Ben Line Agencies Indonesia Advisory: Sailing Delay for Coal Vessels
Recently we have received the request for clarification from our Principals relating to the below statement:
This is to inform you that due to some sudden changes in Indonesian Government Policies, export procedures has been changed with immediate effect. Exports being previously cleared on trade license now has to be processed under Miners Licenses along with export duties. Even the same is immediately functional for the shipments already loaded and therefore, no ship can sail or load further unless export duties and mine license documentation been done and therefore, all cargo already loaded has to be unloaded back to jetty.
All these has severely impacted the business in Indonesia, almost 20 ‐ 25 shipments are now held at East Kalimantan and 10 ‐15 at South Kalimantan. We regret to inform you this but as implies, many shipments are stuck in these changed policies with uncertain consequent hereafter. (As per letter from Ministry of Finance Republic Indonesian narrating same.
Be advised that from our local checking we have determined that there is no new regulation as highlighted above, but instead there has been a crackdown on longstanding law implemented by the Ministry of Trade in 2014.
All shippers export cargoes are required to pay government tax (Pph22) for completion of the export procedure:
- Purchase tax locally of 1,5% before SKAB issued
- Royalty tax of 5%
- Customs tax of 1,5% before PEB issued
If the above items are not paid in full the holder of the ET under which the cargo has been declared will not be able gain PEB (Export Permit) to enable Agents to process the clearance documents to receive sailing permit.
We understand that some shippers/suppliers who have IUP/OP permit have faced issues with vessels being delayed due to non‐payment in full of local tax (1.5%) prior to SKAB is issued.
Recently Jakarta Head Customs Office have begun to crackdown on these practices by blocking system to stop PEB issuance until all taxes / royalties are paid in full for all previous shipments.
The Coal Export regulation remains the same as per Trade Ministry 2014.
- Coal Shipper / Supplier should hold ET (Listed Exporter)
- Payment duty tax & royalty required in full after completion of loading
- Sending Coal Export report on monthly basis
If all the above requirements are complete, then there will there is no issue to receive PEB (export permit). PEB is required by agent to arrange Sailing Permit at Harbour Master. The vessel cannot sail without holding Sailing Permit.