INSA to sue Ministry of Transportation<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Shipowners Association (INSA) plans to take
\nlegal action against the Ministry of Transportation for what it
\ncalls the government's \"disregard of violations to a shipping
\nregulation\" by foreign-based shipping companies.<\/p>\n
INSA chairman Barens Th. Saragih said the ministry had failed
\nto protect local shipping lines from potential losses caused by
\nforeign companies that refuse to operate Indonesian-registered
\ncargo vessels as required by the regulation.<\/p>\n
\"We will file a lawsuit with the state administrative court
\nagainst the Ministry of Transportation unless it takes stern
\nmeasures against violators,\" Barens said over the weekend.<\/p>\n
Barens feared that the condition would squeeze local shipping
\nlines out of the business as overseas-registered shipping lines
\ntakeover the transportation of goods into and out of the country.<\/p>\n
He explained that under Government Regulation No. 82\/1999 on
\nsea transportation, foreign shipping lines transporting goods in
\nand out of the country should be affiliated with a local agency
\nand own at least one vessel with a minimum weight of 5,000 gross
\ntons operating under the Indonesian flag.<\/p>\n
However, many foreign-based companies are not ready to meet
\nthe requirement and have asked the government for a grace period
\nto allow them to buy local-registered vessels.<\/p>\n
The Ministry of Transportation agreed to postpone the
\nimplementation of the regulation until Oct. 5 this year.<\/p>\n
But when the second deadline expired, the foreign-based
\nshipping lines requested an extension, Barens said.<\/p>\n
\"The ministry must now uphold the regulation, as the extension
\nexpired a week ago. Around 140 foreign-based agencies are still
\nunable to comply with the regulation and they should be
\npenalized,\" he said.<\/p>\n
He explained that the companies were still using ships in
\nIndonesian waters that were registered and normally berthed in
\nother countries.<\/p>\n
Officials from the Ministry of Transportation could not be
\nreached for comment.<\/p>\n
Local shipping lines have faced various problems over the year
\narising from unfavorable government policies that hurt the local
\nshipping industry.<\/p>\n
So much so that local shipping lines currently account for
\nonly 5.4 percent of the shipment of goods into and out of the
\ncountry. Foreign-owned ships transport the remaining 94.6 percent
\nof exported and imported goods, which reach 350 million tons
\nannually.<\/p>\n
INSA has often called on the government to review its shipping
\nindustry policy, warning that foreign shipping companies would
\nentirely control the industry in the near future unless there is
\na change in policy.<\/p>\n
However, the government has always turned a deaf ear to the
\ncomplaints.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/insa-to-sue-ministry-of-transportation-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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