|New Indonesian Boat Regulations|
Removes Unpopular PIB Customs Bond for
for Visiting Yachts
Richard Lofthouse of Asia Pacific Superyachts (APS) Indonesia reports, "The PIB Bond was a well-intentioned law that was often misapplied to visiting private yachts and superyachts. While there are no recorded cases of any vessel signing off on the staggering bond - 48% of the value of the boat – it more often than not became the preamble to separate negotiations, none of which were in favour of the visitors."
The PIB Bond was in fact only one of four options available to visiting yachts, noted Richard; "However, it was the only one which involved a cash transaction and so became the preferred option of certain Customs officials. It quickly became infamous in yachting circles. To many familiar with Indonesia's stunning cruising grounds, the news of the total removal of the Bond and the more relaxed regulations will be very welcome news!"
Asia Pacific Superyachts is the leading superyacht management company in Indonesia, bringing in many yachts ranging from 25m to 95m into Indonesia over the last five years. General Manager Richard Lofthouse, a strong advocate for the removal of the PIB Bond, states: "Whilst we had relatively few issues with PIB and never paid any Bond, we did find the way in which it was applied was contrary to the spirit in which we believed Indonesia wished to welcome these visitors."
"We welcome the new regulations with open arms and are increasingly positive about the progress we are making to help Indonesia realize her potential as perhaps the greatest cruising destination on the planet for our clients."
The new regulations, which come into play from 3 December 2011, mean that PIB still has to be made at first port of call. However, without the bond, a guarantee letter from a legitimate and licensed Indonesian company is now required ahead of the vessel's arrival at the first port.
Once the PIB has been processed, the vessel is cleared to cruise any destinations within Indonesia (as listed on the CAIT) and will be fully covered by this initial paperwork process. The PIB is extendable, along with the CAIT in multiples of three months up to a total of 3 years unbroken. This is clearly outstanding news for those who wish to base longer term in Indonesia exploring this diverse archipelago.
At the final port of call, the boat must be 'exported' (PEB) which has again been simplified into a relatively easy piece of paperwork which can be processed by the ship's local representative.
Overall, there is a little more planning involved – although this is nothing that cannot be offset by using a well-organized local agent – but the new security and confidence that the new PIB paperwork gives is a huge step forward.
As Richard Lofthouse puts it, "Our goal is to make Indonesian cruising as hassle free as possible. The new PIB format will not only be cheaper but will also give so much more flexibility. Whereas before we had to work in a grey area, the new regulation is much more black and white and I know that our clients, as well as everybody in the yachting community, will embrace this greater transparency."
Asked to sum up his feelings after the briefing with Customs this morning, Richard added: "We applaud the policy makers and the Customs Department of Indonesia for recognizing that the Bond had created a negative perception of Indonesia and subsequently for acting to remove this obstacle. We have been championing marine tourism here for many years, sometimes in difficult circumstances. But this news represents exciting times for us and the superyacht community as Indonesia begins to realize her true potential."
CONTACT FOR QUESTIONS /FURTHER INFORMATION ON TOPIC:
M: + 62 (0) 811 340 0668
The Yacht Support Group send news of probably the most important development in Asian Superyachting this year. Indonesia's President Susilo Bambang Yudhoyono has signed into law a new maritime tourism regulation that will change the face of yachting, not only within Indonesia but throughout the region.
The new law forms the framework to ease the regulations regarding foreign yacht visits, create conditions that will encourage investment and facilities, and stimulate the general economic development of coastal communities. The Deputy Minister for Economic Development, Dr. Edy Irawady, announced the passing of the new law when attending the ASEAN Fair in Bali last weekend. He said "our prime objective is economic stimulus for local coastal communities and this change will achieve this while creating a transparent yachting industry in Indonesia".
The law is a result of comprehensive consultancy between the Government and the private sector (led by Indo Yacht Support / Yacht Support Group co-founder Captain Cilian Budarlaigh). "...a prime example of an emerging Asian democracy working with industry stakeholders to achieve consensus and place the general good at the forefront of their efforts" said Cilian.
"This is Captain Cilian's baby... without him we would not have written it... it is his legacy", said Pak Edy. Captain Cilian countered: "In fact, it is Pak Edy's legacy as we would never have had the law put forward, let alone passed, without his energy and patronage. The real legacy will be the wonderful adventures that yachties will have when they visit this stunning island nation".
People mentioned in this article:
Captain Cilian Budarlaigh
MCA Master 3,000 tons Unlimited
Dr of Intl Trade & Business
Founding partner of Indo Yacht Support and The Yacht Support Group.
Dr. Edy Irawady
Deputy Minister. Coordinating Ministry for Economic Development, Indonesia Government.
Dr. H. Susilo Bambang Yudhoyono President of the Republic of Indonesia.