Home Blog How to Set up a Shipping Business in Indonesia Uncategorized How to Set up a Shipping Business in Indonesia InCorp Editorial Team 1 April 2020 4 minutes reading time Table of Contents Why Start a Shipping Business in Indonesia How to Start a Shipping Business in Indonesia How Cekindo can Assist in Establishing Your Shipping Company Many foreigners are attracted to Indonesia as a place to start their entrepreneurial journey. Thanks to Indonesian reform policy in recent years, now the time it takes to complete all the legal procedures for starting a business in Indonesia has been significantly reduced. There is a wealth of options for starting a business in Indonesia as the country has diverse industries and sectors that are thriving and delivering excellent results – one of those is the shipping business. The fast-paced growth of shipping business in Indonesia is undeniable. In Indonesia, water transport or shipping via water is the most important form of transport in the country as Indonesia is an archipelago consisting of 17,504 islands; and about 66% of Indonesian territory is surrounded by water. Indonesia connects with countries from all over the world through its shipping business and particularly in Southeast Asia. Every day, shipments in large volumes leave and enter Indonesia and that’s why foreign investors are eyeing on the shipping industry, believing that the shipping business is one of those they will gain significant profits from. Of course, there are laws and regulations that govern the shipping industry. These regulations are enacted to protect the maritime and shipping industries, as well as to provide more opportunities for foreign investments. In this article, you will gain insights into how to set up a shipping business in Indonesia. Why Start a Shipping Business in Indonesia The shipping companies in Indonesia have contributed a lot to the country’s GDP – approximately 11%. It means that there are plentiful opportunities for starting a business in Indonesia in the shipping industry, especially during this time when the market conditions are thriving evidenced by the heavy investments. To support the growth and to encourage more investments, the Indonesian government has also introduced several initiatives such as major port development. At present, the Indonesian Shipbuilding Association (Iperindo) has 117 shipyard companies with the operation of 27,000 commercial vessels at major ports across the country. Most of the shipping companies are in East Java, Surabaya and Batam. In addition to port shipping business opportunities, shipbuilding activities have also become more prominent – another area for investors to dive into. However, the Indonesian government has set restrictions for foreign investors to participate in the shipbuilding sector and designed attractive incentives for domestic investors to get into the market. How to Start a Shipping Business in Indonesia Starting a business in Indonesia in the shipping industry is possible for foreigners. Allowed maximum foreign ownership in a shipping company in Indonesia is 49% in order to protect local investments. Therefore, foreign investors need to partner with a local company in order to set up a shipping company. Process and Requirements for Setting Up a Shipping Company in Indonesia Starting a shipping company in Indonesia is only possible through the share distribution schemes under the Shipping Law of Indonesia. Below is the process that you need to go through before you are able to run your shipping business. Seek a local partner Incorporate a company in accordance with Indonesian Company Law Register for a business license Acquire Sea Transportation Business License (SIUPAL) upon the receipt of temporary business license Obtain general vessel certificate and ship radio station certificate for each shipping vessel Export and import business licenses if the shipping company is involved in exports and imports How Cekindo can Assist in Establishing Your Shipping Company The foundation of any successful business ventures in Indonesia lies with choosing the right legal entity at the beginning and proceeding with the subsequent steps with an effective business plan or strategy. The decisions will affect the performance and operation of your business. Our competent team at Cekindo will assist in establishing your shipping company by creating and implementing the best strategy and approach, and we assure you that you can rely on us. Connect with us to know more of our business formation services. Fill in the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What is the difference between PT and CV? You can find the difference below: PT: limited liability company (shareholders are not legally liable for company liabilities) CV: a proprietary company where liability falls on the shareholders Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia? It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment. Is it safe to register a product under a local distributor? Yes and no. It is vital to choose a reliable distributor as they will register the product under their company and become the product license holder and the import license holder. Changing the local distributor is easier if you are satisfied with the cooperation. Is halal registration required for all products in Indonesia? Under the latest regulations on Halal Product Assurance, the mandatory requirement for halal certification has been expanded to encompass a wide range of consumer products in Indonesia. This change, which was previously voluntary, now dictates that various items must obtain halal certification. Initially, the certification focus has been on food and beverage products, with the deadline for compliance set for October 17, 2024 Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized How to Open an Indonesian Bank Account? Read more A Guide to Trading Cryptocurrency in Indonesia Read more Quota-Based Fishing in Indonesia and How It Can Benefit Foreign Investors Read more