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Government Regulation No 69/2001 dated Octoberr 17, 2001

SEAPORT AFFAIRS

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering :

a. that in the framework of implementing the regional autonomy, regional governments are given role in the management of seaport affairs;

b. that regulation on seaport management need to be revised and re-arranged so as to be in line with the regional autonomy;

c. that based on the considerations in letters a and b, it is deemed necessary to replace Government Regulation No 70/1996 on seaport affairs;

In view of :

1. Article 5 paragraph (2) of the Constitution of 1945 as already amended by the Second

Amendment to the Constitution of 1945;

2. Law No 21/1992 on navigation (statute Book of 1992 No 98 , Supplement to Statute

Book No 3493);

3. Law no 1/1995 on state limited liability companies (statute Book of 1995 No 13,

Supplement to Statute Book No 3587);

4. Law No 22/1999 on regional administration (Statute Book of 1999 No 60, Supplement to

Statute Book No 3839);

5. Law No 25/1999 on the financial equilibrium between the central government and

regional government (Statute Book of 1999 No 72, Supplement to Statute Book No 3848);

6. Government Regulation No 12/1998 on limited liability companies (Statute Book of 1998 No 15, Supplement to Statute Book No 3731) jo Government Regulation No 45/2001 on the amendment to Government Regulation NO 12/1998 on limited liability companies (Statute Book of 2001 No 68, Supplement to Statute Book No 4101);

7. Government Regulation No 25/2000 on the authority of the government and the authority of provinces as autonomous regions (Statute Book of 2000 No 54, Supplement Book No 3952);

DECIDES

To Stipulate :

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CHAPTER I

GENERAL PROVISION

Article 1

Referred to in this government regulation as :

1. Seaport shall be a place consisting of mainland and surrounding waters with certain

boundaries as a venue of public administration and economic activities, which is used as the place of ships to take shelter or berth, load and discharge passengers and/or load/ upload goods that is equipped with navigation safety facilities and seaport supporting activities as well as place of the intra and inter-transport moda change;

2. Seaport affairs shall include all matters connected with seaport operational activities and other activities to perform the function of a seaport to support the smooth,, safe and orderly traffic of ships, passengers and/or goods, navigation safety, place of intra and inter-moda transfer as well as to boost the national and regional economies;

3. General seaport shall be a seaport managed for public navigation interest;

4. Mainland seaport shall be a certain be a certain area in the main land having clear

boundaries, equipped with loading/ unloading facilities , collection square and warehouses as well as transport infrastructures and facilities of goods by means of special packaging and functioning as a general seaport;

5. Special seaport shall be a seaport managed for personal interest to support certain

activities;

6. Navigation safety shall be a condition in which requirements for safety of transportation on waters and seaport affairs are fulfilled;

7. General seaport operators shall be seaport technical executing units/working units or seaport management companies;

8. Special seaport operators shall be the central government, provincial governments,

regency/city governments or Indonesia statutory bodies having licenses to manage special seaport;

9. Seaport technical executing units/working units shall be organizational units of the

government, provincial governments and regency/city governments;

10.Seaport management companies (BUP) shall be states owned enterprises and/or regional administration owned companies specifically established to provide seaport services at general seaport;

11.Indonesia statutory bodies shall be business entities owned by the state and/or regional administration and/ or private companies and/or cooperatives;

12.Seaport working area shall be waters and mainland area at general seaport directly used for seaport activities;

13.Seaport interest area shall be waters area around the working area of a general seaport used for guaranteeing navigation safety;

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function, classification, kind, operation, activity, intra and inter-mode integration as well as integration with other sectors;

15.The government shall be the central government;

16.Minister shall be the minister responsible for navigation affairs;

17.Governor shall be the head of a provincial region as meant in the regional autonomy

legislation;

18.Regent shall be the head of a regency as meant in the regional autonomy legislation;

19.Mayor shall be the head of city as meant in the regional autonomy legislation.

CHAPTER II

NATION SEAPORT ARRANGEMENT

Article 2

1. Seaport as a navigation element shall be a place to provide seaport services, implement public administration activities and other economic activities, which is managed integrated to realize the provision of seaport services in accordance with the degree of the need.

2. The seaport as meant in paragraph (1) shall be managed in a unit of the national seaport arrangement to realize the operation of seaport which is reliable, and highly capable, guarantees national efficiency and global competitiveness in the framework of supporting the national and regional development.

3. The national seaport arrangement as meant in paragraph (2) shall be stipulated by the minister.

Article 3

1. The national seaport arrangement as meant in Article 2 paragraph (2) shall be formulated by observing :

a. regional layout;

b. national transportation system;

c. economic growth;

d. national and international sea transport patterns/ lanes;

e. environmental conservation

f. navigation safety; and

g. national standardization, criteria and norms.

1. The national seaport arrangement as meant in paragraph (1) shall contain at least

activities, role and functions, classifications and kinds of seaport .

Article 4

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seaports serving the following activities :

a. sea transport hereinafter called seaports;

b. river and lake transport hereinafter called river and lake harbors;

c. ferry transport hereinafter called ferry harbors.

1. seaports according to role as meant in article 3 paragraph (2) shall constitute :

a. a knot in transportation networks according to their hierarchy;

b. gateway of regional, national and international economic activities;

c. inter-change place of transport moda;

d. support of industrial and trading activities;

e. distribution, consolidation and production place.

1. seaports according to the function as meant in Article 3 paragraph (2) shall be directed to serve :

a. public administration activities;

b. seaports –based service activities;

c. regional service activities;

d. seaport supporting activities.

1. seaports according to the classifications as meant in Article 3 paragraph (2) shall be stipulated by observing:

a. seaport facilities;

b. seaports operational activities;

c. role and function of seaports.

1. seaports according to the kind as meant in Article 3 paragraph (2) shall consist of :

a. general seaports used for serving public interest;

b. special seaports used for personal interests to support certain activities.

Article 5

1. The hierarchy of role and function of seaport as meant in Article 4 paragraph (1) letter a shall consist of :

a. hub international seaports being the main primary seaport;

b. international seaport being the main secondary seaport;

c. national seaport being the main tertiary seaport;

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e. local seaport being the enticing secondary seaport.

1. The hierarchy of role and function of the ferry seaports as meant in Article 4 paragraph (1) letter c shall consist of :

a. inter-provinces and state ferry seaport;

b. inter-regency/city seaport;

c. intra-regency/city seaport.

1. The hierarchy of role and function of the special seaports as means in Article 4 paragraph (5) letter c shall consist of :

a. national / international special seaports;

b. regional special seaports;

c. local special seaports.

Article 6

1. The hub international seaport being the main primary seaport as meant in Article 5

paragraph (1) letter a shall be stipulated by observing :

a. affinity to international markets;

b. affinity to international shipping lanes;

c. affinity to lanes of Indonesia’s archipelago sea channel;

d. role as the place of loading transfer of international passengers and goods;

e. certain distance to other hub international seaports;

f. having seaport technical condition protected from wave with certain size of mainland and waters;

g. volume of loading and unloading activities.

1. The international seaport being the main secondary seaports as meant in Article 5

paragraph (1) letter b shall be stipulated by observing :

a. affinity to national and international shipping lanes;

b. as the place of loading transfer of national passengers and goods;

c. certain distance to other international seaports;

d. having seaport technical condition protected from wave with certain size of mainland and waters;

e. volume of loading and unloading activities.

1. The national seaport being the main tertiary seaport as meant in Article 5 paragraph (1) letter c shall be stipulated by observing :

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driving up regional growth;

b. as the place of loading transfer of national passengers and goods and capable of handling semi containers;

c. certain distance to other national seaports;

d. certain distance to national shipping lanes/routes;

e. having seaport technical protected from wave with certain size of mainland and waters;

f. affinity to inter-island shipping lanes/traffic;

g. located in (close to ) regional growth centers of regency/city capital and national growth areas;

h. volume of loading and unloading activities.

1. The regional seaport being the enticing primary seaport as meant in Article 5 paragraph (1) letter d shall be stipulated by observing :

a. government policy supporting economic growth centers;

b. provinces and equal distribution of development between provinces;

c. function as at the place of service for inter-regency/ city passengers and goods;

d. certain distance to other regional seaports;

e. having seaport technical condition protected from wave with the certain size of mainland and waters;

f. volume of loading and unloading activities.

1. The local seaport being the enticing secondary seaport as meant in Article 5 paragraph (1) letter e shall be stipulated by observing :

a. government policies to support economic growth centers;

b. regencies/cities and equitable distribution as well as the enhancement of regency/city development;

c. function to serve inter-district passengers and good within a regency/city for the need of sea and/or water transport moda;

d. having seaport technical condition protected from wave with the certain size of mainland and waters;

e. volume of loading and unloading activities.

Article 7

1. The inter-province and inter-state ferry seaport as meant in Article 5 paragraph (2) letter a shall be stipulated by observing the function of road that it links, namely national and inter-state road.

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3. The inter regency/city ferry seaport as meant in Article 5 paragraph (2) letter c shall be stipulated by observing the function of road that it links, namely regency/city road.

Article 8

1. The national/international special seaport as meant in Article 5 paragraph (3) letter a shall be stipulated by the following criteria :

a. the weight of ship is 3,000 DWT or more;

b. the length of tier is 70 M’ or more,

c. the depth in the front of tier is 5 M’ LWS or more;

d. providing service for dangerous and poisonous materials (B3);

e. serving inter-province and international shipping activities.

1. The regional special seaport as meant in Article 5 paragraph (3) letter b shall be

stipulated by the following criteria :

a. the weight of ship is more than 1,000 DWT and less than 3,000 DWT;

b. the length of tier is less than 70 M’ with the concrete/steel construction;

c. the depth in the front of tier is less than 5 M’ LWS;

d. not providing service for dangerous and poisonous materials (B3);

e. serving inter regency/city shipping activities in a province

1. The local seaport as meant in Article 5 paragraph (3) letter c shall be stipulated by the following criteria :

a. the weight of ship is less than 1,000 DWT;

b. the length of tier is less than 50 M’ with the wood construction;

c. the depth in the front if tier is less than 4 M’ LWS;

d. not provider service for dangerous and poisonous materials (B3);

e. serving intra –regency/city shipping activities.

Article 9

1. The general seaport as meant in article 4 paragraph (5) letter a shall be operated by :

a. the government , whose implementation can be delegated to state –owned enterprises;

b. provincial and regency/city government, whose implementation can be delegated to

regional administration –owned enterprises.

1. The special seaport as meant in Article 4 paragraph (5) letter b shall be operated by the government, provincial government, regency/city governments and Indonesia statutory bodies.

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is stipulated by observing :

a. government policies to support economy;

b. functioning to serve the transport of raw materials, production and production supporting equipment;

c. having certain distance to general seaports;

d. having seaport technical condition protected from wave with the certain size of mainland and waters areas.

4. The general and special seaport according to the operation shall be distinguished by :

a. seaports open for international trade;

b. seaport not open for international trade.

Article 10

Further provisions on the activity, role and function, classification, kind and hierarchy of the seaports as meant in Article 4 and 5 shall be regulated by a decree of the minister.

Article 11

1. the minister shall execute seaport related fostering which covers aspects of regulation, supervision and control over activities of development, enhancement of efficiency and development of seaport to create the national seaport arrangement

2. The regulatory activity as meant in paragraph (1) shall include the activity of stipulation of policies on the seaport affairs.

3. The supervisory activity as meant in paragraph (1) shall cover :

a. the monitoring and evaluation of development, operational and expansion activities of seaports;

b. correction of development, operational and expansion activities of seaports.

1. The controlling activity as meant in paragraph (1) shall include :

a. granting directives and guidances in the implementation of development, operational and expansion activities of seaports; and

b. guiding and counseling communities with regard to rights and obligations of users of

seaports services.

1. In order to ensure the smooth implementation of the seaport-related fostering by the

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CHAPTER III

STIPULATION OF SEAPORT LOCATION,

SEAPORT MASTER PLANS, SEAPORT WORKING AREAS

AND SEAPORT INTEREST AREA

Part One

Stipulation of seaport location

Article 12

1. The minister shall stipulate seaport location on he basis of the national seaport

arrangement, after securing recommendations from provincial governments, regency/ city governments in accordance with their authority to ensure the integration with spatial plans of provinces and regencies/ cities.

2. The seaport location as meant in paragraph (1) shall be set forth on the basis of

geographical coordinate.

3. In the stipulation of the seaport location as meant in paragraph (1), the following aspects shall be observed :

a. national seaport arrangement;

b. lay-out plans of regencies/cities and spatial plans of provinces;

c. technical feasibility;

d. economic feasibility;

e. economic growth and social development;

f. environmental feasibility;

g. integration of intra and inter moda;

h. accessibility to hinterland;

i. navigation security and safety; and

j. state defense and security.

1. Further provisions on guidelines for the stipulation of seaport location as meant in

paragraph (1) shall be set forth by a decree of minister .

Part Two

Seaport Master Plans

Article 13

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2. Seaport master plans shall be formulated by observing :

a. national seaport arrangement;

b. lay-out plans of regencies/cities and spatial plans of provinces;

c. navigation security and safety;

d. harmony and balance with other related activities in locations of seaports;

e. technical, economic and environmental feasibility;

f. related licenses already obtained.

1. The seaport master plans as meant in paragraph (1) shall include :

a. land allocation plans;

b. waters allocation plans

1. The land and waters allocation plans as meant in paragraph (3) for determining the need for placement of seaport facilities and operational activities shall cover :

a. seaport service activities;

b. public administration activities;

c. region-based service activities;

d. seaport supporting activities.

1. The land allocation plans as meant in paragraph (3) letter a for the provision of activities of :

1. Principal facilities shall include :

a. tier;

b. line warehouse;

c. line 1 collection square;

d. passenger terminal;

e. container terminal;

f. ro-ro terminal;

g. waste collection and treatment facilities;

h. bunker facilities;

i. fire extinguisher facilities;

j. warehouse facilities of dangerous and poisonous materials / goods (B3);

k. maintenance and repairing facilities of navigation auxiliary equipment and

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1. Supporting facilities, shall include :

a. office building complex;

b. post and telecommunications facilities;

c. tourism and hotel facilities

d. drinking water, electricity and telecommunications installations;

e. road and railway track network;

f. waste water, drainage and garbage network;

g. seaport development area;

h. waiting place of motor vehicles;

i. trading complex;

j. industrial estate;

k. other public amenities (worship place, park, recreational place, sport facilities, green lane and health facilities.

1. The waters allocations plans as meant in paragraph (3) letter b for the provision of

activities of :

1. principal facilities shall include :

a. shipping lane;

b. berthing waters;

c. seaport pool for the need of docking and turning basin;

d. waters for loading transfer of ships;

e. water for ships carrying dangerous materials/ goods;

f. water for quarantine activities;

g. water for intra-seaport connecting lane;

h. waters for piloting purpose;

i. waters for government ships.

1. supporting facilities, shall include :

a. waters for long-term seaport development;

b. waters for ship building and maintenance facilities ;

c. waters for place of trial run of ships (sailing test)

d. waters for place of dead ships;

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f. waters for recreational activities (marine tourism)

Article 14

1. Operators of seaports shall propose the stipulation of seaport master plans to the minister, governors, regents/mayors in accordance with their scopes of authority.

2. Seaport master plans for seaports shall be stipulated as follows :

a. hub international, international and national seaports are stipulated by the minister after securing recommendations from governors and regents /mayors;

b. regional seaports are stipulated by governors after securing recommendation from regents / mayors;

c. local seaports are stipulated by regents/ mayors.

1. Seaport master plans for ferry harbors shall be stipulated as following :

a. inter-provinces and inter-state ferry harbors are stipulated by the minister after securing recommendations from governors and regents/mayor;

b. inter-regency / city ferry harbors are stipulated by governors after securing

recommendations from regents/ mayors;

c. intra-regency/city ferry harbors are stipulated by regents/mayors.

1. The seaport master plans shall become the binding basis for the stipulation of policies to execute seaport development, operational and expansion activities in accordance with their roles and functions.

Article 15

1. In the stipulation of the seaport master plans as meant in Article 14. The minister,

governors, regents/mayors shall examine the following aspects :

a. national seaport arrangement;

b. navigation security and safety;

c. land and waters utilization plans;

d. short, middle and long –term plans for seaport operational activities ; and

e. technical, economical and environmental feasibility.

1. The planning period of seaport master plans shall include :

a. long-term, more than 15 (fifteen) years up to 25 (twenty five) years;

b. middle-term, more than 10 (ten) years up to 15 (fifteen) years;

c. short-term, 5 (five) years up to 10 (ten) years.

1. Operators of seaport shall be obliged to review short, middle and long –term seaport

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Part Three

Seaport working areas and seaport interest areas

Article 16

1. In the interests of operation of general seaport, limits of seaport working areas and seaport interest areas shall be stipulated on the basis of the seaport master plans already stipulated

2. Limits of seaport working areas and seaport interest areas shall be set forth by

geographical coordinate for guaranteeing seaport activities.

3. General seaport working areas shall consist of :

a. mainland working areas used for activities of principal and supporting activities ;

b. waters working areas used for activities of shipping lane , berthing waters, waters for inter-ship loading transfer, seaport pool for the need of berthing and turning basin, piloting, repairing and others.

1. General seaport working areas shall constitute waters seaport outside waters working

areas used for shipping lane from and to seaport, the need for emergency conditions, long –term seaport development, placement of dead ships, sailing test, piloting activities and ship building and ship building and maintenance facilities.

Article 17

1. operations of seaport shall propose the stipulation of seaport working areas and seaport interest areas as meant in Article 16 to the minister, governors, regents/mayors in accordance with their scopes of authority.

2. The minister, governors, regents/mayors shall examine the proposals as meant in paragraph (1) with regard to :

a. maps of the proposed plans for seaport working areas and seaport interest areas complete with coordinate points on topographic and sea maps;

b. study on aspects of navigation security and safety;

c. study on environmental aspect.

Article 18

1. The stipulation of seaport working areas and seaport interest areas shall be done as follows :

a. the minister stipulates hub international, international and national seaport working areas and seaport interest area after securing recommendations from governors and/or

regents/mayors;

b. governor stipulate regional seaport working areas and seaport interest areas after securing recommendation from regents/mayors;

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1. The stipulation of ferry-harbor working areas and ferry harbor interest areas shall be done as follow :

a. the minister stipulates inter-province and inter-state harbor working areas and ferry-harbor interest areas after securing recommendations from governors and/or

regents/mayors;

b. governors stipulate inter-regency/city ferry-harbor working areas and ferry harbors interest areas after securing recommendations from regents/Mayors;

c. regents/mayors stipulate inter-regency/city ferry-harbor working areas and ferry-harbor interest areas.

1. The general –seaport working areas and general –seaport working areas and general – seaport interest areas as meant in paragraphs (1) and (2) already stipulated shall become the basis for executing seaport activities.

Article 19

The operation of general seaports shall be given land and water title to undertake seaport activities in accordance with laws in force.

Article 20

1. In the general –seaport working areas as meant in Article 16 paragraph (3), operators of seaports shall have the following obligations :

a. In main land working areas of seaports :

1. Installing marks of limits according to limits of working areas already stipulated;

2. Installing billboard containing information on limits of mainland working areas of seaports;

3. Safeguarding assets which are owned;

4. Settling certificates of land title according laws in force.

a. In waters working areas of seaport :

1. In stalling marks of limits according to limits of waters working areas already stipulated;

2. Informing players of seaport activities about limits of waters working areas of seaports;

3. Making shipping navigation auxiliary facilities available;

4. Providing and maintaining seaport pool and shipping lane;

5. Maintaining the environmental conservation;

6. Safeguarding assets owned, such as seaports facilities on waters.

1. In the general- seaport interest areas as meant in Article 16 paragraph (4), the

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a. to make shipping navigation auxiliary facilities available;

b. to guarantee security and orderliness;

c. to provide and maintain shipping lane;

d. to maintain the environmental conservation; and

e. to supervise and control the use of coastal areas.

Article 21

1. Buildings of facilities only can be established on water edge in seaport working areas and seaport interest areas after securing a license from the minister.

2. Dredging and reclamation activities in seaport working areas and seaport interest areas only can be executed after securing license from the minister, governors and

regents/mayors in accordance to their respective scopes of authority.

3. The minister shall issued reclamation licenses in hub international, international and national seaport working areas and interest areas after securing recommendations from local regents/mayors about the conformance of the activity to lay-out plans of the regencies/cities.

4. The activities as meant in paragraph (1) and (2) shall observe :

a. navigation safety;

b. national seaport arrangement;

c. lay-out plans of regencies/cities

d. seaport master plans;

e. environmental conservation

1. Licenses to enact buildings of other facilities on the water edge as meant in paragraph (2) in seaport working areas shall be issued by regents /mayors in accordance with provisions in force after observing technical considerations of seaport operators .

2. Further provisions on the dredging and reclamation activities in seaport working areas and interest areas as meant in paragraph (2) shall be stipulated by a decree of the minister.

Article 22

Operators of seaport shall apply for a right to the mainland resulting from reclamation, dredging and land which floats to the surface in seaport working areas in according with laws in force.

CHAPTER IV

DEVELOPMENT AND OPERATION OF GENERAL SEAPORTS

Article 23

The development and operation of general seaports shall refer to :

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b. standards of design s for seaport building , lane, pool and equipment;

c. standards of reliability of seaport facilities and equipment;

d. standards of seaport operational service;

e. navigation safety; and

f. environmental conservation.

Article 24

The minister shall stipulate the seaport masterplans, standards of design for seaport buildings, lane , pool and equipment, standards of reliability of seaport facilities and equipment, standards of seaport operational service, navigation safety and the environmental conservation as meant in article 23.

Article 25

1. The development of general seaport shall be done after fulfilling the following

requirements :

a. administrative affairs;

b. evidence of control over land and waters;

c. having the stipulation of seaport locations;

d. having seaport master plans;

e. seaport technical designs including land construction, hydrooceanographic and

topographic conditions, placement and construction of navigation auxiliary facilities, shipping lane and seaport pool as ell as lay-out and capacity of equipment at seaports;

f. feasibility study at least containing :

1. technical feasibility which includes :

a. result s of seaports survey covering hydrooceanographic and geotechnical

conditions;

b. results of study on navigation safety covering the number, size and traffic

frequency of ships, plans for placement of shipping navigations auxiliary facilities, shipping lane, seaport pool as well as piloting waters;

1. economic and/or financial feasibility;

2. environmental feasibility/assessment.

a. technical considerations of the minister in charge of water resource management in the case of the development of river and lake ports.

1. In the case of the requirements as meant in paragraph (1) being fulfilled, a decision on the implementation of the development shall be stipulated.

2. The issuance of the decision on the implementation of the development as meant in

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a. the minister, in the case of hub international, international and national seaports ;

b. governors, in the case of regional seaports ;

c. regents/mayors, in the case of local seaports.

1. The issuance of the decision on the implementation of the development as meant in

paragraph (2) to ferry harbors shall be done by :

a. the minister, in the case of inter-province and interstate ferry harbors;

b. governors, in the case of inter-regency/city ferry harbors;

c. regents/mayors, in the case of intra-regency/city ferry harbors.

1. The development of seaports shall be done on the basis of technical guidelines on the development of seaports stipulated by a decree of the minister.

Article 26

The government, provincial governments and /or regency/city governments can build new general seaports by referring to the national seaport arrangement and complying with the provisions set forth in this government regulation.

Article 27

In undertaking the development of seaports, operators of general seaports shall be obliged :

a. to abide by legislation and provisions on seaport affairs, transport traffic on water, navigation safety and the environmental conservation.

b. to obey legislation issued by other government institutions;

c. to hold responsibility for impacts arising from the implementation for the development of the general seaports;

d. to execute development jobs of general seaports not later than one year as from the date of issuance of decision on the implementation of development;

e. to execute development work of general seaports in accordance with the seaport master plans already stipulated;

f. to report activities of development of general seaport periodically to the minister,

governors, regents/mayors in accordance with their respective scopes of authority.

Article 28

1. General seaport shall be operated after fulfilling the following requirements :

a. the development of seaports has been executed in accordance with requirements for the developments as meant in article 25;

b. navigation security, orderliness and safety;

c. the availability of facilities to ensure the smooth flow of passengers and goods;

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e. the availability of executors of seaports activities;

f. having service system and procedure ; and

g. the availability of human resources in the seaport operational technical field that have qualifications and certification stipulated by a decree of the minister.

1. In the case of the requirements as meant in paragraph (1) being fulfilled, a decision of the operation of seaports shall be stipulated.

2. The issuance of the decision on the operation of seaports as meant in paragraph (2) to general seaports shall be done by :

a. the minister, in the case of hub international, international and national seaports;

b. governors, in the case of regional seaports;

c. regents/mayors, in the case of local seaports.

1. The issuance of the decision on the implementation of the development as meant in

paragraph (2) to ferry harbors shall be done by :

a. the minister, in the case of inter-province and inter state ferry harbors;

b. governors, in the case of inter regency/city ferry harbors;

c. regents/ mayors, in the case of intra –regency/city ferry harbors.

1. Further provisions on the guidance for the operation of the seaports as meant in paragraph (2) shall be stipulated by a decree of the minister.

Article 29

1. The operational capacity of general seaport can be increased to 24 (twenty four) hours after observing the navigation safety, seaport , and sea-transport traffic facilities.

2. Based on the proposal of operators of seaports, the 24 hour operational service can be stipulated by :

a. the minister or the appointed officials, in the case of hub international , international and national seaports;

b. governors, in the case of regional seaports;

c. regent/mayors, in the case of local seaports.

1. Based on the proposal of operators of ferry harbors, the 24-haour operational service can be stipulated by :

a. the minister or the appointed officials , in the case of inter-province and inter state ferry harbors;

b. governors, in the case of inter regency/city ferry harbors;

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1. Guidelines on the operation of seaports for 24 hours as meant in paragraph (1) shall be stipulated by a decree of the minister.

Article 30

1. requirements for the stipulation of seaport operation for 24 hours shall include :

a. lane conditions covering the depth, low tide shipping navigation auxiliary facilities;

b. readiness of piloting service;

c. readiness of seaport facilities

d. readiness of warehouse outside seaport;

e. security and orderliness;

f. readiness of operational human resources and loading and unloading personnel;

g. recommendations of officials executing the function of navigation safety.

1. The requirements as meant paragraph (1) letters b,d and f shall not apply to ferry harbors.

Article 31

1. Seaports can have their operational capacities increased from seaport facilities serving public goods to seaport facilities serving the transport of containers and liquid and dry bulk after fulfilling requirements.

2. The increase in capacities of seaport facilities from facilities serving conventional goods to become seaport facilities serving the transport of containers and liquid and dry bulk shall be stipulated by the minister on the basis of proposals of seaports operators.

3. The requirements as meant in paragraph (1) shall be as follow :

a. in the case of facilities aiming at serving the transport of containers :

1. having service system and procedure;

2. having human resources at the adequate quantity and quality;

3. readiness of permanent anchoring facilities of first-generation ships;

4. the availability of installed and mobile equipment for loading and unloading

containers;

5. collection square and special warehouse of containers;

6. reliability of operational system to use on-line information networks internally and externally;

a. in the case of facilities aiming at serving the transport of liquid and dry bulk :

1. readiness of permanent anchoring facilities in accordance with kinds of ships;

2. the availability of equipment for loading and unloading bulk;

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and externally;

4. having service system and procedure;

5. having human recourses at the adequate quantity and quality.

1. Further provisions on the requirements and process of the increase in operational

capacities of seaport facilities as meant in paragraph (2) and (3) shall be stipulated by a decree of the minister.

Article 32

Operators of general seaports already securing licenses to operate shall be obliged :

a. to abide by legislation and provisions on service and the environmental conservation;

b. to obey legislation issued by other government institutions ;

c. to hold responsibility for the operation of the relevant general seaports ; and

d. to report operational activities to the minister, governors, regents/mayors in accordance with their respective scopes of authority every month.

CHAPTER V

THE IMPLEMENTATION OF ACTIVITIES AT

GENERAL SEAPORTS

Article 33

1. Executors of activities at general seaports shall consist of government institution, seaport operators and Indonesia statutory bodies providing services at seaports to ensure the smooth traffic of ships, passengers and goods.

2. The government institution as meant in paragraph (1) shall be holder of function of :

a. navigation safety;

b. customs and excise;

c. immigration;

d. quarantine;

e. security and orderliness

1. The seaport operators as meant in paragraph (1) shall constitute :

a. seaport technical executing /working units at general seaport seaports operated by the government, provincial government, regency/city governments;

b. executing units of seaport management companies at general seaports operated by seaport management companies.

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statutory bodies undertaking activities at seaports.

Article 34

1. Government institutions at seaports shall consist of :

a. the executor of the function of navigation safety, having the tasks of :

1. overseeing the traffic of ships coming in and out of seaports;

2. overseeing the fulfillment of requirements for seaworthiness of ships;

3. overseeing the pilotage and towing of ships as well the provisions and

maintenance of shipping lane;

4. preventing and overcoming the pollution of seaport waters;

5. taking safeguarding and disciplining measures in seaport working areas and

seaport interest areas to ensure the smooth operation of seaports;

6. overseeing the development/expansion and operation of seaports.

a. the executor of the customs and excise function having the task of supervising and

safeguarding the implementation of custom legislation and other laws delegated to the relevant executor.

b. The executor of the immigration function, having the task of overseeing the traffic of people from and/or to other countries in connection with immigration affairs;

c. The executor of the quarantine function, having the task of overseeing people , plans animal and fish in connection with the quarantine affairs

1. The function of public security and orderliness at seaport shall be executed in accordance with laws in force.

Article 35

1. The government shall continue to execute the function of safety as meant in Article 34 paragraph (1) letter a at seaport whose operation is entrusted to provincial governments and regency/city governments.

2. The government shall execute the function of safety as meant in Article 34 paragraph (1) letter a new seaport built by the government, provincial governments and/or regency/city governments.

Article 36

1. The implementation of public administration activities and provision of seaport services shall be coordinated by officials holding the function of coordination that are appointed by the minister, governors and regent/mayors in accordance with their respective scopes of authority.

2. The official holding the coordination function as meant in paragraph (1) shall have the following tasks and authority :

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b. to settle problems capable of disturbing the smooth execution of operational activities of seaport which cannot be settled by government institutions, seaport management companies and other working units concerned.

1. Further provisions on the coordination of implementation of activities at seaports as meant in paragraphs (1) and (2) shall be regulated by a decree of the minister.

CHAPTER VI

PROVISION OF SEAPORT SERVICES AT

GENERAL SEAPORTS

Article 37

The provision of seaport services at general seaports shall be done by :

a. seaport technical executing /working units at general seaports operated by the

government, provincial governments and regency/city governments;

b. executing units of seaport management companies at general seaports operated by seaport management companies.

Article 38

1. The seaport services as meant in Article 37 shall include :

a. provisions of seaport and waters pool for the traffic of ships and berthing place;

b. provision of service connected with pilotage and towing of ships;

c. provision of and rendering of services for warehouse and collection square of goods,

transport on seaport waters, loading/unloading equipment as well as seaport equipment;

d. provision of land for various buildings and fields in connection with interests in ensuring the smooth operation of sea transport and industry;

e. provision of road and bridge networks waiting place of motor vehicles , water disposal channel ,electricity installation, drinking water installations, fuel oil depots and fire extinguisher;

f. provision of services for terminal of container, liquid bulk, dry bulk and roll on roll over;

g. provision of other services able to support the provision of seaport services.

1. The provision of the seaport services as meant in paragraph (1) shall constitute the

seaport core business which is designated for :

a. the smooth of intra-and/or inter-transport mode transfer;

b. the center of service activities; and

c. the center of distribution and consolidation of goods.

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2. Further provisions on the guidelines on the provision and rendering of the pier-based services as meant in paragraph (3) shall be stipulated by a decree of the minister.

Article 39

1. Provision of seaport services at general seaport by seaport technical executing/working units can be delegated to seaport management companies.

2. The delegation of the provisions of seaport services as meant in paragraph (1) shall be done after fulfilling the following criteria :

a. financial aspect;

b. operational aspect;

c. facility aspect.

1. Further provision on the delegation of seaport services as meant in paragraph (2) shall be regulated by a decree of the minister.

Article 40

1. Provision of seaport services at fishery seaport as fishery infrastructure shall be regulated and stipulated by the minister responsible for fishery affairs.

2. The provisions in this government regulation shall apply to provision of the seaport

services as meant paragraph (1) in the navigation safety aspect.

CHAPTER VII

SEAPORT SUPPORTING BUSINESS ACTIVITIES

Article 41

1. In the framework of ensuring the smooth provision of seaport services at general seaport, seaport supporting business activities can be executed.

2. The seaport supporting business activities as meant paragraph (1) shall consists of :

a. activities excluding from seaport principal business, which can cover :

1. provision of office building in interest of users of seaport services;

2. provision of industrial estate;

3. provision of trading complex.

a. activities supporting the smooth operation of seaport capable certain conditions unless they are available, which can include :

1. provision of waste collection facilities;

2. provision of container depot;

3. provision of warehouse services.

a. activities supporting the smooth operation of seaport and not affecting the smooth

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1. public transport from and to seaport;

2. hotel, restaurant, tourism, post and telecommunications facilities;

3. provision of other public amenities.

1. Further provisions on the seaport supporting business activities as meant in paragraph (1) and (2) shall be stipulated by a decree of the minister.

Article 42

Seaport supporting business activities can be executed by :

a. seaport technical executing/working units of the government , provincial government,

regency/city governments or seaport management companies;

b. Indonesia statutory bodies or individuals after being considered by seaport technical executing units of the government, provincial governments, regency/city governments or seaport management companies.

Article 43

Operators of the seaport supporting business activities as meant in Article 42 shall be obliged :

a. to maintain orderliness and sanitation of seaport areas which are used;

b. to avoid the occurrence of security disturbances and other matters capable of disturbing the smooth execution of seaport operational activities conservation.

CHAPTER VIII

MAINLAND SEAPORT

Article 44

1. Mainland seaport shall constitute a certain place in the mainland which functions as

general seaport.

2. The minister shall stipulate locations of mainland seaports.

3. The minister, governors, regents/mayors shall stipulate the development and operation of mainland seaports in accordance with authority in their main seaports.

4. The mainland seaport as meant in paragraph (2) shall be stipulated by observing the

following matters :

a. the availability of lane linking to seaports pen for international trade;

b. being located in regions potential in the production and trading sectors which have been developed; and

c. lay-out plans of the relevant regions.

1. The development and operation of the mainland seaports as meant in paragraph (3) shall fulfill the following requirements :

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b. controlling a certain size of land plots as a working area; and

c. having infrastructures and technology so as to be capable of functioning as mainland

seaports.

1. Provisions effective for general seaports with regard to procedures for operation and general provisions on export and import shall be enforced to mainland seaports.

Article 45

Provision of the services as meant in Article 38 paragraph (1) at mainland seaport shall be done :

a. mainland seaport technical executing units of the government, provincial government,

regency/ city government; or

b. executing units of seaport management companies.

CHAPTER IX

JOINT COOPERATION

Article 46

1. In the provision of seaport services, seaport management companies can involve

provincial governments, regency/city government and other Indonesia statutory bodies through joint cooperation.

2. The joint cooperation between seaport management companies and provincial

government, regency/city governments as meant in paragraph (1) shall be executed comprehensively and nationally.

3. In executing joint cooperation with seaport management companies , the provincial

governments and regency/city governments shall establish regional administration-owned companies especially set up to provide seaport services.

4. In executing the joint cooperation as meant in paragraph (2), seaport management

companies shall observe public interest and the mutually beneficial principle .

5. The mechanism of the joint cooperation as meant in paragraph (2) shall be further

regulated by a decree of the minister.

Article 47

1. The joint cooperation in the operation of the general seaports as meant in article 46 can be executed in :

a. the building of seaport and waters pool for the traffic of ships and berthing place;

b. provision and rendering of pier-based services for anchoring, loading/unloading goods and animals as well as provision of boarding/disembarking facilities for passengers;

c. provision of services connected with the provision of towing services for ships;

d. provision of and rendering of services for warehouse and collection square of goods,

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e. provision of various building and fields on land in seaport working areas in interest in ensuring the smooth provision of seaport services;

f. provision of road and bridge networks, waiting place of motor vehicles, electricity

installation, drinking water installation , fuel oil depots and waste collection facilities at seaport;

g. provision of services for terminal of container, licit bulk, dry bulk and roll on roll over;

h. provision of other services able to support the provision of seaport services.

1. The joint cooperation as meant in paragraph (1) can be executed for a kind of service or more in accordance with the provisions of law in force.

CHAPTER X

TARIFFS OF SEAPORT SERVICES

Article 48

Tariffs of seaport services shall be stipulated on the basis of kinds, structures and categories of tariff by observing :

a. interest of public service;

b. enhancement of quality of seaport services provided;

c. interests of users of services;

d. better encouragement of provision of services;

e. return of investment;

f. business development.

Article 49

1. Kinds of tariffs of seaports services shall consists of :

a. Services for ships;

b. Services for goods;

c. Services for passengers;

d. Services for equipment;

e. Other seaport services

1. Structures of tariffs of seaport services shall constitute the tariffs multiplied by periods and measurement units of every kind of seaport services or group of several seaport services in a package of levies.

2. Categories of tariffs of seaports services shall constitute classifications of tariffs set forth on the basis of kinds of seaport services, classification and facilities available at seaports.

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Article 50

1. Tariffs of seaport services at general seaports operated by shall be stipulated by a

government regulation in the case of the seaports being operated by the government and regional regulation in the case of the seaports are operated by provincial governments and regency/city governments.

2. Tariffs of seaport services at general seaport operated by seaport management companies shall be set forth by the seaport management companies after consulting with the minister.

CHAPTER XI

SPECIAL SEAPORT

Article 51

1. Location of special seaport shall be an internal unit of the national seaport arrangement.

2. Locations of special seaport shall be stipulated by the minister after securing

recommendations from governors and regents /mayors.

3. Special seaports can be managed by the government, provincial governments,

regency/city governments or Indonesia statutory bodies for self interests in supporting certain activities.

4. The management of special seaport as meant in paragraph (1) can done in the case of :

a. the existing general seaports being unable to provide seaport services for certain activities because of the limited capacity of the available facilities;

b. on the basis of economic and technical operational considerations, navigation safety

being more effective and efficient and being better guaranteed if special seaports are built and operated.

Article 52

1. The special seaport as meant in Article 51 paragraph (1) shall be located outside the seaport working and interest areas being an integral unit of the national seaport arrangement.

2. Special seaport areas shall cover mainland and waters, or waters.

3. The utilization of mainland areas at special seaport shall be done by special seaport operators in accordance with laws in force.

4. The utilization of waters areas in interests of special seaport management shall be done by observing :

a. shipping lane and ship routes;

b. turning basin;

c. emergency need;

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e. the environmental conservation ; and

f. defense and securing aspects.

1. Operators of special seaports shall be obliged to provide and maintain shipping

navigation auxiliary facilities, shipping lane, seaport pool and facilities needed for ensuring the smooth traffic of ships and goods as well as the smooth execution of public administration tasks at special seaports.

2. Further provisions on the utilization of waters areas for special seaports and the

obligations of operators of special seaports as meant in paragraphs 94) and (5) shall be regulated by a decree of the minister.

Article 53

1. Dredging and reclamation activities on waters areas of special seaports shall be done after securing licenses from the minister, governors, regents/mayors in accordance with their respective scopes of authority.

2. Operators of special seaports can apply for right to mainland resulting from reclamation in special seaport waters in accordance with laws in force.

Article 54

1. The building of special seaport shall be based on licenses issued by :

a. the minister, in the case of national/international special seaports;

b. governors, in the case of regional special seaports;

c. regents/mayors, in the case of local special seaports.

1. Special seaports shall be built after fulfilling the following requirements :

a. Administrative affairs, including :

1. deed of establishment of company;

2. taxpayer code number (NPWP);

3. core business license from the institution concerned;

4. deed/certificate of control over land;

5. proposal of action plan;

6. having stipulation of location of special seaport;

7. recommendation from the official executing the navigation safety function.

a. technical affairs, consisting of :

1. seaports master plan;

2. lay out of pier;

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4. hydrographic and topographic pictures , summary of reports on survey of law tide and stream;

5. result of survey of soil condition;

6. results of study on navigation safety including shipping lane and seaport pool;

7. limits of mainland and waters areas, accompanied by points of geographical

coordinate;

8. environmental feasibility/assessment.

1. The approval of rejection of the building of special seaport as meant in paragraph (2) shall be granted not later than 14 (fourteen) working days as from the date of receipt of the complete applications.

2. The rejection of applications for the stipulation of the development of special seaports as meant in paragraph (3) shall be conveyed in writing along with reasons for the rejection.

Article 55

The building and operation of special seaport shall refer to :

a. seaport master plans;

b. standards of designs for seaport buildings, lane , pool and equipment;

c. standards of reliability of seaport facilities and equipment;

d. standards of seaport operational service;

e. navigation safety; and

f. environmental conservation.

Article 56

The minister shall stipulates the seaport master plans, standards of designs for seaport buildings , lane pool equipment, standards of reliability of seaports facilities and equipment, standards of seaport operational services, navigation safety and the environmental conservation as meant in article 55.

Article 57

In realizing the building of special seaport, the following matters shall be observed :

a. to abide by legislation and provision on seaport affairs , transport traffic on water, navigation safety and the environmental conservation.

b. To obey legislation issued by other government institutions with regard to their core business ;

c. To hold responsibility for impacts arising from the implementation of development of

special seaports;

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e. To execute development work of special seaports in accordance with the schedule stipulated;

f. To report activities of development of special seaports periodically to the minister, governors, regents/mayors in accordance with their respective scopes of authority.

Article 58

1. The operation of special seaports shall be based on licenses issued by :

a. the minister, in the case of national/ international seaports;

b. governors, in the case of regional special seaports;

c. regents/mayors, in the case of local special seaports

1. The operational licenses as meant in paragraph (1) shall be effective as long as operators of special seaports still undertake their core business.

2. Special seaports shall be operated after fulfilling the following requirements :

a. the development of special seaports has been executed accordance with requirements for the development as meant in article 54 paragraph (2);

b. navigation security, orderliness and safety;

c. environmental management;

d. having service system and procedure; and

e. the availability of human resources in the seaport operational technical field that have qualification and certification stipulated by a decree of the minister.

Article 59

Operators of special seaports already securing licenses to operate shall be obliged :

a. to abide by legislation and provisions on navigation and the environmental conservation ;

b. to obey legislation issued by other government institutions connected with their core business;

c. to hold full responsibility for the operation of the relevant special seaports; and

d. to report operational activities to licensers every month

Article 60

1. special seaports shall be prohibited from being used for public interest, except in certain conditions licensed by the minister, governors, regents/mayors in accordance with their scopes of authority as meant in article 54 paragraph (1) and article 58 paragraph (1).

2. The certain conditions as meant in paragraph (1) can be as in the form of :

a. the inability of general seaports to serve demand for seaport services because of the limited capacity of the available facilities;

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general seaports ; or

c. the unavailability of general seaports and adequate transport mode in the relevant regions.

1. The licenses to used special seaports as meant in paragraph (1) only can be permitted if the facilities available in the seaports are able to guarantee navigations safety and seaport services are provided through cooperation with the nearest general seaport.

2. The use of special seaports for public interests shall only be provisional and in the case of general seaport being already capable of functioning to serve public interest, the licenses to use special seaports for public interests are revoked.

Article 61

1. In the case of special seaports being used for activities other than the certain activities as meant in Article 60 paragraph (2) or being used for the public interest as meant in Article 60 paragraph (4), provisions on tariffs of services at general seaports shall be enforced in accordance with laws in force.

2. The tariffs of seaport services as meant in paragraph (1) shall be collected by the operator of the nearest general seaport in cooperation with operators of general seaports.

3. Further provisions on the collection of tariffs of seaport services and its procedure shall be stipulated by a decree of the minister.

Article 62

1. licenses to operate special seaport can be transferred to other parties along with their core business.

2. The transfer of licenses to operate special seaports as meant in paragraph (1) shall be reported to the minister, governors, regents/mayors in accordance with their respective scopes of authority as meant in Article 54 paragraph (1) and article 58 paragraph (1).

3. In the case of operators of special seaports no longer undertaking the core business, the operators of special seaports shall be obliged to report to the minister, governors, regents/mayors not later than 3 (three) month as from the date of discontinuation of the core business.

Article 63

1. Licenses to building special seaport shall be revoked in the case of the licensees :

a. not executed the building work in one year after the date of issuance of licenses to build the special seaports;

b. failing to continue the building work of the special seaports;

c. violating the obligation as meant in article 57;

1. Licenses to operate special seaports shall be revoked in the case of the licensees :

a. violating the obligations as meant in article 59, article 62 paragraphs (2) and (3);

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1. The revocation of the licenses to build and operate special seaports as meant in paragraphs (1) and (2) shall be proceeded by the issuance of a written warning three times consecutively at a time interval of one month.

2. In the case of the warning as meant in paragraph (3) being already issued but licensees of special seaports make no improvement in accordance with the issued warning, licenses to build and operate special seaports shall be revoked.

Article 64

Licenses to build and operate special seaports shall be revoked without the warning process, if operators of the relevant special seaports :

a. undertake activities endangering the state security; or

b. obtain licenses to build special seaports through illegitimate means.

Article 65

1. The operational capacity of special seaports can be increased to 24 (twenty four) hours by observing the availability degree of navigation safety , seaport and sea traffic facilities.

2. Based on proposals of operators of special seaports, the operational service for 24 (twenty four) hours can be stipulated by :

a. the minister or the appointed officials, in the case of national /international special seaports;

b. the governor, in the case of regional special seaports;

c. the regent/mayor, in the case of local special seaports.

1. Guidelines on the operation of seaports for 24 (twenty four) hours shall be regulated by a decree of the minister.

Article 66

Requirements for stipulating the operation as seaports for 24 (twenty four) hours shall include :

a. lane conditions covering the depth, low ebb and auxiliary shipping navigation facilities;

b. readiness of piloting service;

c. readiness of seaport facilities;

d. readiness of warehouse outside seaports;

e. security and orderliness;

f. readiness of operational human resources and loading /unloading personnel;

g. readiness of land transport facilities;

h. recommendations from officials execution the navigation safety function.

CHAPTER XII

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Article 67

1. General and special seaports can be stipulated as seaports open for international trade.

2. Activities at seaports open for international trade shall include traffic activities of ships, passengers, goods and/or animals

3. The seaports open for international trade as meant in paragraphs (1) and (2) can be called on by Indonesian and/or foreign flag ships sailing from and/or to other countries.

Article 68

1. Seaports open for international trade shall be stipulated by considering :

a. the national seaport arrangement;

b. regional economic growth and developments driving up mobility of people, good and

vehicles from and to other countries;

c. interest in the development of capacity of national see transport, namely the increase in joint cooperation between national shipping companies and foreign shipping companies in the frame work of fulfilling demand for sea transport from and to other countries.

d. National economic development already increasing the participation of private sector and communities in the national development so as so to demand the development of sea transport service which has a broader sphere of service with better quality ;

e. Other national interest boosting other development sectors.

1. Requirements for stipulating seaports open for international trade shall be as follows:

a. administrative aspects covering :

1. recommendations from governors, regents/mayors;

2. recommendations from officials executing the navigation safety function at the seaport;

a. economic aspect consisting of :

1. supporting certain industries;

2. flow of general goods totaling 10,000 tons per annum at the minimum;

3. flow of exported goods totaling 50,000 tons per annum at the minimum;

a. navigation safety aspect including :

1. the depth of waters in the front of quay is 6 M LWS at the minimum;

2. the size of pool is sufficient for turning basin of three ships at the minimum;

3. auxiliary shipping navigation facilities;

4. coast operation radio station;

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6. patrol boat.

a. seaport facility technical aspects consisting of :

1. permanent concrete quay with one berthing place at the minimum;

2. closed warehouse;

3. loading /unloading equipment;

4. one unit of fire extinguisher;

5. bunker facility;

6. pollution prevention facilities.

a. office facilities and supporting equipment of customs and excise, immigration and

quarantine institutions.

1. In the case of the requirements as meant in paragraph (1) being already fulfilled , the minister can stipulate seaports open for international trade after securing considerations of the minister in charge of industrial and trading affairs as well as the minister responsible for financial affairs.

CHAPTER XIII

WASTE COLLECTION FACILITIES AT SEAPORTS

Article 69

1. General and special seaport shall be equipped by facilities collecting waste or other materials from ships that cause pollution.

2. Further provisions on the waste or other material collection facilities as meant in

paragraph (1) shall be stipulated by a decree of the minister.

Article 70

1. The waste or other material collection facilities as meant in Article 69 paragraph (1) shall be stipulated by operators of general or special seaports.

2. Indonesia statutory bodies and/or Indonesia citizens can collect waste or other materials from ships on the basis of the approval of operators of general or special seaports.

3. Further provisions on procedures for the operation of waste or other material collection facilities at the seaports as meant in paragraph (1) shall be stipulated by a decree of the minister.

CHAPTER XIV

COMPENSATION

Article 71

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2. The compensations as meant in paragraph (1) shall include cost of repair of the relevant seaport buildings and/or facilities.

3. Owner and/or operators of ships causing the damage and/or dysfunction of buildings

and/or facilities of general seaports shall leave a guarantee for compensation before their ships sail.

Article 72

The amount of the compensation as meant in article 71 paragraph (3) shall be determined on the basis of degree of damage resulting from.

Article 73

1. The guarantee for the compensation as meant in article 71 paragraph (3) shall be given up to the secretary of the public court overseeing the domicile of the relevant seaport.

2. The secretary of the public court as meant in paragraph (1) shall give up evidence of depositing of a guarantee for compensation to grantors of the guarantee with a copy made available to operators of general seaports.

3. In the case of grantors of guarantee already fulfilling the whole obligations connected with their responsibility as meant in article 71 paragraph (3) , the guarantee for compensation can be taken back.

Article 74

1. Operators of general seaports shall be responsible for losses of service users or other third parties arising from mistake in the operation of seaports.

2. The amount of the compensation as meant in paragraph (1) shall be determined on the

basis of real losses that they suffer.

CHAPTER XV

MISCELLANY

Article 75

General seaports already operated by seaport management companies shall continue to be operated seaport management companies.

Article 76

1. The operation of regional seaport operated by the government (seaport technical

executing units/ working units) shall be delegated to provincial governments as a deconcentration task.

2. The operations of local seaports operated by the government (seaport technical executing units/working units ) shall be delegated to regency/city governments as a decentralization task.

Article 77

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regency/city government as meant in article76 paragraph (2) shall remain unchanged unless the hierarchy of their roles and function changes.

CHAPTER XVI

TRANSITIONAL PROVISION

Article 78

1. The government can start delegating or entrusting the operation of seaports (technical executing units/working units) to provincial governments or regency/city governments in accordance with the hierarchy of seaport function in 2002, as long as the budged and statement of readiness of provincial governments or regency/city governments for the operation of the seaports have been made.

2. With the enforcement of this government regulation, all seaports already existent and operating shall remain able to operate with the provision that not later than one year as from the date of promulgation of this government regulation, they must be adjusted to the provisions stipulated in this government regulation.

3. In the case of the stipulation of general seaport working and interest areas resulting in the need for the adjustment of status of special seaport or quay facilities which are built and operated by the third party, the status shall be adjusted not later than one year as from the date of stipulation of working and interest areas of the relevant general seaports.

CHAPTER XVII

CONCLUSION

Article 79

With the enforcement of this government regulation, all seaport legislation lower than this government regulation shall be declared to remain effective as long as they do not contravene this government regulation.

Article 80

With the enforcement of this government of this government regulation, government Regulation No 70/1996 on seaport affairs (Statute Book of 1996 No 107, Supplement to Statute Book No 3661 ) shall be declared null and void.

Article 81

This government regulation shall into force as from the date of promulgation.

For public cognizance, this government regulation shall be promulgated by placing in Statute Book of the Republic of Indonesia.

Stipulated in Jakarta

On October 17, 2001

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sgd

MEGAWATI SOEKARNOPUTRI

Promulgated in Jakarta

On October 17, 2001

THE SECRETARY OF THE STATE OF THE REPUBLIC OF INDONESIA

sgd

BAMBANG KESOWO

STATUTE BOOK OF THE REPUBLIC OF 2001 NUMBER 127

ELUCIDATION ON

GOVERNMENT REGULATION NO 69/2001 CENCERNING

SEAPORT AFFAIRS

GENERAL

The seaport as meant element in the provision of service plays a very important and strategic role so that the state controls its operation and the government fosters it in the framework of supporting, propelling and encouraging the accomplishment of national objectives, stipulating the archipelago state concept and fortifying the national resiliency.

The fostering of seaport carried out by the government includes regulatory, controlling and supervisory aspects. The regulatory aspect covers the formulation and stipulation of general and technically operational policies. The controlling aspect includes the provision of directives and counseling in the building and operation of seaports, while the supervisory aspect is applied to seaport operation.

Seaport affairs are fostered in an integral part of the national seaport arrangement destined for realizing the smooth, orderly, secure and safe navigation in the provision of seaport services, guaranteeing legal and business certainty, encouraging the professionalism or economic players at seaport, accommodating transport technology as well as enhancing the quality of service and competitiveness by continuously prioritizing to public interest service.

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