Ship Registration and Mortgages in Indonesia: Eligibility, Documents, and the Mortgage Register

Originally published in Lexology Panoramic: Shipping 2027.

By Setyawati Fitrianggraeni, S.H., LL.M., FCIArb., FAIADR, Reynalda Basya Ilyas, and Tiyana Sigi Pertiwi, S.H., LL.M.

In brief

Vessel registration in Indonesia, including registration of ownership, mortgages, and other property rights, is governed by Minister of Transportation Regulation No. 39/2017. Only vessels that meet the tonnage and ownership requirements may be registered under the Indonesian flag, and dual registration is prohibited. This part explains which vessels are eligible, who may apply, which documents are required, and how a ship mortgage is recorded. The law is stated as at 22 May 2026.

Which vessels are eligible for registration

Registration of vessels is governed by Minister of Transportation Regulation (MoTR) No. 39/2017. The vessels eligible to be registered are seagoing vessels, fishing boats, and ferries that sail on crossings, rivers, and lakes.

Under article 5(2) of MoTR No. 39/2017, the requirements to register ownership of a vessel under the Indonesian flag are as follows: the vessel must be at least 7 gross tonnage (GT); the vessel must be owned by Indonesian nationals or by a legal entity established under Indonesian law and domiciled in Indonesia; or the vessel must belong to an Indonesian joint venture legal entity whose majority shares are owned by Indonesian nationals.

Vessels may also be registered under the Indonesian flag in the artisanal shipping (pelayaran rakyat) category, as provided under article 45 of the Shipping Law. Artisanal shipping activities are carried out by Indonesian individual nationals or business entities, using Indonesian-flagged vessels that meet seaworthiness requirements and are crewed by Indonesian nationals. Under Presidential Regulation No. 74 of 2021, the vessel types for the artisanal shipping category are:

Vessel type	Key characteristics
Traditional sailing vessel (Kapal Layar, KL)	Propelled solely by wind power
Motor sailing vessel (Kapal Layar Motor, KLM)	Maximum 500 GT, with engine power and sail area in accordance with the applicable provisions
Modest motor vessel (Kapal Motor, KM)	Minimum 7 GT and maximum 174 GT

Who may apply

Under MoTR No. 39/2017, the following may apply to register a ship in Indonesia: Indonesian nationals; a legal entity established under Indonesian law and domiciled in Indonesia; or a legal entity in a joint venture, the majority of whose shares are owned by Indonesian nationals.

A letter from the Ministry of Transportation dated 4 August 2017 on MoTR No. 39/2017 adds that a vessel registered by a joint venture company should be a ship owned by an Indonesian private legal entity with majority shareholders being Indonesian nationals, or a ship owned by an Indonesian public legal entity with foreign shareholders not exceeding 49 per cent. In addition, under article 29(2) of Law No. 66 of 2024, a joint venture company in the sea transportation sector must own and operate at least one Indonesian-flagged vessel with a minimum size of 50,000 GT per vessel, crewed entirely by Indonesian nationals.

Documentary requirements

To register a vessel under the Indonesian flag, the following documents are needed:

Document	Notes
Application letter
Evidence of vessel ownership	The required evidence depends on how the vessel was acquired (see below)
Shipowner’s identity
Shipowner’s tax registration number
Vessel measurement certificate
Vessel safety examination report	Issued by a marine inspector
Power of attorney	Required if the application and registration process is represented, where the owner is an individual or group, a legal entity, resides in a place other than the place of registration, or is a ministry or institution
Proof of payment of ship transfer fees	In accordance with the laws and regulations
Recommendation letter from the responsible ministry	Regarding special fishing vessel activities
Original deletion certificate from the original flag country	Required for used foreign-flagged vessels obtained through import

The evidence of ownership depends on the vessel’s origin:

For vessels under construction at a shipyard: a shipbuilding contract or shipbuilding agreement letter, minutes of the ship handover, a shipyard certificate (builder certificate), and proof of payment for ship construction.
For vessels under construction by a traditional shipbuilder: a builder certificate acknowledged by the head of district, or a builder certificate accompanied by a certificate of ownership issued by the head of district.
For vessels previously registered under another flag: a bill of sale legalised before and attested by a public notary or by a government official authorised by the original flag country, and the protocol of delivery and acceptance.
For vessels granted by individuals: a legal entity grant certificate before the notary is required.
For inherited vessels: an inheritance statement issued by the court is required.
For vessels obtained as a result of a dispute between individuals or Indonesian entities: the final and binding court decision is required.
For vessels obtained by a government auction: the auction minutes are required.

Dual registration

Dual registration and flagging out are not possible. Under articles 160 and 167 of the Shipping Law, dual registration is prohibited.

The mortgage register

As stipulated under article 60 of the Shipping Law, registration of a mortgage is completed by a registration official through a mortgage deed. Under article 30 of MoTR No. 39/2017, a mortgage deed includes:

The number and date of the deed.
The name and domicile of the registrar and the ship transfer registrar.
The name and domicile of the mortgage giver and recipient.
The number and date of the registration deed or deed of transfer of name.
Ship data.
The basis for changing the mortgage.
The mortgage value.
Other information as agreed.

For advice on vessel registration and ship mortgages in Indonesia, contact Anggraeni and Partners at connect@ap-lawsolution.net.