Moratorium On Private Port Licenses Could Leave Miners High And Dry

1. Introduction

Under Indonesian law, private entities can apply for a license to construct, operate and manage a dedicated or "special" sea terminal ("Special Terminal")¹ for their own cargo loading/unloading and sea transportation operations ("Special Terminal License").²    This license, which enables a company that has a main line of business other than port management to own and operate its own vessel berthing facilities, has long served as a solution for the transportation needs of companies operating in remote areas, far removed from the nearest public ports. Large-scale industrial estates also often rely on the license to provide shipping access to their tenants. 

Further, the holder of a Special Terminal License may apply for an additional license to allow its terminal to be used by third parties (known as a "Special Terminal - Temporary Public Use License   ").³