On 19 January 2023, the President issued PR No. 8/2023 which provides extensive regulation on the management of sunken ship cargoes (BMKT), specifically on the salvation of BMKT and the utilization of BMKT.

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Legal Alert February 2023
New Regulation on the Management of Sunken
Ship Cargoes (BMKT)
I. Introduction and General Overview
On 19 January 2023, the President of the Republic of Indonesia issued The
Presidential Regulation Number 8 of 2023 on Management of Sunken Ship
Cargoes (“PR No. 8/2023”) with the consideration, among others, to optimize the
management of sunken ship cargoes which eventually lead to the increase of
efficiency to support national development.1 The issuance of PR No. 8/2023
simultaneously revokes the previous presidential decrees, namely Presidential
Decree Number 25 of 1992 on the Distribution of Proceeds from Sunken Ship
Cargoes between the Government and Companies (“PD No. 25/1992”) and
Presidential Decree Number 19 of 2007 on the National Committee for the
Salvation and Utilization of Sunken Ship Cargoes as lastly amended by the
Presidential Decree Number 12 of 2009 (“PD No. 19/2007”).2
Sunken Ship Cargoes (Barang Muatan Kapal Tenggelam or “BMKT”) is defined
as a salvage that has historical, scientific, cultural, and/or economic value located
on the seabed.3 Further, BMKT is a marine resource in the form of Object that is
Suspected as a Cultural Heritage (Objek yang Diduga Cagar Budaya or “ODCB”)
or non-ODCB.4 The form of BMKT, whether as ODCB or non-ODCB, shall be
determined based on the assessment conducted by the Ministry of Education,
Culture, Research, and Technology which shall be stated in the statement letter.5
Should the BMKT be categorized as ODCB, then the management of BMKT shall
be conducted in accordance with provisions of laws and regulations in the cultural
heritage sector.6 However, should the BMKT be categorized as non-ODCB, then
the management of said BMKT shall be conducted in accordance with PR No.
8/2023.7
a. Unlike the previous stipulations in PD No. 19/2007 which regulated a 50
(fifty) years limitation to be categorized as BMKT,8 PR No. 8/2023 no longer
stipulates time limitation on the definition of BMKT.9 Furthermore, PR No.
8/2023 also provides a comprehensive stipulation regarding the
management of BMKT, especially the management of non-ODCB BMKT,
compared to the previous stipulation in PD No. 25/1992 and PD No. 19/2007
1
Letter b, Consideration of PR No. 8/2023.
2
Article 17 of PR No. 8/2023.
3
Article 1 (1) of PR No. 8/2023.
4
Article 2 (1) of PR No. 8/2023.
5
Article 2 (2) and (3) of PR No. 8/2023.
6
Article 2 (4) of PR No. 8/2023.
7
Article 2 (5) of PR No. 8/2023.
8
Article 1 (1) of PD No. 19/2007.
9
Article 1 (1) of PR No. 8/2023.
On 19 January 2023, the
President issued PR No.
8/2023 which provides
extensive regulation on
the management of
sunken ship cargoes
(BMKT), specifically on
the salvation of BMKT and
the utilization of BMKT.

2. AHRP Legal Alert Page 2 of 6
combined. This writing will further provide an insight into the key
amendments and additions in the management of BMKT under PR No.
8/2023.
II. Key Changes
Based on Article 3 of PR No. 8/2023, the management of non-ODCB BMKT shall
be conducted through (a) salvation and/or (b) utilization of BMKT. While Article 3
of PR No. 8/2023 clearly does not mention survey as one of the methods in
managing non-ODCB BMKT which was mentioned in Article 1 paragraph (2) of PD
No. 19/2007, PR No. 8/2023 introduces an extensive regulation on the salvation
and utilization of non-ODCB BMKT as elaborated below.
A. Salvation of BMKT
Salvation of BMKT is an activity of lifting BMKT from under the water and
transferring it from the origin location of the discovery to the BMKT storage area.10
Said salvation shall be conducted in territorial waters or additional zones and at a
location coordinate of BMKT with a radius of 500 (five hundred) meters.11 The
salvation of BMKT shall be conducted by business actors through business
licensing in accordance with the provisions of laws and regulations in the risk-
based business licensing sector.12
In relation to the party conducting salvation of BMKT, PR No. 8/2023 explicitly
stipulates legal basis for business actors through Article 1 (4) Jo. Article 3 (a) Jo.
Article 5 of PR No. 8/2023.13 Whereas previously the party conducting the salvation
of BMKT was National Committee of the Salvation and Utilization of Sunken Ship
Cargoes (Panitia Nasional Pengangkatan dan Pemanfaatan Benda Berharga Asal
Muatan Kapal yang Tenggelam or “PANNAS BMKT”) which was structurally under
and therefore was responsible to the President of the Republic of Indonesia.14 The
tasks of PANNAS BMKT, among others, were to (1) coordinate the activities of
department and other relevant institutions related to the management of BMKT
and (2) coordinate the surveillance of survey, salvation, and utilization of BMKT.15
According to Article 6 of PR No. 8/2023, there are two stages in the salvation of
BMKT, as follows:
1. retrieval of BMKT, which is conducted through diving by divers who own a
certificate of technical diving specialization which are issued by an
accredited institution in accordance with provisions of laws and regulations
by considering (a) the condition of BMKT, (b) the marine ecosystems, and
(c) human safety.16
10
Article 1 (2) of PR No. 8/2023.
11
Article 4 of PR No. 8/2023.
12
Article 5 of PR No. 8/2023.
13
Article 1 (4) Jo. Article 3 (a) Jo. Article 5 of PR No. 8/2023.
14
Article 3 (2) of PD No. 19/2007.
15
Article 8 (3) of PD No. 19/2007.
16
Article 7 (1), (2), and (3) of PR No. 8/2023.

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2. transfer of BMKT, which is conducted from the ship to a storage area and
shall be carried out carefully to prevent any damage to the BMKT.17 The
transfer of BMKT includes packing and transportation.18
Such retrieval and transfer are conducted in accordance with the laws and
regulations regarding the standard business activities and products in the
implementation of risk-based business licensing in the marine and fisheries
sector.19 Furthermore, the salvation of BMKT shall simultaneously be
accompanied by the handling of BMKT which is conducted (1) on the ship, which
include cleaning, immersion, and packing; and (2) in the warehouse, which include
advanced immersion, classification, granting of identity, and storage.20 Further
stipulation on procedures for the handling of BMKT shall be regulated under a
Regulation of Minister of Marine Affairs and Fisheries.21
Both retrieval and transfer of BMKT shall be recorded and documented by the party
who conducts the retrieval of BMKT.22 Furthermore, the recordation and
documentation shall be verified which is carried out by (1) re-examining the types
and amounts of goods which are retrieved and transferred (2) examining the
conformity to the recordation and documentation.23
B. Utilization of BMKT
Utilization of BMKT is an activity of using or taking advantage of BMKT and/or
BMKT sites.24 In relation to the utilization of BMKT, PR No. 8/2023 provides a more
detailed stipulation, whereas the previous PD No. 19/2007 only provided definition
of BMKT utilization as activities which include sales to the third party and other
utilization for the government.25
Based on Article 12 of PR No. 8/2023, utilization of BMKT should be conducted,
either by on-site or auction-based sales. In the terms of on-site utilization, BMKT
is utilized in the location which the relevant BMKT has been discovered.26 Further,
on-site BMKT utilization should be conducted through the management of
conservation zone and/or the management of marine tourism which shall be
carried out in accordance with provisions of laws and regulations.27
In the terms of auction-based sales, such BMKT has been salvaged and is not
utilized through on-site.28 Auction-based sales of BMKT is conducted by the State
Assets and Auction Service Office (Kantor Pelayanan Kekayaan Negara dan
17
Article 8 (1) and (2) of PR No. 8/2023.
18
Article 8 (3) of PR No. 8/2023.
19
Article 7 (4) and Article 8 (4) of PR No. 8/2023.
20
Article 9 (1), (2), and (3) of PR No. 8/2023.
21
Article 9 (4) of PR No. 8/2023.
22
Article 10 (2) of PR No. 8/2023.
23
Article 10 (3) and (4) of PR No. 8/2023.
24
Article 1 (3) of PR No. 8/2023.
25
Article 1 (5) of PD No. 19/2007.
26
Article 13 (1) of PR No. 8/2023.
27
Article 13 (2) and (3) of PR No. 8/2023.
28
Article 14 (1) of PR No. 8/2023.

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Lelang or “KPKNL”) that is in charge of the state auction in accordance with
provisions of laws and regulations in the auction sector at the request of the
Minister of Marine Affairs and Fisheries.29 Further, an auction-based sales shall be
preceded by an assessment of BMKT that is conducted by a state assessor or a
public assessor appointed by the Minister of Marine Affairs and Fisheries.30 This
differs from the previous regulation where Article 2 paragraph (1) of PD No.
25/1992 regulated that the approval of PANNAS BMKT as a requirement in
conducting auction-based sales.
In relation to the utilization of BMKT in the form of auction-based sales, the profit
earned said auction shall be deductible with auction duty in accordance with
provisions in the auction sector and the net profit shall be distributed with the
following provisions: 45% (forty-five percent) of the net profit for the central
government and the remaining 55% (fifty-five percent) of the net profit for the
business actors.31 The Minister of Marine Affairs and Fisheries shall receive the
net profit and deposit said profit to the state treasury.32 In the event the BMKT is
not sold within 3 (three) times of auctions, the BMKT may be divided into the form
of goods with the same percentage as mentioned above.33 Distribution of such
goods shall be conducted based on the amount of goods with the same
classification and quality in accordance with the value as set out in an assessment
report.34
Comparatively, PD No. 25/1992 previously set a profit sharing for auction-based
sales of BMKT with the provisions of 50% (fifty percent) of gross profit for the
central government and the remaining 50% (fifty percent) of gross profit for
the company,35 which the central government’ profits share includes any payable
taxes that were imposed upon the company.36
29
Article 14 (2) of PR No. 8/2023.
30
Article 14 (3) and Article 14 (4) of PR No. 8/2023.
31
Article 15 (3) of PR No. 8/2023.
32
Article 15 (4) of PR No. 8/2023.
33
Article 15 (5) and Article 15 (6) of PR No. 8/2023.
34
Article 15 (7) of PR No. 8/2023.
35
Article 2 (2) of PD No. 25/1992.
36
Article 2 (2) PD No. 25/1992.

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The abovementioned management of BMKT could be illustrated in a flowchart as
follows:
Flowchart 1. Management of BMKT

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Bibliography/References
1. Presidential Regulation Number 8 of 2023 on the Management of Sunken
Ship Cargoes (“PR No. 8/2023”).
2. Presidential Decree Number 19 of 2007 on the National Committee for the
Salvation and Utilization of Sunken Ship Cargoes as lastly amended by the
Presidential Decree Number 12 of 2009 (“PD No. 19/2007”).
3. Presidential Decree Number 25 of 1992 on the Distribution of Proceeds from
Sunken Ship Cargoes between the Government and Companies (“PD No.
25/1992”).

7. This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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