How to Start Shipping Company in Indonesia: Setup & Requirements

Mekari Insight

With e-commerce and inter-island trade on the rise, Indonesia’s freight sector is set to hit $178.1B by 2030. For businesses eyeing sea logistics, the timing couldn’t be better to launch a shipping company.
From partnering with a licensed local operator to securing SIUPAL and vessel certifications, starting a shipping company requires careful navigation of Indonesia’s legal, licensing, and cabotage rules. Compliance is key at every stage.
Mekari’s suite of tools helps shipping companies streamline HR, accounting, tax (Klikpajak), communication (Qontak), and more — ensuring compliance, cost control, and operational efficiency from port to payroll.

Starting a shipping company in Indonesia has never been more relevant. With e-commerce growing at a CAGR of 10.41% through 2027, the need for reliable sea-based logistics is greater than ever.

Indonesia’s freight and logistics sector is expected to reach $178.1 billion by 2030, driven by inter-island trade and last-mile delivery.

If you’re exploring how to start a shipping company in Indonesia, now is the perfect time to enter the market. Here’s a step-by-step guide to help you get started.

New shareholding requirement for foreign ownership in Indonesia’s shipping sector

As of 28 October 2025, Indonesia has tightened its rules on foreign ownership in the shipping industry.

1. Foreign investors must now partner with licensed Indonesian shipping companies

Previously, foreign investors had more flexibility—they could team up with any Indonesian citizen or locally owned company, regardless of whether that partner had experience or licensing in the shipping sector. That’s no longer the case.

Under the new regulation:

Foreign investors must form a joint venture with an Indonesian company that already holds a valid shipping business license (SIUPAL).
The Indonesian partner must hold at least 51% of the shares, ensuring majority local ownership and control.
The foreign shareholder must also be a licensed shipping company in its country of origin. Special-purpose vehicles or individual investors without a shipping license can no longer hold shares in an Indonesian shipping company.

This means the door is now closed to passive foreign ownership or non-shipping entities looking to invest without operational credentials.

2. Only licensed entities can form shipping joint ventures

In line with this policy, only licensed shipping companies—both foreign and local—can directly hold equity in a shipping joint venture company (JVC).

Individuals or unrelated businesses are no longer permitted to invest in this space unless they hold the necessary shipping licenses. This is a critical change that raises the bar for entry, focusing on genuine operational partnerships over financial-only backers.

3. Cabotage principle still applies

Indonesia has reaffirmed its long-standing cabotage principle, which restricts domestic shipping services to Indonesian-flagged vessels manned by Indonesian crew.

This principle remains untouched under the amended shipping law and continues to be a cornerstone of the country’s maritime policy.

What this means for foreign investors

You must partner with a licensed Indonesian shipping company
Your company must hold a valid shipping license in your own country
Indonesian partners must hold at least 51% of shares in the JVC

Read more: Boost Efficiency with Custom Logistic Software Solutions

How to start a shipping company in Indonesia: Step-by-step guide

Starting a shipping company in Indonesia involves navigating legal, licensing, and operational requirements—all within the framework of Indonesia’s Shipping Law.

Due to strict ownership rules, foreign investors must partner with a licensed Indonesian shipping company. Here’s a clear breakdown of the process:

1. Find a local partner

Foreign investors must establish a joint venture with an Indonesian shipping company that holds a valid SIUPAL license, with the local partner owning at least 51% of the shares.

2. Incorporate the company

Register your joint venture company in compliance with Indonesian Company Law, including notarized deeds, capital requirements, and OSS (Online Single Submission) registration.

3. Register for a general business license

Once incorporated, apply for a temporary business license (NIB) through the OSS system—this will serve as your company’s primary business ID.

4. Apply for a Sea Transportation Business License (SIUPAL)

After receiving the NIB, submit an application for a Surat Izin Usaha Perusahaan Angkutan Laut (SIUPAL) to legally operate shipping activities in Indonesia. This license is mandatory for all commercial maritime operators.

5. Obtain vessel-specific certifications

For each vessel in your fleet, secure:

General vessel certificate (proof of seaworthiness)
Ship radio station certificate (for maritime communication compliance)

6. Apply for export/import licenses (if applicable)

If your company will engage in international shipping or trade, you’ll also need:

Exporter identification number (API-E)
Importer identification number (API-U)

Read more: International Business Expansion: Steps, Challenges, Strategies

Business requirements for establishing a shipping company in Indonesia

Starting a shipping company in Indonesia involves more than forming a legal entity. You must comply with national maritime laws, secure licenses, meet vessel ownership standards, and adhere to the cabotage principle.

1. Legal entity setup

To operate legally, your company must be incorporated under Indonesian law:

Form a PT PMA (foreign-owned limited liability company) if involving foreign ownership, or a locally-owned PT for domestic investors.
Reserve a business name and prepare the Deed of Establishment via an Indonesian notary.
Obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system. The NIB also acts as your import license and official company registration.

2. Mandatory licenses and permits

Before beginning operations, you must obtain specific approvals from various ministries based on your business activities. These include:

License/Permit	Purpose	Issuing Authority
SIUPAL	Authorizes shipping operations	Ministry of Transportation
General Vessel Certificate	Confirms compliance with safety and tonnage standards	Directorate General of Sea Transportation
Pollution Prevention Certificate	Ensures compliance with environmental regulations	Ministry of Environment and Forestry
Ship Radio Station Certificate	Authorizes vessel communications	Ministry of Communication and Information Technology

3. Vessel ownership and registration

To be eligible for a Sea Transportation Business License (SIUPAL), companies must meet specific vessel requirements:

Locally-owned companies must own at least one Indonesian-flagged vessel with a minimum of 175 GT.
Foreign joint venture companies (PT PMA) must own an Indonesian-flagged vessel of at least 50,000 GT, effective 28 October 2025.
All vessels must be registered under the Indonesian flag and comply with national safety, tonnage, and environmental regulations.

4. Cabotage compliance

Indonesia strictly enforces the cabotage principle, which means:

Only Indonesian-flagged and Indonesian-owned vessels may operate in domestic waters.
Violations can lead to heavy sanctions, especially under the amended Shipping Law, which introduces stricter penalties for non-compliance.

Baca Juga: 10 Things you Should Know Before Doing Business in Indonesia

How to manage shipping company operations effectively in Indonesia

Running a shipping company in Indonesia means dealing with complex, high-cost operations—from managing fleets and crews to handling taxes, compliance, and customer relationships.

With rising fuel prices, strict regulations, and increasingly digital competition, shipping companies in Indonesia need to do more with less.

This is where SaaS solutions like Mekari come in. With an integrated business ecosystem tailored to Indonesian businesses, Mekari helps shipping companies streamline operations, reduce overhead, and stay compliant—without the chaos of juggling disconnected tools.

Here’s how each Mekari product supports your shipping business:

Mekari Jurnal: Automates accounting, cash flow, asset tracking, and inventory for fuel, parts, and equipment.
Mekari Talenta: Manages crew and onshore staff HR, attendance, and payroll in full compliance with Indonesian labor law.
Mekari Qontak: Centralizes customer communication and automates sales and service across WhatsApp, email, and more.
Mekari Klikpajak: Simplifies tax calculation and reporting with direct integration to Indonesia’s tax platforms.
Mekari Expense: Tracks and controls spending on fuel, repairs, and operations with automated budgeting and approvals.
Mekari Officeless: Builds custom apps for fleet tracking, cargo monitoring, and maintenance scheduling.
Mekari Sign: Enables secure digital signing of contracts, permits, and vendor agreements—anytime, anywhere.