A foreigner cannot directly own and commercially operate an Indonesian-flagged vessel. What the law allows after Law 66/2024 — the structures that hold, and the ones that are illegal.
Article 8 of Law 17/2008 reserves domestic sea carriage of passengers and goods for Indonesian-flagged vessels owned by Indonesian shipping companies. That covers every commercial phinisi charter in Komodo, Labuan Bajo and Bali.
For a new PMA seeking a SIUPAL or SIOPSUS after October 2025, the minimum vessel size rose from 5,000 GT to 50,000 GT. A 30 m phinisi typically measures 75–200 GT.
Most commercial charters operate as Angkutan Laut Wisata (sea tourism transport). It sits inside the sea-transport sector, so the 49% cap still applies — a route within the cap, not around it.
Hold up to 49% of a KBLI 50113 PT PMA, lend to the Indonesian PT that owns the hull, or join a profit-share JV. The Indonesian entity keeps control.
Nominee deals, where an Indonesian holds majority shares on a foreigner's behalf, are void under Article 33 of Investment Law 25/2007. Commercial charter under a foreign flag breaks cabotage.
Articles 160 and 167 of Law 17/2008 effectively bar bareboat-chartering out Indonesian-flagged vessels. Foreign capital enters through equity or debt in the owning Indonesian entity, not flag separation.
Ownership is only the first layer. The stack runs grosse akta, surat ukur, SIUPAL or SIOPSUS, BKI class, annual safety certificates and a local TDUP tourism registration.
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Article 8 of Law 17/2008 reserves domestic sea carriage of passengers and goods for Indonesian-flagged vessels owned by Indonesian shipping companies. That covers every commercial phinisi charter in Komodo, Labuan Bajo and Bali.
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For a new PMA seeking a SIUPAL or SIOPSUS after October 2025, the minimum vessel size rose from 5,000 GT to 50,000 GT. A 30 m phinisi typically measures 75–200 GT.
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Most commercial charters operate as Angkutan Laut Wisata (sea tourism transport). It sits inside the sea-transport sector, so the 49% cap still applies — a route within the cap, not around it.
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Hold up to 49% of a KBLI 50113 PT PMA, lend to the Indonesian PT that owns the hull, or join a profit-share JV. The Indonesian entity keeps control.
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Nominee deals, where an Indonesian holds majority shares on a foreigner's behalf, are void under Article 33 of Investment Law 25/2007. Commercial charter under a foreign flag breaks cabotage.
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Articles 160 and 167 of Law 17/2008 effectively bar bareboat-chartering out Indonesian-flagged vessels. Foreign capital enters through equity or debt in the owning Indonesian entity, not flag separation.
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Ownership is only the first layer. The stack runs grosse akta, surat ukur, SIUPAL or SIOPSUS, BKI class, annual safety certificates and a local TDUP tourism registration.
Each is legal, and in each an Indonesian entity controls the vessel. The right one depends on the control you need and how well you can vet your partner.
Short answers. Information, not legal advice — engage Indonesian maritime counsel before any structure is signed.
A foreign-flagged private yacht may cruise Indonesian waters under the e-clearance and vessel declaration system that replaced CAIT — recreational cruising only, no commercial carriage. It cannot be stationed permanently without periodic departure and re-entry, and port dues apply. Any commercial use triggers cabotage rules, whatever the owner's nationality.
It is a cabotage violation: domestic commercial carriage without Indonesian flag or operating licences. Detentions of suspected illegal charters have been reported in Raja Ampat and Komodo waters from 2018 through 2024. Enforcement is sporadic, but the legal exposure is the same whether or not a boat is stopped.
PMAs licensed before the October 2025 commencement are grandfathered; their SIUPAL or SIOPSUS licences continue under the old framework. The 50,000 GT minimum applies to new PMA registrations only — which makes an established, licensed company worth materially more than starting from scratch.
No. Article 33 of Investment Law 25/2007 voids these agreements. Signing makes both parties party to an illegal agreement: the foreigner has no enforceable ownership, and the nominee can walk away with the asset. Licence revocation and, in serious cases, criminal liability are documented consequences.
The grosse akta kapal is the vessel ownership title deed issued by Ditjen Hubla — the equivalent of a land title. Before buying a used phinisi, a maritime lawyer must search it to confirm the registered owner, check for outstanding maritime liens and trace the title chain to original registration.
The seven-layer certification stack, in the order you need to complete it.
49% caps, Law 66/2024, and why the old route narrowed for new entrants.
Dari KBLI 50113 dan SIUPAL sampai sertifikat keselamatan tahunan.
Cara membaca rantai kepemilikan dan mengecek hipotek sebelum membeli kapal.
Surat-surat yang wajib dicek sebelum membeli: grosse akta, surat ukur, pas besar.
The seven-stage roadmap, from defining the mission to planning the exit.
Describe the purchase, build or acquisition. We help you frame the right questions and point you toward Indonesian maritime counsel before any money moves.
