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Summary of Procedure on Construction and Operation of Special Terminal (Tersus) and Private-Use Terminal Permit (TUKS)

The law related to this matter is Law No. 17 Year 2008 concerning Shipping and its implementing regulations, among others Government Regulation No. 61 Year 2009 concerning Ports and Minister of Transportation Regulation No. PM 51 Year 2011 concerning Special Terminal and Private-Use Terminal.

PROCEDURE AND REQUIREMENTS OF SPECIAL TERMINAL PERMIT ISSUANCE

The procedure of Special Terminal (“Tersus“) application consists of 3 (three) stages, namely Tersus Location Permit, Tersus Construction Permit and Tersus Operation Permit.

Tersus Location Permit

Prior the construction of Tersus is commenced, the Tersus operation company shall obtain stipulation from Minister of Transportation regarding the location of Tersus construction. This stage will involve: technical survey on the safety of shipping; the plan of raw materials’ loading/discharged volume; the plan of vessel berthing/docking frequency; economic aspect which covers the efficiency of Tersus construction; and environmental safety aspect. The applicant shall also provide the result of the survey covering hydro-oceanography and topography aspects. Moreover, the applicant shall obtain recommendation from Harbor Master and Head of Region (governor/regent/mayor).

Tersus Construction Permit

Tersus Construction Permit issued by Director General of Sea Transportation (“DGST”) on behalf of Minister of Transportation. The application of Tersus Construction Permit shall be submitted to DGST by attaching 4 (four) types of requirements, namely: (i) administrative requirement; (ii) port technical; (iii) navigational safety and security; and (iv) environmental sustainability. The precondition of this stage shall involve the preparation of short-term, mid-term and long-term construction activity plan. On this stage, the applicant also obliges to provide the evidence of its financial capacity, the evidence of land possession and the recommendation of Tersus construction from Harbor Master.

Tersus Operation Permit

The Tersus operation can only be conducted after the operation permit is issued by Minister of Transportation. Operation permit shall be issued if the constructed Tersus is in accordance with the specifications which is stated in Tersus Construction Permit and has fulfilled the shipping security standard, shipping order and shipping safety stipulated by the Ministry of Transportation. The applicant shall also has the implementation report of environmental impact assessment (AMDAL), stipulates the system and procedure of Tersus service which is in accordance with Ministry of Transportation’s standard, and occupies human resources in the technical field of port operation who possess the certificate of qualification and competency.

PROCEDURE AND REQUIREMENTS OF PRIVATE-USE TERMINAL PERMIT ISSUANCE

Compared to Tersus, the procedure and requirements of Private-Use Terminal (“TUKS“) permit is simpler. TUKS permit issuance is only through one stage which comprises of 2 (two) permits, namely: (i) TUKS Construction Permit; and (ii) TUKS Operation Permit. Prior submitting the permit application, the TUKS operator shall executes a form of cooperation with local port authority (proved with a Cooperation Agreement).

The TUKS Permit (TUKS Management Approval) may be issued by Minister of Transportation (through DGST), Governor or Regent/Mayor depends on the location of the TUKS.

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This article contains general information on legal topic. The statements and opinions expressed by the author are those of the author.