisposal referredto in sub-article (1) must be reportedto the institutionhaving the duty andfunc­ tions in the field of seaand coastguard. Article 240 Further provisions on waste disposal in waters shallbe regulated with a Government Regulation. Artide236 Port Authorities, Port Operator Units, Port Busi­ ness Entities, and special terminals management are obligedto tacklepollutioncaused by port operations. Artide237 (1) Toaccommodate wastes from ships in a port, the Port Authority, Port OperatorUnit, Port Business Entities, andspecial terminals managementareobliged to and areresponsible to prepare wasteaccommodation fa­ dlities. (2) Wastemanagement shallbeexecuted in accordance with provisions of prevailing statutory regulations. (3) Waste transportation to collecting, processing, and fi­ naldestruction places shall be executed based onpro­ visions stipulated by the Minister responsible in the field of the IMngenvironment. Article 238 Furtherprovisions on prevention and tackling of pollutionat ports shaH be regulatedwith a Government Regulation. PartFour Waste Disposal in Waters Article239 (1) Waste disposal in waters may only be performed at certain locations stipulatedby the Ministerand must meet certainrequirements. BusinessN~ 7695/8-1-2006 Part Five ShipScrapping Article 241 (I) Shipscrapping mustfulfill the requirements on I1llJrine environmentprotection. (2) Location of the scrapping of ships referred to In sub­ article(1) isdeterminedby the Minister. Article 242 Reql.iirements of marineenvironmentprotection forthescrapping of ships referred to inArticle 241shan be regulated with aMinisterRegulation. PartSI>: Administrative sanctions Article 243 (1) Anyperson violating the provisions referredto in Ar­ ticle 230 sub-Article (2), Article 233 sub-Article (3), Article 234,Article235, or Article239sub-Artide(2), shall beimposed of administrative sanctions intheform of: a. Warning; b. Administrative fine; c. Freezingof permit; or d. Revocation of permit. (2) Furtherprovisions on the mechanism and procedure of imposing the administrativesanction referredto in sub-Article(1) shall be regulated with a Government Regulation. CHAPTER W ......... 19A 0iAP1'ER xm SHIPACODENT ANDSEAAOiANDRESOJE PartOne Danger to Ships Article 244 (1) Danger to ships ancl/orhuman isaneventendanger­ ing the safetyofshipand/or humanlife. (2) Any person who is awareof the event referred to in slJl)-artide (1) must immediately take preventive, search and rescue actions, andreporttheeventtothe nearest authorized offidalor to otherparties. (3) Czlpmins are obliged to take preventive actions and to disseminate the newsto other parties ifheknewthat hisship, otherships or anyperson are in danger. (4) Captains are obliged to reportthe dangerreferred to insub-artide (3) to: fl. the ~restportHarbor-master if the dangerex­ istsinIndonesian telTitorial waters; or b. Representative Official oftheRepublic ofIndonesia and governmentofficial of the localcountry if the danger exists beyond Indonesian territorial waters. PartTwQ Ship Acddent. Article245 Aship.accident isaneventendangering the safety of shipand/or humanlife in the folTI1 of; a. Ship issunk; b. Ship isonfire; c. ShipcoJUdesi and d. Ship Isstranded. Artlde246 In the event d the ship accident referred to in Article 245,anyperson on boardknowing abouttheacci­ dent, within the limitsof hiscapability should provide aid and report the accidentto the captain and/or Ship Crew. Business News7695{8-1-2008 Article247 captaIns knowIng aboutanacddentonhis ship or otherships areobliged to report it to: a. the nearestportHarbor-master jf thedanger exists in Indonesian territorialwaters;or b. Representative Offidalof the Republic d Indonesia and government official of the local country if the danger existS beyond Indonesianterrttorialwaters. Artide 248 Captains knowing aboutanaccidenton hisshipor other ships are obliged to report to: a. the nearest portHarbor-master ifthe danger exists in Indonesianterritorial waters; or b. Representative Official of the Republic r:i Indonesia and governmentoffidal of the local countryif the danger exists beyond Indonesian territorial WlIters. Artide249 Theshipaccident referred to in Article 245shall bethe responsibilityofthecaptain unless it canbe proved othelWise. PartThree Shipping Court Artide250 (1) Shipping Court is formed by and is responsible to the Minister. (2) Shipping Court hasanorganization structure andpro­ cedure stipulated witha Minister RegulatiQn. Articie2S1 The Shipping Court referred to In$ub-artlde (l) hasthe functionsto pelfarmadvanced cneos on shipac­ cidents, andtoenforce profession ethiccodes andcompe­ tence of a Captain and/or shipofficers after preliminary checks performed by a Harbor-master. Art!cIe:252 .••• , 20A Article252 TheShipping Courthasthe authoritytocheck col­ lisionsbetween merchantshlpsand merchant ships, mer­ chantships andstateships, andmerchant ships with battle ships. Artide253 (1) In the performance of the advanced checks on ship accidents referred to in AItlcle 251,theShipping Court hasthedutiesto: a. scrutinize causes of a ship accidentand to deter­ mine whetherthere are any fault or negligence in the implementation of sailorprofession standards committed bythe Captain and/orshipofficers lead­ ing to the occurrence of the shipaccident; and b. rerommend to the Ministeron the imposing of ad­ ministrative sanction to the fault or negligence of the Captain and/or shipofficers (2) Theadministrative sanctions referredto in sub-artide (1) letter b is in the form of: a. Warning; or b. Temporary revocation of SailorProfession certifi­ cate. Article 254 (1) In the advanced checks, the Shipping COurt is autho­ rized to request the attendance of government om­ dais in the field of shipping safety and securityand otherrelated parties. (2) In the advanced checks, the owner or operator ofthe shipshould makethe Captain and/or ShipCrew to be present. (3) The owneror operatorof a shipwhoviolates the pro­ visions referred to in sub-article(2) shallbe imposed of sanctions In the form of: a. Warningi b. Freezing of permiti or c. Revocation of permit Article 255 Further provisions on the functions, authority, and dutiesof the ShipPing Court,andthe mechanism andpro­ cedureof imposing the administrativesanction shall be regulated with aGovernment Regulation. Business News7695/B-l-200B PartFour Investigation of Ship Accident Article256 (1) Investigationof ship accidentis executed bVthe Na­ tional Committee on Transportation Safety to find facts in order to prevent the occurrence of ship accident with similarcauses. (2) Theinvestigation referredto in sub-artide(1) shallbe performed onany shipaccident. (3) Theinvestigation performed by the National Commit­ teeonTransportation Safety referredto insub-article (1) isnot to determinethe fault or negligence causing the ship accident Article257 Furtherprovisions on the duties of the National COmmittee on Transportation safety and procedure on checking and investigation of shipaccidents shall be regu­ lated with a Government RegUlation. Part Five searchand Rescue Article258 (1) The Government is re5ponsible to perform search and rescue of ship accidents and/or peopleencountering disasters in Indonesianwaters. (2) Ships or aircrafts close to or passing by an accident location areobligedto help search and rescue efforts onany Ship and/or person encountering disasters in Indonesian waters. (3) Anyperson havingor operatinga shipencountering a disaster shall be responsible to perform search and rescue for Itsship'saccident. Article 259 Responsibility on the performance of search and rescue by the Government as meant in Artide258 sub­ article (1) shallbe coordinated andexecuted by the insti­ tution responsible in the field of search and rescue. 21A Artide 260 Furth~r provisions on search and rescue shallbe regulated withaGovernment Regulation. Q-1APTER XlV HUMAN RESOURCES Article 261 (1) The opermions and development d human resources in the field ofshipping are perfunned with the purpose of supplyinghuman resources that are professional, competent, dlsq:>lined, and responsible as well as meeting nationalandintemalional staooards. (2) The operations and development of the human re­ sources referred to in sub-article(1) cover planning, research and development,education and training, placement, developmentof job markets,and exten­ sionof business opportunities. (3) The operations and development of the human re­ sources referred to in subarbcle (1) is performed on govemmentapparatus and the public. (4) Thehumanresources in the field of shippingreferred to in sub-artide (I) rovers: a. humanresources In the field of water transporta­ tion; b. humanresources in the field of port affairs; C. humanresources in the fieldof shipping safety and securtty; and d. human resources in the field of marine environ­ ment protect:lon. Artide 262 (1) Education andbaining in the fieldof shipping referred to in Artide 261 sub-article (2) is performed by the Government, the regional governments, or the public thru formaland informaltracks. (2) The formal education track referred to in sub-article (1) shall beperformed in middle and high education levels in acmrdance withprovisions of prevailing statu· tory regulations. (3) The lnfonnaleducation track is training institutionsin the fonn of education and trainingworkshops in the fieldof shipping. Bu:5lnessN~ 7695/8-1-2008. Article 263 (I) Education andtraining in the fieldof shipping referred to in Article 261 sub-article (2) is the responsibility of the-Governrnent; where·in its guidance isexerdsed by the Minister andthe minister responsible in the field of nationaleducation in accordance with hisauthority. (2) TheGovernment and the regional governments shall direct,guide,supervise andassistthe performance of education andtraining in the fieldof shipping inaccor­ dancewith provisions of prevailing statutory regula­ tions. (3) Thepublichas the obligationsto providesupport re­ sources for the conciJct .otshipping education and train· ing. Article264 (1) Theeducation and trainingof humanresources in the field of shipping referred to in Article 261 sub-article (2) shall beool1Jpiled inaneducation andtraining model stipUlated by the Minister. (2) The education andtraining model referred to in sub-­ article (1) shouldcontainat least: a. Typeand levelof ecIucation and training; b. Partidpantsof education andtraining; c. Rights andobligationsof education and training; d. Curriculum andmethodof education andtraining; e. Instructors and trainers; f. Means and infrastructuresof educationandtrain­ Ing; g. Standardization of the performance of education andtraining; h. Costs of educationandtraining; and l. Supervision andcontrol on edl.lCiltion and training; Artlde265 The Government and the.regional governments areobligedto provideservices andfadtities,andshallen­ surethe performance of a qualifiededucation andtraining In the field of shippingfor all citizenswithout discrimina­ tion. Artide 166 .•... Artide266 (1) WatertransportatiOn companies are obliged to pro­ videfacilities for shipping practices on shipsto improve the Quality of human resources in the field of water bansportatlon. (2) Water transportationcompanies, Port'Business Enti­ ties, andrelated agencies are obliged to providefacili­ ties for practices in ports or in its actiVity locationsto improvethe qualityof humanresources in the flElld of water transportation (3) Water transportation companies, orgahizations, and business entitiesreceiving benefits from shipping pro­ fession services are obliged to provide contributions to supportthe availabilityof qualifiedsailors. (4) Theconbibutionreferred to in sub-article (3) is in the form Of: a. granting scholarships; b. bUildingeducationinstitutions according to inter­ nationalstandards; c. cooperatfng with existing education institUtions; amI or d. procuring simulator sets, books, and up-to-date maritimebulletins. Artide267 Anyperson violating the provisions referredto in Artide 2GG sub-Article (1) or sub Article (3) shall be im­ posed ofadministrative sanctions in the fonnof: a. Warning; b. AdministratIVe fine; c. Freezing of permit; or d. Revocation of pennit Article 268 Further provisionson the OperatiOflS anddevelop­ ment of humanresources.jts procedure, and the proce­ dureof imposing administrative sanctions, andthe amount of administratiVe fine shall'be regulated with a Govern­ mentRegulation. Business News7695/8-1-2008 22A CHAPTERXI/ SHIPPING INFORMATION SYSll:M Artide 269 (1) Shipping information system covers the collection, pre­ cessing, analysis, storage,presenting, anddissemina­ tion of shippingdata and informationto: a. SUppor:t: shippingoperations; b. Improve services to the communityor public;and c. Support the formulation'of policies in the field of shipping. (2) The shipping information system referred to in sub­ artide (1) isoperated by the Government andthe re­ gionalgovernments. (3) Theregionalgovemmentsoperate the shipping infor­ mationsystemin accordance with its authority based ongUi~ines and standards stipulated by the Govern­ ment. Article270 The Shipping Information System referred to in Artide 269 covers: a. Water transportation information systemcoveringat least: i. water transportation business andactivities; ii. armadaand spacecapadty of nationalships; iii. ship'sloadand segmentof nationalship load; iv.business and activities related with water trans portation; and route of water transportation. b. Port informationsystemcoveringat least: i.. Depthof lanesandport pool; ii. Capacity andconditionof port fadlmes; iii. Flowof containers, goodsand passengers in port; N. Rowof ship traffic in port; v. Performance of port; vi. Terminal operator in port; vii. Portservices tariff; and viii. PortMasterPlan and/or-portdevelopment. c. Shipping .. 23A c. Shipping safetyand security information systemcov­ eringet least: i. Condition of wind, current, wave andtide; ii. capacity ofShipping Navigational AidMeans, Ship­ ping Telecommunications, and lanes and cross­ ings; iii. state shipsin the flE!Id of shipping safety and se curity; iv. Humanresources in the field of seamanship; v. Ust of shipsflying theIndonesian flag; vi. Shipbodiesin Indonesianwaters; vii.Shipaccidents; and viii. Shiptraffic in the waters. d. Marine environment protection information system coveringat least: i. Existence of undelWaterconstructions (sea cables and sea pipes); iI. wastedlsposal locations;and iii. ship-scrapping locations. e. information systemon human resources and partid­ patianof thepublicin the fieldof shippingcoveringat least: i. number and competence of human resources in the field of shipping; and ii. policies issued by the Govl?rnment in the field of shiPPing. Article 2.71 Theperformance of Shipping Information System iscarriedout by buildingand developing an effective,effi­ dent andintegratedinformationnet involVing relatedpar­ ties thru the utilizationofinformation andtelecommunica­ tion technolOgy. Article 272 (l) Any person performing activities in the field of ship­ pingareobligedtosubmitdata and informationof his activities to the Governmentand regional governments. Busi~NeNS 76QS/B·1-200B (2) The Government and regionalgovernments shallper­ form up-datlngof data and information perIOdically to get data and information that are in accordance with requirements, accurate,up-to-date,andaccountable. (3) Shipping data and infonnation shall be documented and published, and can be accessed by the public in IJt:tI..I thru the utlllzetion <if lnformatlon and tetecom munication technology. (4) Management of ShippingInformation System by the Governmentand regional governmentsmay be per­ formed thru cooperation with other parties. (5) Furtherprovisions on the procedure ofthe submission andmanagement of Shipping InformationSystem shall be requlated with a Regulationof the Minister. Article273 (1) Anypersonviolating the provisions referred to in Ar­ ticle 272 sub-Article (1) may be imposed of adminis­ trative sanctions in the form of: a. Warning; b. Freezing of pennit; c. Revocation of permit. (2) Further provisions on the rnechanlsrn and procedure of imposing the administratiVe sanctions referredto in sub-Article (I) shall be regulated with a Government Regulation. a-tAPTER XVI PARTIOPATION OFTHEPUBUC Article 274 (1) In the context of improving the performance of ship­ ping at an optimum. the public has an equal and the widestchanceto participate in shippingactivities. (2) The participation of the public referred to in suo-ar­ tide (1) may bein the form of: a. monitoring and maintaining the orderliness of the cperanons of Shipping actfvities; b. providing ...•• 24A b. providing inputsto the Government for the perfec­ tionof regulations, guidelmes, andtechnology stan­ dards in the field of shipping c. providing inputs to the Governmentand regional governments in the frameworkof gUidance, opera­ tions,and supervision on shipping. d. submittingopinionsand considerations to the au­ thoritieson operationactiviti~ of shipping causing essential impactson the envlrenment; and/or e. filing claimsin representation againstshippingac­ tivitiesdistUrbing, inflicting losses to and/or endan­ geringthe publicinterest. (3) TheGovernrnent Shall considerand shall take follow­ up steps on the inputs, opinions and considerations submitted by the public referred to in sub-article (2) l@t'ters b, c andd. (4) In the performance of the partidpation referred to in sub-artide (2), the public shallalso be responsible to maintain the orderliness,safety and securityof ship­ ping. Artide275 (1) The participation of the public referred to in Article 274 sub-artide(2) may be performed individually,in groups, profession organizations,business entities or other SOCial organizations in accordance with the prin­ ciplesoftransparency and partnership. (2) Further provisions on the participation of the public referred to in sub-article(2) shall be regulatedwith a Regulation of the Minister. CHAPTER XVII SEA AND COAST GUAAD Article 276 (1) In order to ensurethe performanceof safetyand se­ runtyat sea, functions of securing andenforcing statu­ tory regulationson theseaand coastshad to be per­ formed. Business News7695/&1-2008 (2) The execution of the functions referred to in sub-ar­ ticle (1) IS performed by the Sea and CoastGuard. (3) Thesea and CoastGuardreferred to in sub-article (2) shall be formed by and responsible to the President, whereastechnologyoperational matters shall be per­ formedby the Minister. Article 277 (1) In the performanceofthe functions meant in Art1c1e 276 sub-article (n the sea and Coast Guard shall performthe following duties: a. controlshippingsafety and security; b. observe, preventand tacklepollution at sea; c. controland putting in ordershipactivitiesand traf­ fic; d. observeand putting in order actiVities on salvage, under-waterworks,explorationand exploitationof sea resources; e. secure SbippingNavigationalAid Means; and f. supportthe performance of searchand rescueof life at sea. (2) In the performanceof the functions meant in Article 276 suo-article (1), the Sea and Coast Guard shall performcoordination to: a. formulate and stipulategeneralpolicies on law en­ forcementat sea; b. compile integrated policies and operation proce­ dure standardsof law enforcementat sea: c. guard,control,preventandtake actions on lawvo­ latIOns, to secure shippillyand activitiesof the public andthe Governmentwithin Indonesia territorialwa ters: and d. provideintegrated administrationtechnologysup­ port in the field of law enforcementat sea. Al1:ide~78. '" 25A Article278 (1) In the performance of the duties referredto in Article 277, the sea and CoastGuardhasthe authority to: a. performsea patrols; b. makehot pursuits; c. stopandcheck. shipsat sea; and d. perform investigalions. (2) In theperformance of the authority referred to in sub­ article(1) letter d, the Sea and Coast Guard exercised the dutyasGovernment Civil Servant Investigator Offi­ cial in accordance With provisions of prevailing statu­ tory regulations. (3) Furtherprovisions on the authority of Sea and Coast Guardshallbe regulated with a Government Regula~ lion. Article279 (l) In the frameworkof performingitsduties,the sea and Coast Guard referred to in Article 277 shall be sup­ ported with infrastructures inthetorm of armada bases of the Sea andCoast Guard located alloverIndonesia, and are authorized to useships and aircrafts having the statusasstateshipor state aircraft. (2) The Sea and CoastGuardmust possess qualification andoompetence inaccordance with provisions of statu­ tory regulations. (3) Theexecution ot1:tle guarding andlawenforcing meant insub-artide(l), it is mandatory to useandshowclear identities. (4) Furtherprovisions on sea and coast Guardidentities shallbe regulated with a Government Regulation. Article280 OffICers inthe field of guardingand lawenforcing on shipping whodid not useand showthe clear identities referredto in Article279 sub-artide (3) shallbe imposed of administrative sanctions in accordance with provisions of statutory regulations in the field of personnel. Business News7695/8-1-2008 Article281 Furtherprovisions on the on the establishment as well as of the organization anri work mechanism of Sea and CoastGuard shall be regulated with a Government RegiJlation. CHAPTER XVIII INVESTIGATION Article282 (1) Other than the Indonesian policeinvestlgatorsand other investigators, certain civil servantofficialswithin the agcndeshaVing the scoee ofi:luty andresponsibility in the field of shipping may be provided with special au­ thority asthe investigators meantin thisLaw. (1) In the performance of its duty, the civil servantoffi­ cials referred to in sub-article (1) shall be underthe coordination and supervision of the Indonesian police investigator officials. Article283 (1) The investigators referredto in Article282 areautho­ rizedto perform investigations on criminalacts in the field of shipping. (2) Thecivilservantinvestigatorreferredto in sub-article (1) hasthe following authorities: a. To scrutinize, search, and collect information re­ latedwith a criminalact in the field of shipping; b. Toreceive reportsor information from a person on the presence ofa criminal act in thefield of ship­ ping; c. To summon a.person for hearingor investigation as a suspector a witness; d. To makearrestsand detainmentson persons sus­ pected to havecommitteda criminal act in the field of shipping; e. Todemandfor informationandevidence from per­ sonssuspected to havecommitted acriminal actin the field of shipping; f. To•....•. 26A f. To take photosand/or recordings by audiovisual mediaon persons, goods, ships, or whateverthat can be used as evidence of a criminal act in the fieldof shipping; g. To check notesandaccountings obligatedby this Lawandotheraccountlnqs relatedwith acriminal act in the fieldof shipping; h. Totakefingerprints; i. Tosearch ships andplaces, andcheckgoods avail­ ablethere-inif thereisasuspicion ofa criminal act in the fieldof shipping; j. Toconfiscate goodssuspeetedseriously asgoods used in the commitment of a criminal act.in the fieldof shipping; k, To place securing signs and to secure anything which can beused asevidences related withaaimi nalact in the field of shipping; I. Tomakepresent expertwitnesses required incon­ nection with investigations of a criminalact in the field of shipping; m. Todemand the expulsion of a person suspected to havecommitted a criminalact in the field of ~hip­ ping,andtocheck theidentification of the suspect; n. Tostopinvestigations on a criminal act; and o. To takeotheractions in accordance with account­ able laws. (3) The dvil servant investigatorreferredto in sub-article (1) shallreport the result of his investigationsto the pUblic prosecutor thru the police investigator offidalof the Republic of Indonesia. CHAPfERXlX PENAlTY PROVISIONS Article284 Anyperson who operatesforeign ships to trans­ portpassengers and/orgoods inter-island or between ports 'Business News 7695/8-1-2008 in Indonesia territorial waters as meant in Article8 sub­ article(2) shall be penalized with imprisonment for a maxi­ mum of five (5) years and a fine in the amount of Rp 600,000,000.00 (six hundredmillionRph)at the most. Article285 Anyperson who serves special seatransportation transporting cargoor goodsof other partiesand/or trans­ portingcargoor general goods withoutthe permitreferred to in Article13 sub-article (4) shallbe penalized with im­ prisonment for amaximum of one(1) yearor a fine in the amountof Rp 200,000,000.00 (two hundred millionRph) Citthe most. Article286 (1) A Captain of a riverand lake transportation who sails hisshipon the seawithout the permit of the Harbor­ masterreferred to in Article18 sub-article (6) shall be penalized with imprisonmentfora maximum of three (3) years or a finein the amount of Rp200,000,000.00 (two hundredmillionRph)at the most. (2) If theaction referred to in sub-article (1) caused losses of assets, heshallbepenalized with imprisonment for a maximum offour(4) years anda fine in the amount of Rp500,000,000.00 (fivehundred million Rph) at the most. (3) Ifthe actionreferredto in sub-article (1) caused death of a person, the Captain shall be penelized with im­ prisonment for a maximum of 10 (ten) years and a fine in the amountof Rp 1,500,000,000.00 (onebillion and fiVE! hundred million Rph)at the most. Article287 Anyperson who operatesshipsfor water trans­ portationwithout the business permitreferred to in Article 27 shall bepenalized with imprisonment for a maximum of one(1) year,or a fine in the amountof Rp200,000,000.00 (two hundred mmlan Rph)at the most. Article288 . , ... Article288 Anyperson who operatesshipsfor riverand lake transportationwithout the route permit referredto in Ar­ tide 28 sub-article (4) shall be penalized with imprison­ ment fora maximumof one(l) year, or a fineintheamount of Rp 200,000,000.00 (two hundred milliOn Rph) at the most. Article2B9 Any person who operatesships for ferry trans­ portation without possessing shIpoperation approvalas referredto in Article28 sub-article (6) shallbe penalized with imprisonment for a maximum of one (1) year, or a fine in the amount of Rp200,000,000.00 (two hundred mmion Rupiah) at the most. Artide290 Arrf person whoperfonns service-related business without possessing any business permit as referredto in Artlde 33shaH bepenalized withimprisonment fora maxi­ mum of one (1) year or a fine in the amount of Rp 200,000,000,00 (two hundred millionRph) at the most. Artide291 Anyperson who did notperform hisobligationto transport passengers and/or goods especially the trans­ portation of posts as meant in Artide 38 sub-article (1) shall be penaliZed with imprisonmentfor a maximum of one(1) year,ora fine inUteamountof Rp200,000,000.00 (two hundred million Rph)at the most. Artide292 Anyperson not insuring hisobligation asmeantin Article41sub-artide(3) shallbe penalized with imprison­ ment for a maximum ofsix(6) months, anda fine in the amountof Rp100,000,000.00 (one hundredmillionRph) at the most. Business News 7695/8-1-2008 27A Artide293 Anyperson whodidnot providethespecial fadll­ tiesandeasereferred to in Article42 sub-article (1) shall bepenaUzed with imprisonmentfor a maximum of six(6) months, and a fine in the amountof Rp 100,000,000.00 (one hundred millionRph) atthe most. Article294 (1) My person who transportsspecial goodsand hazard­ ous goods not in accordance with the requirements referred to in Artide 46 shallbe penalized with impris­ onmentfor a maximumof three (3) yearsor a fine in the amountof Rp400,000;000.00 (four hundredmil­ lionRph)at the most. (2) If the actionreferredto insub-article (1) caused losses of assets, he shall be penali7ed with imprisonment for a maximumoffour(4) yearsanda fine in the amount of Rp500,000,000.00 (fNe hundredmillionRph) at the most. (3) 1ftheactionreferred to in sub-article (1) caused death to a person and losses of assets, heshallbe penalized with imprisonment for a maximumof 10 (ten) years andafine in the amountof Rp1,500,000,000.00 (one billionandfive hundredmillionRph)atthe most. Artide295 Any person transporting hazardous goods and special goodsnot submitting the notificationsreferredto in Article 47 shalfbe penalized with imprisonment tor a maximum ofsix(6) months andafine in the amountof Rp 100,000,000.00 (onehundredmillionRph)at the most. Artide296 Any person not insuring his obligation meant in Article54 shall be sentenced in jail for a maximum of six (6) months,or a fine in the amountof Rp100,000,000.00 (onehundredmillionRph)at the most. Article297 " ...... 28A Artide297 (1) Anyperson who buildand operateriverand lakeports without the permitreferred to in Artide 98sub-article (1) shall be penalized with imprisonmentfor a maxi­ mum of two(2) years,or a fine in the amount of Rp 300,000;000.00 (three hundred million Rph) at the most. (2) Anyperson whoutilizes coastlines for activities on ship­ tethering, cargo loadingand unloading,or embarka­ tion anddisembarkation of passengers for own inter­ est outsideof the activities of port, special terminal, and own-useterminal without the permit referred to in Article339 shall be penalized with imprisonment for a maximumof two (2) years, or a fine in the amount of Rp300,000,000.00 (three hunclred million Rph)at the most. Article298 Any person not providing the guarantee on the performance of his indemnficetlon obligations for the per­ fonnanceof activitiesin portsas referredto in Article100 sUb-artide(3) shallbe penalized with imprisonmentfor a maximumof six(6) months, anda fine in the amountof Rp 100,000,000.00 (onehundredmillionRph)at the most. Article299 Any personwho bUildand operate a special ter­ minal without the permit referred to in Article 104 sub­ article(2) shallbepenalized with imprisonment for a maxi­ mum of two (2) years, or a fine in the amount of Rp 300,000,000.00 {three hundredmillionRph}at the most. Artide300 My person who usesa special terminal without the Minister's permit referred to in Article 105 shall be penalized with imprisonment for a maximum of 000(2) ~rs,ora fine in theamountof Rp 300,000,000.00 (three hundredmillionRph)at the most. BusinessN~ 7695/8-1-2008 Article 301 Any person who operates a special terminal to serve trades to and from overseas without fulfilling re­ quirements, andthe stipulations referredto in Article111 sub-article (4) or sub-article(5) arenot yet available, shall be penalized with imprisonmentfor a maximumof two (2) years, or a fine in the amountof Rp 300,000,000.00 (three hundred million Rph)at the most. Article 302 (1) A captain who sailed his ship while knowingthat his ship is not sea-worthy as meant in Article 117 sub­ article(2), shall be penalized with imprisonmentfor a maximumof three (3) yearsor a fine in the amountof Rp400,000,000.00 (four hundred million Rph) at the most. (2) If the action referred to insub-article(1) caused losses of assets, he shall be penalized with imprisonment for a maximum of four (4) years anda fine in the amount of Rp500,000,000.00 (fIVe hundredmlUion Rph)at the most. (3) Iftheaetion ,~ferred to in sub-artide (1) caused death of a personand losses of assets, he shallbe penalized with imprisonment for a maximum of 10 (ten) years anda fine in the amount of Rp1,500,000,000.00 (one billionand five hundredmillion Rph) at the most. Article 303 (1) Any personwho operates a ship and a port without fulfilling the requirementson shippingsafetyand se­ curity, and marineenvironmentprotectionasreferred to inArtide 122,shallbe penalizedwith imprisonment fora maximumof two(2) yearsor a fine in the amount of Rp 300,000,000.00 (three hundred million Rph) at the most. (2) If the actionreferred to in sub-article (1) caused losses ofassets; he shallbe penaliZed with imprisonment for a maximum of four (4) ~rs anda fine in the amount of Rp SOO,Ql.X),OOO.OO (five huodred million Rph) at the ITlOSI:. 29A (3) If the action referred to insub-artide (1) caused death of a person,heshallbe penalized with imprisonment for a maximum of 10 (ten) years and a fine in the amountof Rp1,500,000,000.00 (one billion and five hundred millionRph) at the most. Article304 Anyperson whodid notprovide anyassistance on the performance of checks and testing referredto in Ar­ ticle 128sub-article (2) shall be penalized with imprison­ ment for a maximum of six (6) months or a fine in the amount of Rp 100,000,000.00 (one hundred million Rph) at themost. Article305 Any person whodid not maintainhisshipmaking it notto be incompliance with requirements onship's safety asmeant in Article130 sub-article(1) shall bepenalized with imprisonment for a maximumof SIX (6) monthsor a fine in the amount of Rp 100,000,000.00 (one hundred millionRph)at the most. Article306 Anyperson who operatesa ship not meeting re­ quirements of navigational equipment and/or ship elec­ tronic navigations as referredto in Artide 131sub-artide (1), shallbe penalized with imprisonmentfor a maximum of two (2) years, and a fine in the amount of Rp 300,000,000.00 (three hundredmillion Rph) at the most. Article307 hrI person whq operates a ship not equipped with anyradio communication setanditsandllaries as referred to inArtide131sub--artide (2),shall be pen1llized with lmprison­ mentfora maximum oft\'«)(2)years, an::Iafine intheamount cIRp300,000,(00.00 (three hundred millkln Rph) atthe nm. Business News 7695/S-1-2008 Artide308 Any person who operatesa shipnotequipped with anymeteorulogyequipmentasreferred to inMde 132sub­ article (1), shallbe penalized with imprisonment for a maxi­ mum of two (2) years, and a fine in the amount of Rp 300,000,000.00 (three hundredmillionRph)at the most. Artide309 A captain who is sailing his ship and knowsthe presence of bad weatherendangering shipping safety, but didnot disseminate it to other partiesand/or the Govern­ ment as meant in Article 132 sub-article(3) shallbe pe­ nalized with imprisonment for a maximum of two (2) years anda fine in the amountof Rp300,000,000.00 (threehun­ dredmillionRph)at the most. Artide310 Anyperson who employsa crewnotmeeting the qualification andcompetence requirements referredto in Article 135 shall be penalized with imprisonment tor a maximum of two (2) years, anda fine in the amountof Rp 300,000,000.00 (three hundredmillionRph)at the most. Article311 Anyperson who hindersthe freedomof actionof a Captain to perform his obligations in accordance with provisions ofstatutory regulations asmeantin Article138 sub-article (4) shallbe penalized WIth imprisonment for a maximum of two (2) years,anda fine intheamountof Rp 300,000,000.00 (three hundredmillionRph)at the most. Article 312 Anyperson whoemploys somebodyonboardinany position whatsoever without1:Jejng certified anddidnothave the required competence andskill,andsailor documents as meantin Artide 145shall be penalized with imprisonment foramaximum of two (2) years, anda fineintheamountot Rp300,000,000.00 (three hundred million'Rph) at themost. Artid~ 313 , ..• Artlde313 Any person who usescontainers as part of his transportation means not meeting requirements on the worthiness of the containeras meant in Article 149 sub­ article(1) shall bepenalized wlth imp'risonment for a maxi­ mum of two (2) years, and a fine In the amount of Rp 300,000,000.00 (three hundred million Rph)at the most. Article314 Anyperson who didnot install the registration sign ona shipthat hadbeenregistered asmeant inArtide 158 stlb-artide (5) shallbepenalized with imprisonment for a maximum of six (6) monthsor a fine in the amountof Rp 100,000,000.00 (onehundred millionRph)at the most. Article 315 Acaptain flyingthe flag ofanother countlyassym­ bolof hisnationality asmeantinArticle 167shallbe penal­ ized with imprisonmentfora maximum of one(1) yearor a fine in the amountof Rp 200,000,000.00 (two hundred millionRph)at the most. Article316 (1) Anyperson who on purpose damaged or performed actions causing the malfunctions of Shipping Naviga­ tionalAid Means andfacil1ties of shipping laneson the sea, riverand lakeas well asShipping Telecommuni­ cationas referredto in Articl~ 174shall be pe/ldlized with: a. imprisonment for a maximum of 12 (twelve)years ifsuch actioncancause dangers to shipping, or a fine in the amount of Rp 1,500,000,000.00 (one billionandfIVehundred millionRph) at the most. b. imprisonment for a maximum of 15(fifteen) years if such actioncan causedangers to shipping and such actioncaused ashipto sinkor stranded, andl ora fineintheamountofRp2,000,000,000.00 (two billion Rph) at themost;or Business News 7695/8-1-2008 30A c. imprisonment for life or imprisonment for a certain period; 20 (twenty) years at a maximum, if such actioncancause dangersto shipping, andcaused the death to anyone. (2) Any person who due to hiS negligence caused the malfunctioning of Shipping Navigational Aid Means and facilities of shipping lanesonthe sea, riverand Jake as well asShipping Telecommunication as referredto in Articlet 74s-hall bepenaliZed with imprisonment for a maximum of 000·(1) yearor afine in theamountof Rp 200,000,000.00 (two hundred millionRph) at the most, ifsuch actioncan cause dangerstoshipping. Article317 captainswhodid not obey the provisions referred to in Article193 sub-article (1) shall bepenalized With im­ prisonment for a maximum of one(1) yearor a fine in the amount of Rp200,000,000.00 (two hundred million Rph) at the most. Article 318 Anyperson who performsdredging andreclama­ tion works on shipping lanesand port pool without the permit of the Government referred to in Article197sub­ artlcle (1) shall be penellzed with imprisonment for a maxi­ mum of two (2) years, or a fine in the amount of Rp 300,000,000.00 (three hundredmillionRph) at the most. Article319 Scoutofficers whoperforms scouting Without hav­ ing the certificatereferred to in Article199sub-article (1) shallbe penalized with imprisonment for a maximum of two (2) years, or a finein the amountof Rp300,000,000.00 (three hundred millionRph)atthe most. Artide320 Ship-owners and/or Captains whodid not report their ship'sbodyexistingunderIndonesian watersto the authories referredto in Article202sub-article (1) shallbe penalized with imprisonment for a maximum of six (6) monthsand a fine in the amount of Rp 100,000,000.00 (onehundredmillionRph)at the most. Artide 321 .... 31A Artide321 Ship-owners and/or captainsnot removing their ship'sbodyand/orcontentdisturbing shipping safetyand security withinthetime limitstipulated by the Government asreferred to in Article203sub-article(l) shallbe penal­ izedwith imprisonment for a maximum of one (1) year and a fine in the amountofRp 200,000,000.00 (two hun­ dred millionRph)at the most. Article 322 captains peIformingactivitiesonrepairs, shipping trials, transferof cargo in port pool, tugging,and loading and unloading of hazardous goodswithout the Harbor­ master's permitasmeant inArticle 216sub-article (1) shall bepenalized with-imprisonmentfor a maximum of six(6) months or a finein theamountof Rp100,000,000.00(one hundred millionRph) at the most. Artide323 (1) Acaptain whosails withouthavingtheSailing Approval Letter issued by the Harbor-masterreferred to in Ar­ ticle219sub-article (1) shallbe penalized with imprts­ onmentfor a maximum of fNe (5) years and a tine in the amountof Rp600,000,000.00 (sixhundred million Rph)at themost. (2) If the octionreferred to in 5ub--article(1) caused losses ofassets, heshall be penalized with imprisonment for a maximum of 10(ten) years anda fine inthe amount ofRp 1,000,000,000.00 (onebillionRph) at the most. (3) If theactionreferredto in sub-artide (1) caused any shipaccident resulting in deaths, the Captain shall be penalized with imprisonment foramaximum of 10(ten) years anda flnein the amount of Pop 1,500,000,000.00 (onebillionandfivehundred miUion Rph) at the most. Business News7695/8-1-2008 Artide324 Anyship crewwhodidnotexecute anypreventive andtackling actions on the occurrence ,J pollution of the environment from the ship as referred to fl Article 227 shall be penalized with imprisonment for a maximum of two (2) years, and a fine in the amount of Rp 300,000,000.00 (tnree hundred million Rph) et the most. Article325 (1) Any person whodisposed wastes of ballast water,dirt, garbage or other substances to the waters Violating provisions of statutory regulations as referred to in Article 229sub-article (1) shall be penalized with im­ prisonment for a maximum of two (z) years, and a fine in the amountof Rp300,000,000.00 (three hun­ dred million Rph) at the most. (2) If the action referred to in sub-article (1) caused dam­ agesto the liVing envlrormeet, heshall bepenalized with imprisonmentfor a maximum of 10 (ten) years anda fine in the amountof Rp500,000,000.00 (five hundred millionRph) atthe most. (3) Iftheaction referred to in sub-article (1) caused death to somebody, he shall be penalized with imprisonment for a maximum of 15 (fifteen) years anda fine in the amountof Rp2,500,000,000.00 (two billionand five hundred millionRupiah) atthe most. Article 326 Anypersonwhooperatesa shipemittingexhaust gasexceeding the threshold referred to in Article 229sub­ article (3) shall be penalized withimprisonment foramaxi­ mum of two (2) years or a fine in the amount of Rp 300,000,000.00 (threehundred millionRph) at the most. Artide 327. , ••• 32A Artide327 Anyperson whodid not insurehisobligations re­ ferred to in Article 231 sub-article (2) shall bepenalized with imprisonment for a maximum of six(6) monthsanda fine in the amount of Rp 100,000,000 00 (one hundred millionRph)at the most. Article328 Any person who transports hazardous and toxic substance wasteswithout observing the speciflcetion of the ship as referred to in Article 233 sub-article(~) shall be penalized with imprisonment for a maximum of two (2) years anda fineintheamountof Rp300,000,000.00 (three hundred millionRph) at the most. Article329 Anyperson whoperformsship-scrapping without fUlfilling the requirements on marine environmentprotection re­ ferred to in Article 241 sub-article(1) shall be penalized with imprisonment for a maximumof two (2) yearsand a fine in the amountof Rp300,000,000.00 (three hundred millionRph)at the most. Article330 Acaptainwhoknows the presence of dangerand accidentan hisship,onotherships, or to anyperson found to beindanger, butdid notexecute anypreventive actions anddid not disseminate the newson such matter to other parties,did not report it to the nearestHarber-mester or Representative Officialof the Republic of Indonesiaor to the official havingthe authority of the localcountry gov­ ernment in the event of danger if the accidentoccurred beyond Indonesia territorial waters, as meant in Article 244sub-article (3) Orsub-article(4), Article24/ or Article 248shallbe penalized with imprisonmentfor a maximum of three (3) years or a fine in the amount of Rp 400,000,000.00 (four hundredmillionRph)at the most. Business News7695/8-1-2008 Article331 Anypersonon a shipwho knowsof an occurring accidentbut did not provideany help within the limits ot hiscapabilityor did not report the accidentto the Captain and/or Ship Crew as referred to in Article 246, shall be penalized with imprisonment for a maximum of one (1) year or a fine in the amount of Rp 200,000,000.00 (two hundred millionRph)at the most. Article332 Anyperson whooperatesa shipor aircraftbut did not assist in search and rescue efforts on a person en­ counteringany disasteras referredto in Article 258 sub­ article(2) shallbe penalized with imprisonment fora maxi­ mum of one (1) year and a fine in the amount of Rp 200,000,000.00 (two hundredmillion Rph) at the most. Article333 (1) A criminalact in the field of shipping isdeemed to be committed by a corporate if such criminal actwascom­ mitted by a person acting for and/or in the name of the corporate or for the interest of the corporate, ei­ ther based on work relationship orother relationships, actingwithin the corporateeither severally or jointly. Article334 In the event of summons to a corporate to be present, the deliveryof the summons letter to the man­ agement mustbe at the placeusedby themanagement as ornce, where the corporate operates, or at the residence of the management. Article335 In the event a criminal act was committed by a corporate, besides the imposing cifimprisonment anafine penalties on its management, the penallythat maybe im­ posed on the corporate may be three (3) timespenalties stipulated in this Chapter. Arti¢le336..on. 33A Article336 (I) Anyofficialwho violatesa special obligationof hispo­ sition or at the time of committing a criminalact used his authority, opportunity, or meansprovided to him due to hisposition,shall be penalized with imprison­ ment for a maximumof one (1) yearand a fine in the amount ofRp 200,000,000.00 (two hundred million Rph)at the most. (2) Besides the penalty referred to in sub-article(1), the performer may be imposedof additional sentence in the fonn of discharged from office. CHAPTER XX MISCl:UANEOUS PROVISIONS Article 337 Provisions on manpower in the field of shipping shall be exercised in accordance with provisionsof statu­ tory regulations in the fieldof manpower. Article338 Provisions on education and training of human resources as referred to in Article 253and 254are appli­ cablemutatismutandisin the field ot transportacon. Article 339 (1) Any person who utilizes coastlines to build facilities and/or to perform activities onship-tethering, cargo loading andunloading, or embarkation and disembar­ kation of passengers for own-interest outside of the activities of a port, a special terminal and own-use terminal,must havea permit. (2) Further provisions on the mechanism and procedure ofthe permitting referred to in sub-article(1) shallbe regUlated with a Regulation of the Minister. Article 340 Lawenforcementauthority in the Exclusive Eco­ nomicZoneshallbe exercised by the Navyof the Indone­ sianNational Army in accordance with provisions of statu­ tory regulations. Business News7695/6+2008 CHAPTER XXI TRANSmONAL PROVISIONS Article341 Foreign shipswhich at present arestill operating domestic sea transportation activities canstillperform their activities for three (3) yearsat the latestfrom the date this law comesto effect. Artide342 PortAdministrators and PortOffices shallstillper­ form their duties and functions until the new institutions based on this law have beenestablished. Article 343 Activities of publicports, ferry ports,special ports, and own-use wharfs, that had been operated based on law No. 21 Year1992 concernifliJ Shipping, shallcontinue to operateon conditionthat its roles, functions,types, hi­ erarchyand statusmust beconformed to this Lawno later thantwo (2) yearsfrom the date this Lawcomes to effect. Article 344 (1) By the time thIs Law becomes effective, the Govern­ ment, the Regional Governments, and State-Owned Business Entities operatinq ports shallcontinue to per­ form the exploitationof suchportsbased onthis Law. (2) In a period of three (3) years at the latest from the date this Law comesto effect, port business activities performedby the Government, the Regional Govern­ ments,and State-Owned Business Entities referredto in sub-artlde (1) must be adjustedto provisions regu­ lated in this Law. (3) ExplOitation activities at portswhich havebeenoper­ ated by State-Owned Business Entitiesshallcontinue to be performedby suchState-Owned Business Enti­ ties. Article345 (1) Agreements Drcooperationwithin Work Environment Areas between State--Owned Business entitiesperform­ ing port businesses and third partiesare still valid. (2) By ..... (2) By the time this Law becomes effective, the agree­ mentsor cooperation betweenthe State-Cwned Busi­ ness Entitiesand the thirdparties must be performed in accordance with this law. Artlde346 The guarding andlawenforcing at sea andonthe coasts, andcoordination of security at sea shall continue to be performed in accordance with provisions of statutory regulations up to the establishment of the sea andCoast Guard. OiAPTERXXII QOSING PROVISIONS Article347 Government Regulations and other implementa­ tion regulatlons of this Lawshallbe stipulated one(1) year at the latestfrom the date this Lawcomestoeffect. Article 348 Port Authorities, Port PerformerUnits, and Har­ bor-masters mustbe established within one(1) yearat the latest from the date this Law comes to effect. Article349 National Port Master Plan shall be stipulated by the Government within two (2) yearsat the blest from the date this Lawcomes to effect Article350 Main portstofunction asinternational connections mustbe stipulated by the Government two (2) years at the latest from the date this Lawcomesto effect Article351 (1) PortMasterPlans, WorkEnvironmentAreas, and In­ terest Environment Areas ofportsthat hadexisted be­ forethis Law, should becompletely evaluated andcon­ formed to this law within two (2) years at the latest from thedatethisLawcomes to effect. (2) Port Master Plans, Work EnVironment Areas, and In­ terest Environment Areas of ports not yet stipulated based onLawNo.21 Year1992concerning Shipping must be stipulatedwithin a periodof two(2) years at the latestfrom the date this law comes to effect. Business News 7695/8-1-2008 34A Article352 Se<I and CoastGuardmust be established within three (3) yearsat the latest from the date this Lawcomes meffect. Article 353 Bythe time this Lawbecomes effective, all imple­ mentation regulations of Law No.21 Year 1992 conceming Shippingare declared to remain in force to the extent it is not contradictory to or arenot yet replaced with newones based on this Law. Article 354 Bythe time this Lawbecomes effective, LawNo.21Year 1992concerning Shipping (R.!. State Gazette Year1992 No. 98, Supptement In R.I. Stalt: Gazette No. 3493), ~hall berevoked and declared asno more in effect. Article355 This Law commences to become effective from the date of enactment. Forpubliccognizance, thisLaw shall be announced by promulgating it in the Statute Bookof the Republic of Indonesia. Stipulated in Jakarta, On May 7,2008 THE PRESIDENT OFlliE REPUBUC OFINDONESIA Sgd DR. H. SUSILO BAMBANG YUDHOYONO Promulqated inJakarta On May 7, 2008 THE MINISTER OFLAW AND HUMAN RIGHTS OF THE REPUBliC OFINDONESIA Sgd AND! MATTALATTA (STATI../TE BOOK OFTHE REPUBUC OFINDONESIA YEAR 2008 NO.64) ====(D)==: 3.lA SHIPPING (Law Number17Year200Bdated March 7, 200B) [COntinued from Business NewsNo. 7695pages6A-34A] ELUCIDATION OF LAW OF REPUBliC OF INDONESIA NO. 17 YEAR 2008 ON SHIPPING I. GENERAl.. With the blessing of the One and Only God,Uni­ tary State of the Republic ofIndonesia is blessedasan archipelago consistingof thousandsof islandsspread along the equator between two continents and two oceans, therefore having an essential and strategic position and role in the communicationbetween na­ tions. Thestrategic positionof UnirnryStateof the Re­ publicof Indonesiamust be utilizedat a maximumas a basic capital for thenationaldevelopment based on the 1945 Constitutionto realizea safe, peaceful, just and democraticIndonesia as well as to improve the pros­ perity of the people. In the framework of performing the national de­ velopmentandrealization of the Archipel3gic Concept, it is necessary to tocompile an effective and efficient nationaltransportationsystemto supportandsimulta­ neously to motivatethe dynamics of the development, increase the mobility of man, goods and services, to assist the creation of a stable and dynamic natlonal distributionpattern aswell as to support the develop­ ment of the regions andto stabilize the development of Business News7712/9-12-2008 the life of the society,nation and country,support the defense and security, and further strengthentiesof in­ ternationalrelationship. Transportationisa meanstoexpeditethe wheels of economy, to strengthen the unity and union in the framework of stabilizingthe realization of the Archipe­ lagic Concept, to enhance and support state security and defense, andfurther strengtheninterriational rela­ tionship. The importance of transportation is shown in its performancewhich affected all aspects of the life of the nationandstate aswell asthe everincreasing need for transportation services for the mobility of man and goodS domesticallyas well as to and from abroad. Other than that, transportation alsohasa roleas supporter, driver, and motivator for the growth of the regions havinggreat natural resources potentials, how­ ever not yet developed, in the effort of improving and equaliZing of the developmentwith its gains. Realizing tHe importance of transportation role, sea transportation asoneof transportation modes must be arranged in one integrated national transportation. systemunity and capableof realizingthe provisions of a balanced transportation services in accordance with the levelof needsand the availabilityOf transportaton services that is safe,highly accessible, integrated,ad­ equate caJRll;:ily, regular, 5I1100th andfast, casilygaincd, timely, comfortable, cheap fare, orderly, secure, low pollution, andefficient. Sea ..... sea transportation having the characteristics of national transportation and coveringall of the areas thru watersis required to be developed asof its poten­ tials and enhanced as of its role as inter-region con­ necb:lr, bothnationallyandinternationally including bor­ der-crossing, because it is used as meansto support, driVe, and motivate the national development in the effort to improve the prosperity of the people as well as to unitethe Unitarystate of the Republic of Indone­ sia. Considering the importanceand strategic roleof sea transportation controlling the basicneedsof the people, its existence shall be controlled by the State where-inits nurturance shall be performed by the Gov­ emment. In the passage of time, Law No. 21 Year 1992 concerning Shipping is required to be adjusted since various changes of paradigm andstrategic environment had occurred, both in IndonesiaStateSystem suchas the implementationof regionalautonomyand develop­ ments in the field of science and technology. Other than that, definition of the term "shipping" as a system had alsochanged, and consists of water transportation,port affairs, shippingsafetyand secu­ rity, andmarineenvironmentprotection, which further require adjustmentswith needsand developmentof the era andof science and technology so that the world of shipping canplaya role in the internationalworld. Based on the abovematters, law on Shipping is compned whichisa perfection of LawNo.21 Year 1992, so that the performance of shippingas a systemcan contribute the greatest benefit to the whole people, Business News7712/9-12-2008 32A nationandstate,to fosteranddevelopmarinespirit by prioritizingthe interest of the public,andpreservation of the environment, coordinationbetweenthe central andthe regions, and state securityand defense. laW onShipping consisting of four main elements i.e. transportationon water, harboraffairs,safetyand securityof shipping,and marine environmentprotec­ tion can be described as follows: a. Arrangements in the field of water transportation containthe principleof cabotage as its implementa­ tionprinciple by empowering national marinetrans­ portation that providesa conducive climateto pro­ ceed the water transportation industries, among othersthru fadlities in the fieldottaxanonandcapt­ lal in the prct of :,hilY.> and the availability of long term contractsfor transportation; In the framework of empoweringthe nationalma­ rine transportation industry, mortgage on ships is alsorequlated in this law. Thisarrangementis one of the efforts to assure creditors that Indonesian shipscan be used as mortgage based on legisla­ tions,thereforenationalmarinetransportation com­ paniescaneasilyget funds for the developmentof its armada; b. Arrangements in the field of harborscontain provi­ sionson the revocationof monopolyin the opera­ tionsof harbors, separation betweenregulatorand operator functions, and enabling the participation of the regionalgovernmentsand private sector in the performanceof harboraffairs; c. Arrangements . c. Arrangements in the field of shipping safety and seCurity containprovisions anticipating the develop­ mentoft:ed1nology by referringto international con­ ventionspreferringthe useof latest equipment for meansand infrastructures of shipping safety, be­ sidesaccommodating provisions on shipping safety system contained in "International Ship and Port Facility Security Code"; and d. Arrangements in the field of marine environment protectioncontaining provisionson the prevention andcopingof marineenvironmentpollutioncaused by the operationsof shipsand similarmeansbyac­ commodatingrelated intemational provisions such as "International Convention for the Prevention of Pollutionfrom Ships". Other than the above matter, issues that must be expresslyand clearly regulated in this Lawis the for­ mation of an institution in the area of sea and Coast Guard, established and responsible to the President, and technicallyoperationalexercised by the Minister. The sea ana coast Guardhas a command func­ tion in the enforcement of regulations in the field of shipping safety and security, and conrclination function in the field of lawenforcementbeyondshippingsafety. The sea and CoastGuard is an empowerment of the Sea safety COordination Bodyandaugmentationof the Sea and Coast GuardingUnit. Thru thisarrangement, enforcementof regUlations in the field of shipping safety and seeurity can be ex­ ecutedsynchronously andcoordinatedproperly, there­ fore the authority of enforcementof law at seawill not be over-lappinglikelyto reduceimageon Indonesiain the re~tions betweennations. Bustnes5 News nl2/9-12-2008 33A St<ltf:' Owned Business Entf'rprisf's which <III this time had carried out port exploitations, may still carry out the sameactiVities by obtaininga delegation of au­ thority from the Government, in the effort to enhance the role of StateOwned Business Enterprise to support the economicgrowth. Thru the enactmentof this Shipping Law, various provisions existingin other le9islations related with Ship­ ping,amongothersTradeLawCode (Wet Borepublikek Van Koophandel), Territorial Sea and MarineEnviron­ ment ProtectionOrdnanceYear1933, Law no. 1 Year 11973 concerning Indonesian Continental Shelf, Law No.5 Year1983 concerningIndonesianExclusive Eco­ nomic Zone, Law No. 17 Year Year 1985 concerning ratificationof United NationsConvention on the Law of the sea Year 1982 , law No.6 Year 1996 concerning IndonesianWaters, Law No. 23Year1997concerning Managementofthe lMng Environment, law No. 31Year 200'1 concerning FisheryI andto the extent concerning :;hippingsafety and security aspect, are subject to ar­ rangementsin this Lawon Shipping. In this Law, matters that are fundamentalln na­ ture are requlated, whereas those that are technical andoperationsin nature,are regulated in Government Regulations andother implementationregulations. n. ARTICLE BY ARTICLE Article1 self-explanatory Article 2 . Artide2 Lettera What is meant by "benefit" is that shippingmust beableto provide maximumbenefit for humanity, improv­ ing the prosperityof the peopleand improvementfor the citizens, and improvingState securityanddefense. Letterb What ismeantby "commoneffort andfamiliarity" isthat the performance of business in the fieldof shipplng c;hallbP rarrled out tn ac:hi~ve the national.goal where-in its activities can be performed by the whole community and inspiredby the spirit of familiarity. Letterc Whatismeantby "healthycompetition"isthat the performance of domestic watertransportation mustbe able to developits business independently, competitively, and ~rofessionally. letterd Whatismeantby "justice andequalitywithoutdis­ crimination" is that the performanceof shippingmust be able to proVide a fair andequalserviceto all layersof the communitywith fareswithin the reachofthe community withoutdifferentiating theirethnics, religions, descendants, and economy level. Lettere What ismeant by "balance, harmonyandconfor­ mity" is that shipping must be performed as such that there isa balance, harmony andconformitybetween means and infrastructures, betweenthe interest of serviceusersand providers, between the Interests Of individuals and the public, andbetween the interestof the nationand interna­ tional. Letterf What ismeant by "public interest" Isthat the per­ fonnance of shipping must prioritize the interest of the wholecommunity; Business News7712/9-12-2008 34A Letterg What is meant by "synchronization" isthat ship­ ping must be a whole and round unity, integrated, sup­ porting eachother, and filling each other both inter and intra-mode. Letterh What is meant by "rule of law principle" is that this law obligates the Government to enforce andguaran­ tee legalcertainty and obligatesall Indonesiancitizensto bealwaysawareof and in compliance to law in the perfor­ manceof shipping. Letter i What is meant by "independent" is that shipping must be founded on national personality, based on self­ capability andstrength, prioritizingthe nationalinterest in shippingand payingheed to logiLaI Largu seqment in wa­ ter transportationfrom and to abroad. letter j What is meant by "living environment vision" is that the performance ofshIppingmust be carried out with a livingenvironmentvision. Letterk What is meant by "state sovereignty"is that the performance of shipping must beableto keepthe integrity of the territory of the state ofThe Republic ofIndonesia. LetterI What ismeant by "nationality" is that the perfor­ mance of shipping must be able to show the pluralistic characterand nature of the Indonesian nation by always adhering to the principle of the Unitarystate of the Repub­ licof Indonesia. Article 3 " . (To becontinued) ="==(D)=:== 2A SHIPPING (Law Number 17 Year 2008 dated March 7, 2008) [Continued from Business News No. 7712 pages 31A-34A] ELUCIDATION OF LAW OF REPUBUC OF INDONESIA NO. 17 YEAR 2008 ON SHIPPING Article 3 self-explanatory Article 4 Included in the Indonesian waters are ground waters among others rivers, lakes, dams, and canals. What is meant by "ship" in letters band care: a. Ship moved by wind are sailing ships; b. Ships moved by mechanical power are ships having engine generating power, such as motor ships, steam­ ship, ships with solar power, and nuclear ships; c. Hauled or tugged ships are ships moving by using gen­ erating device in the form of other ships; d. Vehiclehavingdynamic support power are types of ships operated at water surface or above the water surface using dynamic support power caused by its own speed and/or by the design of the ship, e.g. jet foil, hydro foil, hovercraft, and other fast ships meeting certain crite ria; e. Sub-surface sblps are types ofships able to move un­ der water surface; and f. Immovable ftoating devicesorfloating buildingsare f1oat­ inq devices or floating buildings not having its own BusinessNews 7713-7714/9-17-2008 moving power, and placed at Q certain water location and cannot move at the same time, e.g. floating hotel, accommodation barge to support off-shore activities and oil storage barge, and mobile off-shore drilling units (modu), Article 5 Sub-Article (l) Definition of state-controlled is that the state has control rights on the performance of shipping where-in its realization consists of regulating, control and supervision. Sub-Article (2) thru Sub-Article (7) Self-explanatory Article 6 thru Article 7 Self-explanatory Article 8 Sub-Article (1) The use of ships flying Indonesian banners by na­ tional sea transportation companies is purported in the framework of implementing the principle of cabotage to protect the sovereignty of the state, and to support the materialization of the Archipelagic Concept as well as to provide the broadest businessopportunities to national sea transportation companies to obtain cargo segment. Sub-Article (2) Self-sxplanatorv Article 9 ..... Article 9 Sub-Article (I) Whatis meantby " inter-modes" covers domestic sea transportation, foreignsea transportation, special sea transportation, and people shipping transportation. What is meant by "between modes" is the inte­ gration of landtransportation,seatransportation,and air transportation.The inter and intra-modesconstitute the national transportation unity. Sub-Article (2) Whatismeantby "fixed and regularroute (liner)" isthe operations of sea transportation performed constantly and regularly, scheduled and stating its vlsited ports. What ismeant by "not fixed and irregular route (tramper)" istheoperations ofseatransportation performed not constantly andirregularly. Sub-Article (3) What is meant by "route net" is a collection of routes which form a unity of sea transportation services for passengers and/or goodsfrom oneport to another. Sub-Article (4) Self-explanatory Sub-Article (5) Theestablishment of a fixed and regularroute is meant to provide legal and business certainty to sea trans­ portation services usersand providers. Sub-Article e6) self-explanatory Sub-Article (7) Lettera andLetter b Self-explanatory Letterc What is meant by "balance of demand and Business News7713-7714j9-17-2008 3A availability of ships' space(supply and demand)" IS the realization of services in a route measurable with certain loadfactor. Letterd andLettere Self-explanatory Sub-Article (B) self-explanatory Article10 self--explanatory Article 11 Sub-Article (1) Self-explanatory Sub-Article (2) What is meant by "logical load segment" is that logicaldoesnot alwaysmeansto get an equalshare,but getting a segmentas stipulated in legislations, e.g. bilat­ eral agreements, internation.;J1 conventions ri;ltified by the government of the Republic of Indonesia,andother regu­ lations. Particularly for goOO5 nfthe Govemment it isnec­ essary to endeavorthat its transportationshallbe carried out by nationalsea transportationcompanies. National sea transportation companies areentitled to enter into cooperation with foreign sea transportation companies to determine fair shareagreements. Sub-Article (3) Self-explanatory Sub-Article (4) What is meant by "national companies'' are na­ tional seatransportationcompanies and business entities particularlyestablished for agencyactivitiesmeetingde­ terminedrequirements. Sub-Article (5) ....... Sub-Article(5) What ismeantby "continuously" isthat sea trans­ portation activities toor from Indonesian ports opened to foreign trade performed byforeignseatranslXlrtation com­ paniesshallbe continuousand uninterrupted. Article 12 Self-explanatory Article 13 Sub-Article(1) Includedin activitiesof special transportation per­ formed by business in the field of industry, tourism, min­ ing, agriculture, and special activities such as research, dredging, roc:ial activities, etc and not serving other par­ ties and not transporting public cargoes.The specialsea transportation both domestically and overseas maybe car­ riedout in the frameworkmeetingrequirements whichdue to the nature of its cargo is still not performed by public sea transportationserviceproviders. Sub-Article(2) What ismeant by "operations permit" isa permit provided to performers of special sea transportation ac­ tivities relatedwith the operationsof its ship to support its primary business. Sub-Article (3) thru SUb-Article (7) Self-explanatory Article 14 self-explanatory Business News7713-7714/9-17-2008 4A Article 15 Sub-Article (1) What is meant by "community effort" ;sbusiness performedbyIndonesiancitizens and/or IndonesianBusi­ nessEntitieS by ".ocouragingbusinesses that are eoopera­ tive in natl.lre. Such community effort has a traditional charac­ teristic and nature found not only in the method of busi­ ness managementand its management, e.g. concerning the work relationship betweenthe shipownerandthe creN, but also on the type and form of ship being used. These issues need to be preservedand deveklpedby payingdue observance on the development of science and technol <Y:JY. What is meant by "separate characteristic" is amongothers as follows: 6. length and type of certain ships (pinisi, lambo, nade, and rete); b. wind moving force for sailing ships, or engine with a power less than 535 TK or 535 TK x 0.736'" 393.76 KIN·, c. manning with qualif!catioh different from the qualifir:i=l­ tion stipulated for ships; d. scope of operationscan reachisolatedareas havingno port facilities and a shallow water depth, and border­ ing countries; and e. loading andunloading activities are performed by man­ power. Sub-Article (2) What is meant by "Indonesian citizen individual" are individuals meeting requirements to carry out bust­ ness in the field of people-shipping Se<I transportation. The requirements amongothersareIdentification Card, river and lake ship feasibility letter, statement of domicile,etc. Article 16 .. , ... Article 16 Sub-Article(1) This provision ismeant to be oneofthe efforts to provideprotectionon the continuation of people-shipping sea transportation business, and oriented to meet the market'sdemand,besides carrying out transportationac­ tivities, am also perform loading-unloading<lctlvitie:> and cargoexpedition activities, without reducing the nurturance on other water transportation elements. Sub-Article(2) The development of people-shipping sea trans­ portation business can beperformed by the Government in the form of regulating, nurturing and training thru the utilization of its characteristics. People-shipping sea transportationcanserveriver and laketransportation to the extent it meetsrequirements on route anddepth of the river and lake. What is meant by "improving its capabilityasna­ tional seatransportation business field and fleldof work" isby providingfacilitiesto get capitalfrom financial institu­ tions. Sub-Artide (3) People-shipping sea transport:ltion activitif><; he­ sidesperformingbusiness activitieswithin Indonesianwa­ ters can also visit ports of neighboring countries (border crossing) in the frameworkof carryingout traditionaltrade activitiesbetween countries. Arlide 17 Self-explanatory Business News7713-7714/9-17-2008 5A Article 18 Sub-Article(1) The use of ships flying Indonesian flags by river and lake transportation companiesdomestically is in the framework of implementing the principle of cabotageto protect State sovereigntyand to support the materiehza­ nonof the Archipelagic Concept in the Indonesian archi­ pelago. What ismeant by "Indonesiancitizenindividuals" are individuals meeting requirements to carry out busi­ ness In tne field of people-shipping river and lake trans­ portation. Therequirementsamong others areIdentification Card, river and lake ship feasibility letter, statement of domicile Sub-Article (2) What ismeant by "agreement between the Gov­ ernmentof the Republic of Indonesiaandthe Government of neighboring countries"are the agreement that hadbeen approved by the countries covering amongothers ships' conditions, shipquota, and administration requirements. Sub-Article(3) Self-explanatory Sub-Article(4) What is meant by "intra-mode" in river and lake transportationactivities is ferry transportation. What is meant by "inter-mode" is the integration cf lend trensportetion, sea transportation and air trans portation. The intra-mode and the inter-motif' constitute i'l unityofthe nationaltransportation. Sub-Article (5)..... Sub-Article(5) What is meant by "fixed route" is the services of river and lake transportation performed constantly and regularly, scheduled and stating its visited ports. What is meant by "not fixed and irregular route" are services of liver and lake transportation performed not constantlyand irregularly. Sub-Article (6) What is meant by "permit of the Harbor-master is an approval to sail. Article 19 and Article 20 Self-explanatory Article 21 Sub-ArtiCle (1) Theuse of ships flying Indonesian flags by ferry transportationcompanies domestically is in the framework of implementing the princIpleof cabotageto protect State sovereigntyand to support the materialization of the Ar­ chipelagic Concept. Sub-Article(2) Ferrytransportation activities between the State of the Republic of Indonesia with neighboring countries shall be performedin accordancewith the principleof re­ ciprocal. Sub-Article(3) Self-explanatory Article 22 Sub-Article(1) self-explanatory Sub-Article(2) Letter a andLetter b Self-explanatory Letterc What ismeant by "certain distance" isthat not all of the land separated by waters is connected with ferry Business News7713-7714/9-17-2008 6A transportation, but the landsthat are connected are the development of road nets or railway nets separated by water, by still meeting the characteristics of ferry trans­ portation. Letterd thru Letter f Self-explanatory Sub-Article(3) Self-explanatory Article 23 Self-explanatory Article 24 Sub-Article(1) Usually, the performanceof transportationto and from remote areas is not profitable commerciallymaking transportation performers generally are not attracted to servesuchroutes. Therefore,in order to developsuchareasand to break-up its isolation, traisportetion to and from remote and less developed areaswith developed or progressing areasshall beperformedby the Governmentby induding performers of water transportation, both private andcooperatives. Sub-Article (2) Sub-Article (4) Self-explanatory Sub-Article(5) What is meant by "integrated cross-sector based on regional developmentapproach"isthat the compilation ot proposals on pioneer seatransportation routesshall be coordinated by the regional government by including re­ latedagencies and payingdue observance on the integra­ tion of programsof other sectors suchas trade, estates, transmigration, fishery, tourism, education, and agricul­ ture in the framework of developing potentials of the re­ gion. Sub-Article(6) ..... Sub-Article (6) Self-explanatory Article25 What ismeant by "long term contract" isa term of at least fiveyears, meantto provideguaranteesothat the sea transportation company perfonningthe pioneer-ship­ pingcanperformshiprejuvenation. Article26 Article27 Theobligation to havebusiness permit in the per­ formanceof water transportation ismeant asmeasure of nurturing,controlling andsupervision afwater transporta­ tion to provide certaintyof business and legalplndfor ser­ vicesprovidersand users. Article28 Self-explanatory Article29 Sub-Article (1) "Gr' is the abbreviation of Gross Tonnagemean­ ing the total gross volumeof ship calculated according to provisions of international conventions on the measure­ ment of ships (International Tonnage Measurement of Ships) year 1969. Sub-Article (2) In the frameworkof developing the national ship­ pingindustry, foreigninvestmentisallowed, whereas con­ cerning its ownership shallpay heedto statutory regula­ tions in the field of capitalinvestment. Business News 7713-7714/9-17-2008 7A Article30 and Article 31 Self-explanatory Article32 Sub-Artide (1) Self-explanatory Sub-Article (2) What is meant by "certain goods"are passenger goods, liquid pouredgoodsunloaded or loaded by pipes, dry poured goods unloaded or loaded by conveyors or the like, goods carried by Ro-Ro, and all types of goods in a port where there is no loading-unloading companies. In the meantime, the loading-unloading of goodsother than thosementioned abovemust be madeby loading-unload­ ingcompanies. Sub-Article (3) Self-explanatory Sub-Article (4) What ismeant by "cargodoring" are worksto dis­ mantlegoodsfrom ropesor nets(ex tackle) in docks and transporting rtfrorn the dock to warehouses or collecting fields, further to compilethem in the warehouses or col­ lectingfieldsor viceversa. What is meant by "receiving/delivery" areworks to remove goodsfrom piling-up places in warehouses or collecting fields and to deliver them up to its compilation on vehicles at the doorof the warehouse or collecting field or vice versa. What is meant by "stuffing" are works to pile up goods in containersperformed in warehouses or collect­ ing fields. What is meant by "stripping" are works unloading goods from containers performed in warehouses or collecting fields. Article 33 ..... SA Article33 and Article 34 Self-explanatory Article35 Sub-Article (1) thru Sub-Article (3) Self.-explanatory SUb-Article (4) Tariff types are collectibles on any services pro­ vided by sea transportation performers to usersof sea transportationservices. Tariffstructure isa tarifffonn connected with the time andmeasurement unit of eachtype of transportation service inonetransportationpackage. Tariffgroup isa groupingof tariffstipulated based on the type of services, classification! and facilities pro­ videdbytransportation performers. Art/de 36 andArticle 37 Self-explanatory Article38 Sub-Article (1) Thisprovisionasthe purposesothat transporta­ tion companies do notdiscriminate usersof transportation services tothe extentthe concerned party fulfilled approved transportation agreement. Transportation agreement should be completed with transportationdocumentsstipulated in international agreements aswell as national legislations Sub-Article (2) What is meant by "cargodocument" is the Billof lading or Konosemen or Manifest. Business News 7713-7714/9-17-2008 Sub-Article (3) What is meant by "certain condition" are condi­ tions such as natural disasters! accidents at sea, sodal uprisings nation-wide, and State in danger situation de­ dared officiallyby the Government. Article39 and Article40 Self-explanatory Article41 Paragraph (1) letter a What ismeant by "death or injUryof carriedpas­ sengers" is the death of or injury to passengers due to accidents during transportation and occurringon a ship! and/or accidents during embarkationor disembarkation, in accordaneewith legiSlations. Letterb The responSibility shall be inaccordance withtrans­ portation agreements and legislations. Letterc Such responsibility coversamongothersservices to passengers in the limits of decencywhile awaiting for departure in the event of departure delaysdue to negli­ gence of a water transportationcompany. Letterd WhatIsmeaht by "third party" are Indonesian in­ dividual citizens or legalentitieshaVing noconnection with the operations of ship,but deador injured or undergoing losses due to the operationsof ship. Paragraph (2) Self-explanatory Paragraph (3) ... Paragraph (3) Whatismeantby "basic insurance protection" is the insurance regulated in provisions of legislations in the areaoHASlJI"allCe. ~ ~{1) SpedaLseA'icesfor passenger5who.are-disabled, pregllallt-woman,-children underfive(5) years, sickpeople, and seniorcitizen is meant so that they can enjoy good bansportation savices. Whatismeant by "special facilities"may bein the form of spedallanes in portsand special means to board or get off a ship,or the provisionof space specially pro­ vided for the placement of wheeled chairsor aid means for sickpeople who must be carried in sleeping position. What is meant by "disabled" is e.g. a passengers using wheeled chairsdue toparalysis, lame,or blind, etc. Excluded from the definitionof sickperson in this provision are persons suffering from contagious diseases in ac:cordancewith legislations. What ismeant by "seniordmen" is in~nce with legislations. paragraph (2) Self-explanatory Article43 self-explanatory Article 4'1 self~lanatory Business NeW,s 7713-7714{9-17-2008 9A Article45 Self-explanatory Article46 What is meant by "special ship for transporting hazardous goods" are ships specially designed to carry hazardous goods, amongothersgas, natural011, chemical and radioactive substances. Article47 Self-explanatory Article 48 self-explanatory Article49 self-explanatory Article 50 self-explanatory Article51 self-explanatory Artide 52 self-explanatory Article53 Paragraph (1) self-explanatory l'or..gr3ph(2) Self-explanatory Paragraph (3) . lOA Paragraph (3) What ismeantby "operator'sresponsibility is lim­ ited in nature" is that the responsibility of a multi-mode transportation operatoron losses dueto delays ofdelivery islimitedtoanamountcomparable to two anda half{2 lh }times the transportationcost to be paid onthe delayed goods, howeverit shallnot exceedthe amount of trans­ portation rosts to be paid based on a multi-mode trans­ portationcontract. Theavera" amountof obligation beingthe burden of;) multi-I'(lode transportationoperator shallnot exceed the limit of the obligationcaused by the total amount of losses onthe goods. ArtiCle 54 $elf-explanatory Artide55 Self-explanatory Artide56 Self-explanatory Artide 57 Paragraph (1) Lettera Whatis meantby ·provision offacilitiesin the field of funding andtaxation" is: a. developing a non-bankfinandal institution particularly for funding the procurementof the nationalcommer­ cialarmada; Business Nev.r.; 7713-7714/9-17-2008 b. facilitatingthe availabilityof fund for the development of nationalcommercial armadaboth originating from banksand non-bankfinancial institutionswith an at­ tractive loancondition; and c. providing fiscal incentives tor the devekJpment and pr0­ curementof the nationalcommercial water armada. Lel:tf!r b self-explanatory Letterc self-explanatory Paragraph (2) letter a What ismeant by "integratedship industryzone" isanindustrial centerconsisting of fadities for amongoth­ ersconstruction, treatments, repairs, andmaintenance in­ tegratedwith itssupportingindustries, suchasshipmate­ rial, engines, and ancillaries. Letterb Self-exfl~anatory Letterc self-explanatory Letterd What is meant by "ship raw materialandcompo­ nents" among others are spare-parts and equipmentof ships. Lettere Self-explanatory Letterf Self-explanatory Letterg self-explanatory letterh Self-explanatory Article 58 ..... Artide 58 Self-explanatory Artide 59 Self-explanatory Artk:le60 Paragraph (1) Self-explanatory Paragraph (2) self-explanatory Paragraph (3) Self-explanatory Paragraph (4) What ismeantby"executorial power" isthat hold­ ersof mortgages areentitledto usegrossemortgage deed as legal basis to performan executionwithout any claim process in court. Paragraph (5) Self-explanatory Article51 self-explanatory Article 62 seif-explanatory Article63 Self-explanatory Article64 Self-explanatory Business Ne~ 7713-7714/9-17-2008 llA Article65 Self-explanatory Article66 Paragraph (1) Self-explanatory Paragraph (2) Self-explanatory Paragraph (3) Self-explanatory Paragraph (4) Salvage costsshall be prioritized to other priori­ tized shipping debtssoas not to disturbshipping lanes and port poolslikelyto hinder the traffic of ships. Article 67 Self-explanatory Article68 Lettera Self-explilnntory letter b What is meantby "gateof economy activities" are means for the developmentof the regionaleconomy, na­ tionaleconomy, and internationaltrade activities Lettera thru Letter f Self-explanatory Article 69 Self-explanatory Artide 70 12A Article 70 Sub-Article (1) Letter a What is meant by "sea port" are ports that can be used toserve sea transportation and/or ferry transporta­ tion. Letterb Self-explanatory Sub-Article (2) Letter a Main ports shall function as: a. international port; and b. international hub port What is meant by "international port" Is a main port opened for overseas trade. What is meant by "international hub port" is a main port opened fur overseas trade and functions as transhipment port for goods between countries. Letter b and Letter c self-explanatory Article 71 and Article 72 self-explanatory Article 73 Sub-Artide (1) self-explanatory Sub-Article (2) What ismeant by ''technical feasibility" among oth­ ersconcem condition of the waters (wave, current, depth, and tide) and condition of land (contour of land surface). What ismeant by "environmental feasibility" isthat the place to be used as port location does not disturb the environment, and is in accordance with its allotment. BusinessNews 7713-7714/9-17-2008 Article 74 Sub-Artide (1) self-explanatory Sub-Article (2) letter a What is meant by "main facilities" are, among oth­ ers piers, warehouses, collecting fields, passenger termi­ nals, container terminals, Ro·Ro terminals, waste accom­ modation and processing facilities, bunker facilities, fire fighting facilities, warehouse facilities for hazardous and toxic substance or goods, equipment maintenance and re­ pair facilities, and Shipping - Navigation Aid Means. Letterb What is meant by "supporting facilities" among others are offices area, post and telecommunications fa­ dlities, tourism and hotel facilities, clean water, electricity and telecommunication installation, road and rail nets, waste water, drainage and garbage net, motor vehicle stops, trade zones, industry zone, and other public facili­ ties (religious, parks, recreations, sport, green belt, and health). Sub-article (3) letter a What is meant by "main facilities" among others are shipping lanes, docking waters, port pool for docking and maneuvering of ships, waters for ships transporting hazardous substances or goods, waters for quarantine activities, waters as connecting lanes between ports, pi­ loting waters, and waters for Government's ships. Letter b What is meant by "supporting facilities" among others are facilities for ship building and maintenance, waters for shipping trials, waters for dead ships, waters for emergencies, waters for recreation activities (water tourism). Article 75........ Artide75 Sub-Article (1) Self-explanatory Sub-Artfde(2) What is meant by "geographic coordinate" are coordinates detenninedby latitudeand longitude. Sub-Article (3) and Sub-Article (4) Self-explanatory Sub-Artide(5) What Is meant by "controlled by the state" Isthat the state has control rightson the utilizationof landand/or waters stipulatedasPOrt WorkEnvironment Area and In­ terest EnvironmentAreawhere-inits realization covers the aspects of arrangements, controland supervision. Sub-Article (6) self-explanatory Artide76 Sub-Article (1) Thestipulation of PortMasterPlan aswell asport WorkEnvironmentArea andInterest Environment Area for regional feeder sea port Is stipulated by tlleGovernor, whereaslocal feeder ports are stipulated by the regent! mayor. Sub-Artide(2) self-explanatory Artide 77 thru Artide 79 self-explanatory Artide80 Sub-Artide(1) self-explanatory BuslnessN~ 7713-7714/9-17-2008 13A Sub-Article (2) What is meant by "other governmentactivities" among othersare forestry andminingactivities performed by theagencies having the authority in the contextof pre­ venting illegalloggingand illegalminingenteringand get­ ting out thru ports. Sub-Article (3) thru sub-Article(5) Self-explanatory Article 81 Self-explanatory Articfe82 Sub-Article (1) and Sub-Article(2) self-explanatory Sub-Article (3) One (1) PortAuthon"ty and Port PerformerUnit can·supervise several.ports (cluster). Sub-Article (4) Whatismeant by"otherforms" among othersare leasing of land,warehouse, andcollectingpoints. Agreement shouldat leastcontain obligations and rights of the parties, performanceto be achieved by Port Busi­ nessEntities,and term of concession. Sub-Article (5) and SUb-Article (6) Self-explanatory Artide83 thru Article89 self-explanatory Artide90 Sub-Artide(1) thru Sub-Article (3) Self-explanatory Sub-Artide (4)..... 14A SUb-Altide (4) Whatismeantby "activities supporting the smooth­ nessof operations and providing added value to ports" among others are offices,tourismfacilities and hotel::;, dean water, electridty and telecommunication insta1lation, road and rail nets, waste water, drainage and garbage net, bunkerservices,andbus stDps. Attide91 Sub-Article (1) thru Sub-Artide (3) Self-explanatory Sub-Artide (4) Whatismeant by"in certaincases" isif it isfound out that there are Port Business Entities capable of utilizationg the terminal and other port facilities to serve activitiesgainingoommercial benefits. SulrArtide (5) Self-explanatory Article 92 thru Article95 self-explanatory Artide96 Sub-Artide (1) For regional feeder ports, permits are given by the Governor,whereas for localfeeder ports, permitsare givenby the regent. Sub-Article (2) self-explanatory Business Newsn13-7714/9-17-2008 Article 97 Sub-Artide (1) What ismeant by "operationalrequirements" are Pori: Operational Standard, human r~~UIO"<; operating them, preparedness of other agendessuch asquarantine, customs andexciseand immigrationaccording to require­ ments. Sub-Article (2) For regional feeder ports, permits are given by the Governor, whereasfor local feeder ports,permitsare givenby the regent. Artide 98 thru Artide 101 self-explanatory Article102 Sub-Article (1) What ismeantby "certain activities"areactivities tosupportmainbusiness activities Which cannotbeserved bya port due tothe nature of cargo or itsactivitiesrequire special services or its location is far from the port. Themain business activitiesamong othersare: a. mining; b. enel9Y; c. forestry; d. fishery; e. industry; f. anddockand ship pier Sub-Article (2) Self-explanatory Article 103 thru Article 110 Self-explanatory Articltll1 ... Article 111 SUb-Article (1) thru Sub-Article (3) Self-explanatory SUb-Article (4) Lettera What is meant by "administration aspect" is rec­ ommendation from the governor, regent I mayor and local Harbor Master. Letterb What is meant by "economy aspect" is supporting certain industries with a flow of a great volume of special goods. Letterc What is meant by "aspect of shipping <:;afety and security" is the fulfillment of the depth of waters and port pools, Shipping - Navigation Aid Means, coast radio station including means and infrastructures, aswell as human re­ sources. Letterd What is meant by "aspect of port facility tech­ niques" are basic facilities, supporting facilities, and facili­ ties for the prevention and tackling of pollution. Letter e and Letter f Self-explanatory Sub-Article (5) Self-explanatory Article 112 thru Article 114 Self-explanatory Article 115 Sub-Article (1) Self-explanatory Business News 7713-7714/9-17-2008 15A Sub-Article (2) What is meant by "legislations" are regulations concerning the regional government. Article 116 Self-explanatory Article 117 Sub-Article (1) Self-explanatory Sub-Article (2) Letter a thru Letter f Self-explanatory Letterg What is meant by "Management of Safety and Pre­ vention of Pollution from Ships" is an entirety of system, procedure and mechanism in writing and documented for sea transportation companies and merchant ships for the arrangement, rnalldyement, supervision and review and continuous improvement for the purpose of ensuring and maintaining the fulfillment ofall conformity withstandards of safety and the prevention of pollution required in re­ lated international provisions related with the management ofsafety and prevention of pollution. Letterh What is meant by "Management of Ship's secu­ rity" is an entirety of system, procedure and mechanism in writing and documented for sea transportation companies and merchant Ships for the arrangement, management, supervision and review and continuous improvement for the purpose of ensuring and maintaining the fulfillment of all conformity with the readiness of ship to face, defend, and maintain ship's security in the context of increasing ship's safety. Sub Article (3}..... Sub-Article(3) Self-eq-.lanatory Article 118 Self-explanatory Article119 Sub-Article (1) What is meantby "international requirements" are provisions issued byInter-national Authority of Ughthouse Association (IALA) regulating among others standardiza­ tion as well as the adequacy and reliability of Shipping Navigation Aid Means,International Telecommunication Union (rnJ), andInternational Maritime PilotageAssocia­ tion (IMPA). Sub-Article (2) self--explanatory Article 120 self-explanatory Article 121 What is meant by "Port FacilitySecurity System" is security procedureat port facilities at all security levels. Letter a self-explanatory Letter b Port facilities security means and infra-structure coversecurity fence,guard posts, monitoring equipment, detectorequipment,wmmunic.ationeqUipment and lights. Letterc What is meant by "Communication System" ispro­ ceduretocommunicate Within portfacilities, communication Business News7713-7714[9-17-2008 16A between port security coordinator With port facilities and wifu related agencies. Letterd What is meant by "Security Personnel" are per­ sonnel haVing the knowledge and capability to exercise security in accordancewith security management (Inter­ national Shipand Port Facility Security Codc/ISPS Code). Article 122 and Article 123 Self-explanatory Article 124 Sub-Article(1) What is meant by "procurement of ship" is the activity to bring ships from abroad, both used ship and new ship to be registered in List of Indonesian Ships. What is meant by "ship building" is the bUildingof new shipsboth domestically and overseasdirectly flying Indo­ nesianflag. What is meant by "ship working" is the stage of work and activities when renovation, repairs and mainte­ nanceof ship is performed. What is meant by "ship equipment" are parts in­ cluded in navigation equipment, aid means,smokedetec­ torsand fire extinguishers,ship radioandelectronics, nau­ tirol mapsand publications, and meteorologyobservation ancillariesfor shipswith certain measurementand certain sailingareas. Sub-Article(2) Self-explanatory Article 125 Sub-Article (1) self-explanatory Sub-Article (2) .... 17A Sub-Article (2) What is meant by "renovation" is the renovation of construction requiring the validation of drawingandcal­ culationof the construction due to the change of function, stability,structure,and dimensionof ship. Sub-Article (3) self-explanatory Article 126 Sub-Article (1) safetycertificates are provided toall typesof ships havinga measurement of GT7 (sevenGross Tonnages) or moreexcept: a. Battle Ships; b. Stateships;and c. Ships usedfor sport requirements. Sub-Article (2) Lettera Types of passenger ship certificates are among others: 1. Passenger Ship SafetyCertificate (covering safety of shipconstruction, equipment,and radio); and 2. Exemption certificate (certificate allowing the exernp­ tion from several requirementsthat had to be met). Letterb Types of cargoshipcertificateaccording to SOLAS 1974 areamongothers: 1. cargo ShipSafetyCertificate; 2. cargo ShipConstruction SafetyCertificate; 3. Cargo ShipEquipmentSafetycertificate; 4. cargo ShipRadioSafetyCertificate; and 5. Exemption certificate (certificate allowingthe exemp­ tion from several requirementsthat had to bemet). Business News7713-7714/9-17-2008 Letterc Certificateoffeasihility andmanning offish catch­ ing ships asproofof the fulfillment of requirements of ship safetyand manning. SUb-Article (3) and Sub-Article(4) self-explanatory Sub-Article (5) What is meant by "government officials"are ship safety investigator officials having the qualification and expertise in the field of safetycommissioned by the Minis­ ter. Article 127 thru Article 129 Self-explanatory Article130 Sub-Article (1) self explanatory Sub-Article (2) What is meant by "at any time" IS beyondthe de­ terminedperiodsfor periodicmaintenance dueto necessi­ ties. Sub-Article (3) What ismeant by "certaincondition" isthe provi­ sion of t1ispensation on ship safety requirements in the followingconditions: a. Shipundergoing trial shipping; b. Ships usedto tackle disasters; c. Ships sailingin bad weather and/or encountering mis­ hapscausing damagesor losses to ship'sequipment; d. Ships usedto carry aut search and rescue activities; e. Ships sailingfor docking purpose;or f. Ships. , . , . 18A f. Ships where the type, category, measurement, con­ struction,or base material, byconsidering its shipping area,will not beefficient if certainsafetyequipment or certaincommunication equipmentshouldbe installed. Example: A shipwhere the type, category, measure­ ment,construction, or base material mustmeetrequire­ mentsinaccordance with international provisions, how eversinceitsareaof shippingis localand close, there­ fore requirements of its safety equipment may be ad­ justedwith necessities. Article 131thru 137 Self-explanatory Article 138 Sub-Article(1) thru Sub-Article(3) Self-explanatory Sub-Article (4) What ismeant by "ship's operator" isany person based on certain rights and the ship'sowner operating a ship. Article 139 What ismeantby "deviatingfrom route" isanac­ tion performedby a captain for the purposeof saving in the eventof weatherdisturbances suchastropicalcyclone or hurricane. What is meant by "other required actions" are actionsthat should be taken by a Captainto give help on hearingi:l distress signal from other shipsstatingas being in "dangerand requiring immediateassistance" (Conven­ tions onthe International Regulation for Preventing Colli­ sionsat Sea, 1972/COLREGs). BusinessN~ 7713-7714/9-17-2008 Article 140 Sub-Article (1) thru Sub-Article(3) self-explanatory Sub-Article (4) Whatismeantby "Ship Council" isa council formed on boarda ship consisting of ship'sofficers with the duty to assist and provide recommendation to a temporary re­ placementofa Captainto exercise hisauthority. Sub-Article (5) self-explanatory Article141 Sub-Article (1) What ismeant by "log book" arenotescontaining informationon variousmatter relatedwith the operations of ship. sub-Article (2) Self-explanatory Sub-Article (3) What is meant by "can be usedas evidence" is that the ship log book, being an authentiC note, can be used to prove an event or the presence of a person on board. Artide 142 Self-explanatory Article 143 Sub-Article (1) Lettera thru Letter e Self-explanatory Letterf What ismeant by "indecency" areamongothers: a. influencing ........ a. influencingother peopleto strike, to be late for guard duty and/or to refuseordersof superiors; b. utteringwordsthat are humiliating,slandering, and/or impolite. Sub-Article (2) self-explanatory Article 144 thru Article 154 Self-explanatory Article 155 Sub-Artide (1) 5eIf-explanatory Sub-Article (2) l.ettera What isrneantby "domesticmeasuring method" isa measuring methodstipulatedby the Indonesian Gov­ ernment illlph:::rllelllt:d on Indonesianshipsnot subject to provisions of InternationalCOnventions concerning Ship's Measurement (IntErnational Conventlons On Tonnage Mea­ surementof Ship1969{TMS 1969). letterb What is meant by "international measuring method" isa measuring method stipulated bythe Indone­ sianGovernment based onInternationalConventions con­ cerning Ship's Measurement (InternationalConventions On Tonnage Measurement of Ship1969{TMS 1969). Letterc What is meant by "specialmeasuring method" is a measuring methodusedfor measuring and determining the tonnageof a shipgoing to pass through a certainca­ nal, among others Suez Canal measuring method and Panama canal measuring method. Business News 7713-7714/9-17-2008 19A sub-Article (3) Sub-Article (4) Self-explanatory Article156 Sub-Article (1) Self-explanatory Sub-Article (2) What is meant by "BrandSign" is a seriesof let­ ters andnumbersconsistingof GT,numbersshowing the grosstonnage, numberof measurement letter, and mea­ surementcodefrom the port issuing the measurement let­ ter, Example: GT123 No45/Ba GT : Abbreviation of Gross Tonnage 123 : Gross tonnageof ship No. : Abbreviation of number 45 : numberof measurement letter Ba : measurement codefromthe port issuing the mea surementletter (Ba is the measurement codeof TanjungPriokHarbor). Article157 Self-explanatory Article158 Sub-Artide(1) and Sub-Article (2) self-explanatory Sub-Article (3) What ismeant by "Ship'sRegistration" is the reg­ istrationof ownership right on a ship in accordance with provlslons of legislations. Sub-Article ('1)... Sub-ArtIcle (4) Wh<lt is meant by Mg~ deed of registrationMis an official copyof the minute (original deed of registra­ tion) Proofd ownaship righton a shipIs a document of ownershipsubmitted by a ship owner at the time of registering the ship, in the form of amongothers: 1. For newly built ships (1) :;h ip building contrect b) reportofshiphand-over;and c) statement letter from the dock. 2. Forshipsthat had beenregisteredin anothercountry, among others: a) Billof sa lei and b) Protocol of delivery andacceptance. SUb-Artide (5) What I!:i meant by -Registration Sign" Is e series of Iet:ters and numbers c:oosisI:ing ofyearof registration, mea­ surementrode of place of registration, lXIIlsecutive num­ ber of registrationdeed, and axle of shipcategory. Example: 2008PstNo 499991L 2008 : Yearof ship registration Pst : Codeof placeof registration No. : Number 4999 : Numberof registrationdeed L : Code of shipcategory(l iscategorycodefor rna rine ship,N iscategorycode for fishingship,P is categorycodefor interior ships, i.e. shipssailing on river ancllake). Business News 7713-7714/9-17-2008 2M Artide 159 thru Article 162 Self-explanatory Artide 163 Sub-Artide(!) self-explanatory Sub-Article (2) What is meant by "Marine Letter"Big Pass", and "Small Pass" are Nationality Sign Letter of Ships granted aslegalization to fly Indonesian flag asshipnationality flag including fish-catching ships. Sub-Article (3) What is meant by "river and take waters" are riv­ ers, lakes,dams,canals,and marshes. Artide 164andArtide 165 self-explanatory Article166 Sub-Article (1) What ismeant by "identityof ship" isthe nameof shipandthe portof the place where theship is registered stated on the ship hull, nationality flag flying at the ship stern in accordance with NationalitySignletter given by the Governmentof the countryconcerned. Sub-Artide(2) self-explanatory Article 167 and Artide 168 self-explanatory Article 169 " '.. 21A Article 169 Sub-Article(1) What is meant by "ship of certain type and mea surement" arecargoshipswith a measurement of GT 500 (five hundred Gross Tonnage) or more and passengers ships of all measurements performing international sail­ ing, whereas for ships sailing domestically, its type and measurementshallbe stipulated separately. Sub-Article (2) and Sub-Article (3) Self-explanatorY Sub-Article (4) What ismeant by"institution granted the author­ ity bythe Govemment" are classification agencies acknowl­ edged bythe Government. Sub-Article (5) and SUb-Article (6) self-explanatory Article 170 Sub-Artit\e (1) Whatismeantby "certain measurement" arecargo. shipswith a measurementof GT500(five hundredGross Tonnage) or more and passengers ships of aU measure­ ments performing international sailing,whereasfor ships sailing domestically, its type and measurement shall be stipUlated separately. Sub-Article (2) self-explanatory Sub-Article (3) For ships sailing domestically, regulation on its certificate shall be stipulated separately. Business Ne~s 7713-7714/9-17-2008 Sub-Article(4) thru Sub-Article(6) self-explanatory Article171 self-explanatory Article 172 Sub-Article(1) self-explanatory Sub-Article(2) What is meant by "other certain interests" are amongothersthe indicationof state territory at outermost islandsamong others in the form of lighthoUses. Sub-Article (3) What ismeant by "provisionsof legislations"is in accordance with national provisionsand by observing in­ ternational provisions. The nationalprovisionnamelyIndonesiaNational Standard related with Rooting System "navigation stan­ dard referring to EuropeanStandard)". International provisions are: 1) United Nations Conventions on the law of the Sea (UNCLOS) 82) related with sea lanes of the lndone­ sianArchipelago (ALKI); 2) safety of Ufe at Sea (SOLAS) related with safety of Navigation - ChapterN; 3) Provisions issued by International MaritimeOrganiza­ tion (IMO) relatedwith safety of NaVigation; 4) Provisions Issuedby InlemationCiI HydrographyOrgani­ zation(IHO) relatedwith hydrography;and 5) ProvisiOnS issued by IntanatiOnalAssodatioO MarineAids to Navigation and Lighthouse Authorities (!ALA)related with recommendation on Shipping Navigation AidMeans. Sub·Article (4) ..... Sub-Article(4) What ismeantby "in certain conditions"is if Ship­ ping NavigationAid Meansare used to support activities not for the interest of the public, among others oil plat­ form, dredging, salvage,and special terminal in certain locations. Sub-Article (5) Sub-Artide (6) self-explanatory Article 173and Article 174 5elf-explanatoty Artide175 Sub-Article (1) What Ls meantby "obstacles" are conditions which candistUrb or obstructtransportation trafficonwaterssuch as ships' bodies in shipping lanes. SUb~Artlde (2) and Sub-Artlde (3) 5e1f-explanatoly Mtde176 Sub-Artide (1) Setf-explanatory Sub-Artide (2) What is meantby "certain ships" are warships, stateships, hospitalships,shipd entering a special port for the PUflJ05e of askinghelp or ships providing help to hu­ manwes, ships undergoing trialshipping, andprivate ships performing governmental duties. Artideln self-explanatory Business~s n13-7714/9-17-2008 22A Article 178 Sub-Article (1) Self-explanatory Sub-Article (2) What is meant by "provislons of legislations" is in accor­ dancewith nationalprovisions andobservinginternational provisions in the field of telecommunication,among oth­ ers: 1. Nationalprovisions namelyLaw No. 36 Year1999 con­ cerningTelecommunication; and 2. Internationalprovisions, namelyInternationalTelecom­ municationUnion (ITU) wl1ich had been ratified lastly wit Presidential Decree No. 80 Year 2004 concerning Ratification of Instruments Amendinqthe Constitution and the COnventions of the International Telecommu­ nicationUnion, Marrakesh, 2002andInternationalMari­ time Organization (11'10 Sub-Article(3) thru Sub-Article(5) Self-explanatory Article179and Article 180 self-explanatory ArtiCle 151 SUb-Articte (1) What is meant by "obstacles" are among others the presence of frequency disturbances where its use is not in accordance with its allotment. Sub-Article(2) and Sub-Artide (3) 5eIf-exP'anatDrv Article 182 Sub-Artide (1) and Sub-Article (2) Self-explanatory Article 183 Sub-Article (I) What is meant by "distress communication- is a communication indicating that a station-or mobile unit ot other~rson is in grave d;,nger and need immMiate halp (MAYDAY MAYDAY MAYDAY). "What ismeant by "immediate communication is a communicationcontaining information to ask for helpon sickperson aboard ashipOr information to askfor helpon manover-board(PANPAN PAN). "What ismeant by "safetycommunication" iscom­ municationcontaining informationon: a. the movementof positions of ShippingNavigationAid Means; b. Shipping Navigation Aid Meansbeingextinguished; c. .PreSence ofoildrillingat a position inthe shipping lane; d. The rising of a /Xlral reef; e. The presence of a floating object endangering ship­ ping; f. Support for Search andRescue Operations; or g. Report of thepresence of a phantom ship (SEQJRITY, SECURITY, SEOJRITY) What ismeantby "sta'ldard time transmission" is a transmissionof time signalfor ships,coaststations,and other parties in needof information on time andfor chro­ nometer adjustments. Sub-Article(2) Self-explanatory ArtiCle 184and Article 185 Self-explanatory Business News7713-7714/9-17-2008 23A Article 186 Sub-Article(1) Letter a and letter b self-explanatory Letterr: What is meant by "certain ship crew" are nautical officers responsible on weather condition. Sub-Article(2) self~planatory Article187 Sub-Article(1) thru Sub-Article(4) • self-explanatory Article 188 Sub-Article(1) self-explanatory Sub-Article(2) What Ismeant by "a portion of the performance of shipping lane" is the lane to the specialterminal Sub-Article(3) Self-explanatory Artide 18Y Sub-Article(1) What is meant bV"other interests"areamongoth­ ers port construction, wave-breaker, mining, and other building requiring dredging works likely to cause distur­ bances on shipping lane. Sub-Article(2.) 5elf·explanatory Article 190...• , 24A Artide190thru Artide192 Self-explanatory Article193 Sub-Artide (lJ 5eIf..explanatory ~2) What ismeantbv "certain areas· areamong oth· el$ :the¥./l'lters of the sea Lane of the Indonesian Archi­ ~{AlKI),Traffk:5eparalionScheme (TSS) lane,Ship u.5I\Ip (srs) 8l'ei1t waters stipulated as ShipReporting 5yst8II (SRS). What is imeant by "all infQrmat;ion" are informa­ tionrelated w1t11thesafety~ securityd shipping. Artide 194 Sub-Artide (1) What isilRlilllltlby"CXJIlInwus,drectarGprompUy" i&'Sailing from the open sea amB5lng .....lICsian waters iltld directJy to the ot:helI'open seiI inacwN:iallllo::.wlh Law 111m. 1!l Year 1985conceming the ratifialtiolll flJf lj/niEd Nil­ tilDi:t:onventionsOIl the Lawof the Sea 19S2. Sub-Article (2) Self-explanatory SUb-Article (3) What ismeant by "emergency"isa shipeocoun­ tering mish<lpsor giving to a person or ship encountering mishaps Self-explanatory Sub-Article (4) and Sub-Art/de (5) Self-explanatory Artide 195 Letterathru Letterd Self-explanatory Business News7713-7714/9-17-2008 lettere What ismeant by "provide guarantee"isthe obll" gation of the owner or operator to possess Insurance as­ suranceor to place an amount of money as security to reimburse the dismanationaling of bUilding or installations not used anymore by the owner or operator. Artide 196and Article 197 Self-explanatory Artide 198 Sub~Article (1) What is meant by "pilot obligatory waters" is a water area whichdueto its condition isobligedtoperform pilotingfor shSOOg. Whatis meantby "pilot extraon:Iinarf obIigatmy waters" is a water area which due to its condit:Ion is not obligedto perform piloting, but if a Captainrequiret, may submit a reques: for piloting services. Sub-Artide (2) setf-explanatory Sub-Article (3) Delegation of piloting to Bupl is made in ports ex­ ploltedcommerciallyor special trois. What ismeant by "can bedelegated" is to meet requirements, according to terms, and provisions of legis­ lationsand revocable if the performanceof dutiesare not executed properly. Sub-Article (4) thru Sub-Article(6) Self-explanatory Article 199 and Article206 Self-explanatory Artide 207 ...•. 2SA Article 207 Sub-Article (1) Theexercise of Ifet in the field of shippingsafety andsecurity byHarbormasterisexercised within the Work Environment AreaandInterest EnvironmentArea. Sub-Article (2) Self-explanatory Sub-Article (3) Competence requirements is alsoapplicable for Harbormaster-in fishingportsas regulated in Law No. 31 Year2004wnceming Fishing. Artide20B Self-explanatory Artkle209 Lettera and Letter b self-explanatory Letter c What is meant by "issuance of approval for ship activities in port" are among others issuing permits for weldingactivities,tank cleaning, removalof docking,pro­ hibitingOrpermitting people to get on board, and transfer of loadingof cargo. Letterd thru Letter h self-explanatory Artide 210 andArticle 211 Self-explanatory Artide212 Sub-Article (1) What is meant by "international provisions" is Business News 7713-7714/9-17-2008 concerning safetyof ship and port fadlities (International Shipand Port Facilities SecurityCode / ISPS Code). What is meant by "Harbor master to act as Port Security Committee" is that the Harbor masteron behalf of the Government as Designated Authority (DA) hasthe authority to determinesecuriy level in a port. Sub-Article (2) What ismeantby "may askfor assistance" is that 11 Harbor master hi'll:; the right to ask for support and assis­ tance if required, amongothers if criminal actsoccur. Sub-Article (3) and Sub-ArtIcle (4) Self-explanatory Artide213 Sub-Article (l) Self-explanatory Sub-Article (2) What is meant by "ship letters and documents" are among others Measurementletter, Ship Nationality Letter, SafetyCertificate,Lineof Loading Certificate, Ship Manning Certificate, and loaddocuments. Sub-Article (3) and Sub-Article (4) self-explanatory Article214 What is meant by "ship condition" is information on the generalconditionof ship and its cargo. Article215 W!ldl is meant by "directive lind order of Harbor master" are among others rejecting the arrival of ship, nrrleringthe removal of ship,anddeterminingthe placeto anchor. Article 216 ......." 26A Article 216 and Article 217 self-explanatory Article 218 Sub-Article (1) What ismeantby "in certain condition" is that if a Harbor master receives a report as of an indicationthat a ship does not meet requirements on seaworthiness and security. Sub-Article (2) What ismeantby "provisions oflegislations"cover internationalconventions regulatingon port state control. Sub-Article (3) self-explanatory Artide219 Sub-Article (I) sailingApprovalLetter whlctl Internationallyts re­ ferred to as port clearance shall be issuedafter the fulfill­ ment of requirementson seaworthiness andother obliga­ tion. Sub-Article(2) thru Sub-Article(S) Self-explanatory Article 220 Self-explanatory Article 221 Sub-Article(1) and Sub-Article(2) Self-explanatory Sub-Article (3) What is meant by "can" is if from the result of a preliminary investigation there are information and/or Business News7713-7714/9-17-2008 evidencesof initial proof on the fault or negligencemade bythe captain and/or ship officers. Artide 222 Self-explanatory Article223 Sub-Article(1) What is meant by "maritime daim" according to provisionson arrestofships arises due to: a. losses or damagescaused by the operationsof ship; b. lossof life or serious injuries occurring an land or wa­ ters or seacausedby the operationsof ship; c. damagesto the environment, ship, or cargodueto sal­ vageoperationsactivities or agreementon salvage; d. damagesor damagethreats to the environment,coast line or other interests causedby ships, includingcosts required to take preventive steps on damages to re­ cover the environment, his ship, or its cargo, as well as to recover the environment due to inflicted dam­ ages; e. costsor expenditures related with the lifting, removal, repair of ships induding costs of saving ships and its crews; f. costsfor the use or operations or chartering ships set forth in a charter agreement (charter party), etc; g. costs for transporting goods or passengers all board set forth in a charter agreement, etc; h. 1055 or damages of goods induding boxes or suit-eases transported on the ship; i. loss or damagesto ship 0 goodsdue to accidentat sea (generalaverage); j. towage costs; k. piloting ..... 27A k. piloting.costs; I. costsof goods, ancillaries, ship requirements inclUding containers provided toserveandfor ship's requirements for the operations, handling,savingor repairof ships; m. costs for the construction, re-construction or re-condi­ tloning, repair, changeor equipship's requirements; n. costs of port, canal,dock, harbor, shippinglane,and/ or other rebibutions; o, salary and otfu;lr indebted payment to ship Captain, of­ ficersandcrewsandothersemployed onboard indud­ ingcosts forre-patriation, sodalinsurance fortheir sake; p, disbursements spent for the sake of ship on behalf of owner; q. insurance polish(includinghmutualinsurance call")for shipthat mustbepaidbyshipowneror chartererwith­ out crew or bare boat (demise charterer); r. commission, expenses, broker or agencywhich must be paid in connection with ship on behalf of owner of shipwithout crew (demisecharterer); s. costsfor disputeinconnection with statusof shipown­ ership; t costs for disputearising between co-ownerrelated with the operationsandogains or yield of ship tambsnq; u. costs of mortgageor other encumbrances having the samenatureon ship; v, costs for disputearisingfrom ship saleagreement. Sub-Artide (2) self-explanatory Artide224 SUb-Artide (1) What ismeant by"seamandocument" aredocuments Business News 7713-7714/9-17'2008 on the fderd:ityof seamen and marme work atJfeenwnt. The seaman identity document consists of Seaman Book and Seaman Identity card. What is meant by "registered" is entered into a book on listof shipcrew workingon a shipaccording to his position and the date of on-off legalized by the Harbor master. Artide 22S thru Article229 Self-explanatory Article230 Sub-Article (1) What ismeant by "responsible partyon other ac­ tivity unitsonwater" areamongothersmanagement of oil drilling and oil occommodating fadlities on waters. Sub-Article (2) and Sub-Article(3) Self-explanatory Sub-Article (4) What ismeant by "institution havingthe authority for further handling" isthe nation-wideinstitutionhandling the controlon pollution. Article231 and Article 232 Self-explanatory Article 233 Sub-Article (1) and Sub-Article(2) Self-explanatory Sub-Article (3) Whi:ll is meant by "hazardous and toxic wastes" alsoincludes radioactive wastes. Article234....... 2BA Article 234 thru Article236 Self-explanatoty Article237 Sub-Article (1) What ismeant by "wastes" amongotherscanbe in the form of oil waste, chemical substance, hazardous and toxicsubstance, garbageanddirts. Sub-Article (2) self-explanatory Sub-Article (3) Self-explanatory Article 236 self-explanatory Article239 Sub-Article (1) What ismeantby"certain locations" isthat waste disposal shall not be made in shipping lanes, protection zones, nature reservation zones, national parks, nature tourism parks, cultural and science preservetion zones, coast lines, coral reefareas, mangrovezones, fisheryand cultivationareas, settlementareas, andareas sensitive to pollution. What is meant by "waste disposal" also indudes shipskeleton. Sub-Article (2) Self-explanatory Article 240 Self-explanatory Article241 sub-Article(1) Whatis meant by "trimming of ship" is the actiVity Business News 7713-7714/9-17-2008 of cutting and destroying ships not usedany more, in a safeandenvironmentally soundmanner. Sub-Article (2) Self-explanatory Article242 andArticle 243 self-explanatory ArLil,;I~244 Sub-Article (1) What is meant by "danger"arethreatscaused by external and internalfactors (Dfship). Sub-Article (2) self-explanatory Sub-Article (3) Whatis meantby "person"alsoincludes people in lighthouses that are in danger. What is meant by "other parties"<Iredlflong uth­ ers captainsof other shipspresentaroundthe dangerlo­ cation,coast radiostations,and the nearestoffiCial haVing the authority to follow-upan accidentprocess. Sub-Article (4) Reporting bya captainshallbe madeon anydan­ ger on ship safety both domestically and internationally, both which had caused and likely to cause damages to lanes orbuildings onwater which candiSllJrb shipping safety or not. What is meant by "reporting" is to sendnewsof danger to shipsafety by telecommunication system, among othersCOast RadiO Station,Vessel TrafficInformation Sys­ tem (VTIS), semaphore, morse and other means which canbeused to send message or to attract theattentionof other parties. Article 245 . . . . , Article245andArtide 246 Self-explanatory Article247 What ismeantby "other parties"areamong oth­ ers captains of otherShips presentaroundthe dangerlo­ cation, coast radiO stations, andthe nearest omclal having the authoritytofollow-upanaccidentprocess. Article 248 What ismeantby "reporting" is to send newsof danger toship safety bytelecommunication system, among othersCoast Radio Station, Vessel TrafficInformation 9{5­ tem (VTIS), semaphore, morseand other means which can be used tosend messageor to attract the attention of other partes, Artide249 What ismeantby"proved otherwise" isthat based onevidendng, efforts hadbeentakenandobligation had beenaccomplished based onprovisions of legislations. Article250 andArticle255 self-explanatory Article 256 Sub-Article (1) Whatismeantby"National Transportation Safety Committee" isaninstitutiongrantedthe authorItyto per­ form investigations oncauses of accidents. Sub-Article (2) Self-explanatory Business News 7713-7714/9-17-2008 29A Sub-Article (3) Result of investigation executed by the National Transportation safetyCommittee shall be submitted to the Minister accompanied with recommendation to makecor­ rection on policies related with transportation system, means and infrastructures, as wellas human resources. Article 257thru Article268 self-explanatory Article 269 Sub-Article (1) Shipping informationsystem hasthe purpose to provide information inthefieldof watertransportation and portaffairs aswellastheassurance of shipping safetyand security, and to plOvide mal ine environment protection. Sub-Article (2) and Sub-Article (3) self-explanatory Article 270 thru Article281 Self-explanatory Article 282 Sub-Article (1) What ismeant by "other investigators" are inves­ tigators inaccordance with provisions of legislations, among othersofficers of the Indonesian National Navy. Sub-Article (2) Self-explanatory Article 283 Sub-Article (1) Self-explanatory Sub-Article (2) 30A Sub-Article (2) What ismeantby "taking other actionsaccording to accountable law" isthat in the accomplishment of duty, investigators areobligedto upholdprevailinglaws. Sub-Article (3) Self-explanatory Article 284thru Article 338 self-explanatory Artide339 Sub-Article (1) What is meant by "permit" is a permit to build facilities issued by the regionalgovernment anda permit on operationssubjectto this Law. Sub-Article (2) Self-explanatory Article 340thru Article343 self-explanatory Artide34"l Sub-Article(1) self-explanatory Sub-Article(2) Stipulation of the three (3) yearsterm in this pro­ vision is meant to provide sufficient time to the Govern­ ment to plan the developmentof ports and StateOwned Business Enterprises. For the purpose of such develop­ ment.on the orderof the Minister, the followingstepsshall be performed: a. Evaluation of assetsof the State OwnedBusiness En­ terpriseoperatingport business; and b. To perform overall audit on the assets of the State OwnedBusiness Enterprise operatinq port business. Sub-Article(3) Whatismeantby"remainto be performed byState Owned Dusiness Enterprises"isthat the SmtcOwned BU$i­ nessEnterprises established based on Government Regu­ lation No. 56 Year 1991, GovernmentRegulation No. 57 Business News7713-7714/9-17·2008 Year1991,GovernmentRegulation No.58 Year1991and Government Regulation No. S9 Year 1991, shallstill per­ form business activities in ports covering: a. activities regulated in Article 90 Sub-Article(1), Sub­ Article (2), Sub-Article (3) and Sub-Article (4) of this law; b. provisions of portpools according to itsallotmentbased on delegation from the Governmentand provisions of legislations; c. performanceof pitoting services based on delegation from the Governmentand provisions of leg"islatiollS; d. provision andexploitationof landaccording to require­ ments based on delegation from the Government and provisionsof legislationsin the field of landaffairs. Article345 thru Article 349 5eIf-ex.planatory Article 350 What is meant by "must be stipulated"isstipulat­ ingseveral main portsas internationat hubindudingevalu­ ating the intematlOllal hub ports that had been stipulated before theenactmentof this Law. Article 351 Sub-Article (1) What ismeant by "evaluatedand confurmed"in­ cludes the presence of fish ports within the WorkEnviron­ ment Areaand Interest EnvironmentAreaof the port. Sub-Article (2) Self-explanatory Article352thru Article 355 self-explanatory SUPPLEMENTTOREPUBUCINDONESIA STATE GAZETTE NO.4849 ;;;;;;;;;;;:{D)===