Japan helps Indonesia make new shipping strategy<\/p>\n
JAKARTA (JP): The government has received financial assistance
\nfrom the Japanese government to study and formulate a new
\nstrategy to help develop the country's ailing shipping industry,
\na senior government official said.<\/p>\n
Director general of sea communication at the ministry of
\ncommunication and transportation Tjuk Sukardiman said the
\nJapanese government's Japan International Cooperation Agency
\n(JICA) had provided a US$1.8 million grant to finance the study.<\/p>\n
\"In cooperation with JICA, Japan Society for the Promotion of
\nScience (JSPS), the ministry and communication and transportation
\nalong with the ministry of industry and trade expect to complete
\nthe study this year,\" Sukardiman said on Friday after a seminar
\non the country's shipping industry.<\/p>\n
The seminar was attended by delegates from JICA and JSPS.<\/p>\n
He said the study is part of preparations for the
\nimplementation of the new government regulation No. 82\/1999 on
\nwater transportation. The regulation, which was issued on Oct. 7,
\n1999, will take effect on Oct. 5, 2001.<\/p>\n
It will replace government regulation No. 17\/1988, which is
\nwidely considered to have failed in developing the country's
\nshipping industry and reduce the domination of foreign-flagged
\nships in Indonesian waters.<\/p>\n
\"Our shipping industry really is in a miserable condition.<\/p>\n
\"If we don't fix it (the system), we'll certainly lose out to
\ntough competition,\" he asserted.<\/p>\n
He said the study financed by JICA would also outline
\nstrategies to develop the country's shipbuilding industry and
\nrepair services.<\/p>\n
Quoting the ministry's 1999 data, Sukardiman said local
\nshipping companies took only a 4.79 percent share in the shipment
\nof goods to and from the country, while its share in domestic
\ntrade stood at 50.4 percent.<\/p>\n
He blamed foreign-flagged cargo ships as an important factor
\nbehind the growing domestic balance of payment deficit.<\/p>\n
\"The domination of foreign shipping companies are mostly to
\nblame for the balance of payment deficit,\" he said.<\/p>\n
According to Sukarman, the deficit in the country's balance of
\npayments increased by between $200 and $300 million a year as
\nfrom 1989, when the deficit hovered at $0.9 billion, to reach
\n$6.9 billion in 1999.<\/p>\n
Local ship-owners have often complained that the country's tax
\npolicies and bureaucratic obstacles have hampered the growth of
\nthe country's shipping industry.<\/p>\n
The lack of financial capability and skilled crew have also
\nmade local shipping companies unable to compete with foreign
\nshipping lines in transporting cargo to and from Indonesia. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-helps-indonesia-make-new-shipping-strategy-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}