- The Directorate-General of Sea Transportation at the Ministry of Transportation ("Ministry") has issued Circular No. SE-DJPL 20 of 2024 on the Inspection and Supervision of Sea Labor Agreements (Perjanjian Kerja Laut – "PKL") on the Basic Wages of Crew Members Working on Indonesian-Flagged Vessels Operating in Indonesian Waters. The Director-General, Antoni Arif Priadi, has stated that the Circular aims to provide improved legal protection and certainty for these crew members.
- The new Circular is being aimed at the heads of main and special port authority offices and other relevant port administration offices across Indonesia. The Circular emphasizes the need for guidelines that address the setting of basic wages within PKL to be drawn up for use by unit heads and shipowners/operators. Said guidelines should ensure that wages take the relevant provincial minimum wages (Upah Minimum Provinsi/UMP) into consideration, as determined by the governor of the regions in which PKL are signed. Antoni has also clarified that the basic wage will be determined based on the lowest-ranking position within a given crew in accordance with the crew list. Furthermore, the basic wage excludes other allowances such as overtime pay and leave pay.
- Heads of offices are instructed to inspect and supervise all PKL and crew list approvals to ensure compliance with the Circular. The Circular is in alignment with the 1982 United Nations Convention on the Law of the Sea, which mandates that countries should establish minimum basic wages for crew members who work on national-flagged vessels. The issuance of the Circular also follows in the wake of Minister of Transportation Regulation No. 58 of 2021. Wage agreements should be based on consensus between the Indonesian National Shipowners’ Association (INSA), the Seafarers’ Association and the Directorate-General of Sea Transportation.
- Any acts of non-compliance with the basic wage provisions that are committed by shipowners/operators may result in the imposition of administrative sanctions. The Circular came into effect on 19 June 2024 and unit heads at the Directorate-General of Sea Transportation are tasked with disseminating, supervising and reporting on its implementation. (ANT)
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