Draft Regulation of the Minister of Transportation on Pilotage of Ship Sets Out Delegation of Authority

The Ministry of Transportation (“Kemenhub”) is preparing Draft Regulation on Pilotage of Ships that establishes the mechanism for delegating the provision of ship pilotage services to Port Business Entities (“BUP”) and Special Terminal operators (“Tersus”). 

Nurdiansyah, Head of the Legal and Cooperation Division at the Secretariat of the Directorate-General of Sea Transportation of the Ministry of Transportation, stated that the draft provides a legal basis for delegating responsibility for the provision of ship pilotage services to parties that meet the requirements. “This responsibility can be delegated to Port Business Entities that meet the requirements, as well as to operators of special terminals,” he said.

Under the proposed new regulations, the delegation of pilotage services will be prioritized for Port Business Entities that meet technical and administrative requirements. If there are no Port Business Entities in a given region that meet these requirements, the authority may be transferred to Special Terminal operators to ensure that ship pilotage services continue to operate.

This scheme was developed as an effort to address the limitations in human resources, budget, and infrastructure faced by port operators. Prospective pilotage service providers receiving the delegation of authority must undergo a selection process. This process is conducted to ensure that the designated operators possess the capability and capacity to carry out pilotage services.

Both the BUP and the selected Tersus operator will be responsible for providing competent human resources, pilot ships that meet seaworthiness requirements, and fulfilling their obligations to remit Non-Tax State Revenue (“PNBP”) in accordance with applicable regulations.