On October 20, 2015, the Minister of Transportation (“MOT”) issued Regulation No. PM 146 Year 2015 on Organizing and Managing Freight Forwarding Services Businesses (“PM 146/2015”). PM 146/2015 amended several provisions in Regulation No. PM 74 Year 2015 (“PM 74/2015”) which has been amended by Regulation No. PM 78 Year 2015 (“PM 78/2015”). This new PM 146/2015 is aimed to give a legal certainty and control the freight forwarding services business in Indonesia and takes effect from 20 October 2015.
PM 146/2015 divides the type of the company which may conduct the freight forwarding services in Indonesia and the authority to issue a freight forwarding license, as follows:
- A Domestic Investment Company (“PMDN”) shall apply for the license to the local Governor where the PMDN company is located; and
- A Joint Venture and Foreign Investment Company1 (“PMA”) shall apply for the license to Indonesia Investment Coordinating Board (“BKPM”).
Further, the limitations in the previous regulations which limit the operational area of a PMA company at Kuala Namu Airport (North Sumatera Province), Soekarno Hatta Airport (Jakarta Province), Juanda Airport (East Java Province), Hasanuddin Airport (South Sulawesi Province), I Gusti Ngurah Rai Airport (Bali Province), Belawan Seaport (North Sumatera Province), Tanjung Priok Seaport (Jakarta Province), Tanjung Perak Seaport (East Java Province) and Makassar Seaport (South Sulawesi Province) still remain in PM 146/2015.
In this Client Update, we outline several key changes on freight forwarding service business as regulated under PM 146/2015, as follows:
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This Client Update is intended to give an overview only on the key changes in PM 146/2015 compared to the previous regulations. There could be other changes that need to be considered on a case-by-case basis.