Freight forwarding companies in Indonesia must obtain Freight Forwarding Business Licenses (Izin Usaha Jasa Pengurusan Transportasi) before being able to legally operate. Government Regulation No. 38 of 2007 requires that such licenses be issued by provincial governments; that is why the Governor of DKI Jakarta Province recently issued Gubernatorial Regulation No. 123 of 2010, which dictates the licensing process for prospective freight forwarding companies that hope to operate in Jakarta. The regulation also covers joint ventures, stipulates obligations beholden to freight forwarding companies, and sets out sanctions.
‘Freight forwarding services’ are generally agents that, upon appointment of another party, send goods to another designated party as the recipient. The agent could also perform related services, including packaging, insurance, and responsibility for certain documents; the complete definition is provided in Article 1 (7) of the Regulation.
The Freight Forwarding Business License can be issued only to a Limited Liability Company (Perusahaan Terbatas) that is established as a freight forwarding service. Aside from that, Article 2 (4) requires a Deed of Establishment, minimum capital of IDR 200 million, a Taxpayer Registration Number, and recommendation from a freight forwarding association recognized by both the government, and the Indonesian Chamber of Commerce (‘KADIN’).
Licensed ‘Sea Freight Forwarders’ (Ekspedisi Muatan Kapal Laut) and ‘Air Freight Forwarders’ (Ekspedisi Muatan Pesawat Udara) must also fulfill requirements set out by Article 2 (4) of the regulation; they do not, however, need to establish a freight forwarding company.
Article 5 elaborates the application process for a Freight Forwarding Business License. Applicants must file a request to the Head of the DKI Jakarta Transportation Office (Kepala Dinas Perhubungan), the format for which is set out in Attachment I of the regulation. Within 14 days of application, either a license will be issued, or the application rejected.
Although Article 4 permits local freight forwarding companies to cooperate with foreign companies, the cooperation must be a joint venture that is licensed with a Freight Forwarding Business License Letter (Surat Izin Usaha Jasa Pengurusan Transportasi).
Subsequent obligations on licensed businesses or joint ventures include, among others, membership in a freight forwarding association recognized by KADIN and the government, and reporting the implementation of business activities to the issuing authority.
Sanctions for violation of the regulation’s provisions, which will be administered by the Head of the DKI Jakarta Transportation Office, include written warnings, license suspension, and ultimately license revocation.
The regulation extends a 1-year timeframe for existing freight forwarding companies to comply with the aforementioned provisions.
The regulation has been in force since 1 July 2010.
Freight forwarding companies in Indonesia must obtain Freight Forwarding Business Licenses (Izin Usaha Jasa Pengurusan Transportasi) before being able to legally operate. Government Regulation No. 38 of 2007 requires that such licenses be issued by provincial governments; that is why the Governor of DKI Jakarta Province recently issued Gubernatorial Regulation No. 123 of 2010, which dictates the licensing process for prospective freight forwarding companies that hope to operate in Jakarta. The regulation also covers joint ventures, stipulates obligations beholden to freight forwarding companies, and sets out sanctions.
‘Freight forwarding services’ are generally agents that, upon appointment of another party, send goods to another designated party as the recipient. The agent could also perform related services, including packaging, insurance, and responsibility for certain documents; the complete definition is provided in Article 1 (7) of the Regulation.
The Freight Forwarding Business License can be issued only to a Limited Liability Company (Perusahaan Terbatas) that is established as a freight forwarding service. Aside from that, Article 2 (4) requires a Deed of Establishment, minimum capital of IDR 200 million, a Taxpayer Registration Number, and recommendation from a freight forwarding association recognized by both the government, and the Indonesian Chamber of Commerce (‘KADIN’).
Licensed ‘Sea Freight Forwarders’ (Ekspedisi Muatan Kapal Laut) and ‘Air Freight Forwarders’ (Ekspedisi Muatan Pesawat Udara) must also fulfill requirements set out by Article 2 (4) of the regulation; they do not, however, need to establish a freight forwarding company.
Article 5 elaborates the application process for a Freight Forwarding Business License. Applicants must file a request to the Head of the DKI Jakarta Transportation Office (Kepala Dinas Perhubungan), the format for which is set out in Attachment I of the regulation. Within 14 days of application, either a license will be issued, or the application rejected.
Although Article 4 permits local freight forwarding companies to cooperate with foreign companies, the cooperation must be a joint venture that is licensed with a Freight Forwarding Business License Letter (Surat Izin Usaha Jasa Pengurusan Transportasi).
Subsequent obligations on licensed businesses or joint ventures include, among others, membership in a freight forwarding association recognized by KADIN and the government, and reporting the implementation of business activities to the issuing authority.
Sanctions for violation of the regulation’s provisions, which will be administered by the Head of the DKI Jakarta Transportation Office, include written warnings, license suspension, and ultimately license revocation.
The regulation extends a 1-year timeframe for existing freight forwarding companies to comply with the aforementioned provisions.
The regulation has been in force since 1 July 2010.
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