Sun, 05 Apr 2009
Medan (ANTARA News) - All means of sea transport operating in Indonesia need to fly the Indonesian flag as of 2010.

"Meanwhile, commodities imported using government funds must use Indonesian ships," head of the foreign sea transportation sub directorate of the transportation ministry, Adolf R Tambunan, said here on Thursday.

According to him, this decision was already laid down in the roadmap on the use of national ships (cabotage) involving 13 ministers.

The road map was drawn up on the basis of presidential instruction No 5/2005 on the empowerment of the national shipping industry, while the 13 ministers were coordinating minister of the economy, national development planning minister, transportation minister, finance minister, home minister, trade minister, industry minister, forestry minister, national education minister, energy and mineral resources minister, marine and fishery minister, state entreprices minister and cooperatives minister.

"The decision also applies to all district heads, mayors and governors," he said.
To become host in one`s own country, all sides need to support and include the cabotage principles without exception of business players and a number of members of the Indonesian community.

Cabotage principles are a must considering that there is a sanction in the case of a violation.

To smoothen the application of the decision, he added, the government had increased the empowerment of the national shipping industry among others by providing financial, taxation and fuel supply facilities.

In view of national shipping industry empowerment, he said, the step taken by the government was establishing an integrated shipping industry and an incentive for companies wishing to build and repair own ships.

Chairman of the Indonesian National Shipowners Association`s container transport affairs Asmari Herry said the decision had actually expanded the national shipping market.

"One of the indications was that the growth of the national ships reached only 29.9 percent from 2005 to 2008, so that the use of foreign vessels continued to decline," he said.

The number of national vessels now reached 7,846 units, he said. (*)



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