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Port Business License Evaluation: Report to Avoid License Revocation

Port Business License Evaluation: Report to Avoid License Revocation

CLIENT ALERT : MARCH 2018 Practice Group: Transportation

To avoid business license revocation for Port Business Entities, Director General of Marine Transportation of Ministry of Transportation (“MOT”) has urged 223 entities listed as Port Business Entities in Indonesia to report their operating licenses adjustment and business activities to MOT before the end of March 2018.

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MOT through Director General of Marine Transportation of MOT Circular Letter No. PP.001/1/4/DJPL_18 on Evaluation of Business License for Port Business Entities dated February 5, 2018 (“Circular Letter February 5,2018”) has set specific period for all port business entities in Indonesia to adjust their operating license and deliver their business activity report at the latest on February 28, 2018. However, the MOT confirmed verbally to extend the said period to March 31, 2018. The report would be used as evaluation for the entities’ port business license validity. The evaluation is performed due to lack of port business entities fulfilling their obligation to obtain a concession.

The Circular Letter February 5,2018, restating and regulating the following matters:

  1. period of port business licence is only valid for 5 years;
  2. specific provisions for port business entity obtaining its license before the issuance of MOT Regulation No. PM 51 of 2015 on Seaport Operation are:
    1. port business entity has to adjust its license within 3 years since February 24, 2015; and
    2. port business entity has to obtain a concession within 3 years since February 24, 2015 and should the concession has not been obtained then its license will be automatically invalid.

 

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