In brief
Minister of Transportation Regulation No. 14 of 2023 on Amendment to Minister of Transportation Regulation No. 4 of 2022 on Services for Foreign-flagged Yachts and Cruise Ships (MOT 14/2023), which came into effect on 23 May this year, expands the ports that are available for foreign-flagged cruise ships and yachts to enter and exit Indonesian waters. Foreign-flagged cruise ships and yachts are allowed to sail in Indonesian waters if they have obtained the following:
- A sailing license issued by the harbormaster
- A vessel declaration issued by the Head of Customs Office or the appointed customs and excise official at the entry point
Specifically for cruises, a clearance approval for Indonesian territory from the Ministry of Foreign Affairs via an electronic portal (https://e-cait.kemlu.go.id/#) is also required.
Within Indonesian waters for foreign-flagged cruises and yachts
Although Indonesia applies the cabotage principle, i.e., all vessels operating in Indonesian waters have to fly the Indonesian flag and be manned by Indonesian crew, foreign cruise ships and/or yachts used for tourism purposes may be exempted, on the condition that they will not be sold and/or be leased to other parties when sailing in Indonesian waters, and/or they will not transfer passengers – for yachts sailing in Indonesia, except in an emergency.
MOT 14/2023 has increased the entry and exit points for foreign-flagged yachts in Indonesia to 29, and increased the points for embarkation and/or disembarkation for foreign-flagged cruise ships in Indonesia to 12. Through these additions, the Government of Indonesia aspires to create a better and more seamless travel experience for visitors travelling on foreign-flagged cruise ships and yachts and boost further investment and economic opportunities.
Up to three years of customs facilities
Vessel declaration is a relatively simple customs declaration applicable exclusively for foreign-flagged cruise ships and yachts that functions as a temporary import customs declaration, a guarantee letter, and an export customs declaration. Through vessel declarations, the government provides an exemption from import duties for foreign-flagged cruise ships and yachts along with their spare parts, a facility for easier import and export customs declaration, an exemption from fulfilling border and post-border import licensing, and an exemption from the obligation to declare transportation customs (pemberitahuan pabean pengangkutan). Once issued, the vessel declaration will be valid for up to three years.
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