Contributed by: Norton Rose: Stephen Woods (Senior Associate, Singapore), Ben Rose (Partner, Singapore) and Susandarini (Partner, Jakarta). In May 2011, broad cabotage rules applying to the Indonesian domestic sea carriage sector came into effect which significantly increased the practical and compliance obstacles for vessel owners operating in Indonesian waters.  A year on, estimates suggest a significant percentage of fleets operating in Indonesian waters have yet to fully catch up with the new regime. Many foreign vessel owners and operators have been relying on temporary exemptions to the rules whilst exploring ways to comply with the regime in a manner that lawfully mitigates the effect of the new restrictions.

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