ITF urges improvements in local shipping industry<\/p>\n
Ridwan Max Sijabat, The Jakarta Post\/Jakarta<\/p>\n
The International Transport Federation (ITF) has urged the
\ngovernment to fully enforce Presidential Regulation No. 5\/2005,
\nwhich applies cabotage in Indonesian waters, as part of a
\ncampaign to have domestic shipowners register their vessels with
\nthe Ministry of Transportation and improve conditions for the
\nmore than 80,000 workers in the shipping industry.<\/p>\n
ITF executive John Wood said the federation was deeply
\nconcerned over the lack of attention from the government,
\nconsidering that the country relied for a large part of its
\nfreight transportation on the shipping sector.<\/p>\n
"The government has the potential to lose billions of dollars in
\ntaxes from domestic vessels annually. Thousands of seafarers are
\npoorly paid due to weak law enforcement as most ships, especially
\nabove 2,000-ton cargo vessels belonging to Indonesian
\nbusinessmen, still use flags of convenience (FOC)," he told The
\nJakarta Post after launching the campaign on Friday.<\/p>\n
Wood said most shipowners have registered their vessels in
\nforeign countries such as Liberia, Honduras, Panama and Greece in
\nan attempt to avoid taxes. Many also prefer to employ foreigners
\nrather than Indonesian seamen.<\/p>\n
Presidential Regulation No. 5\/2005, which was issued in March,
\nstipulates that the country's exports and imports have to be
\ntransported by domestic shipping firms in an attempt to protect
\nthe domestic shipping industry and to improve labor conditions.<\/p>\n
At the moment, only 6,500 vessels, including fishing vessels,
\nare registered with the transportation ministry, and their
\nworkers are paid below minimum wage levels.<\/p>\n
Simon des Baux, ITF representative in Tokyo, said Indonesia
\nshould learn from Japan which had long applied cabotage so as to
\nincrease the country's tax revenue from the shipping industry and
\nimprove labor conditions in the sector.<\/p>\n
"The government should also take resolute action against
\ncorrupt officials and against FOC vessels that generally neglect
\nthe ILO conventions on minimum wages, insurance schemes and the
\nmarine environment," he said, adding that the Japanese
\nauthorities did not allow FOC Japanese vessels to transport
\nJapanese exports and imports, and also prosecuted ships that
\nviolated ILO conventions or polluted the marine environment.<\/p>\n
Meanwhile, the Indonesian Seafarers Association (KPI) said it
\nwould make regular visits to domestic vessels in all major ports
\nto check on labor conditions and campaign for the use of national
\nflags.<\/p>\n
"The KPI will report domestic vessels violating the regulation
\nto the ministry and bring lawsuits against vessels failing to
\ncomply with core labor standards, including insurance
\nrequirements," said Hanafie Rustandi, chairman of the KPI.<\/p>\n
He also said the KPI and ITF would hold talks with the Indonesian
\nNational Shipowners Association (INSA) and port authorities
\nnationwide to ensure that the necessary measures were taken to
\nforce all domestic vessels to use the national flag.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/itf-urges-improvements-in-local-shipping-industry-1447893297",
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"sponsor": "Okusi Associates",
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