Arrest of terrorists may get RI off war-risk list

Arrest of terrorists may get RI off war-risk list

Fitri Wulandari, The Jakarta Post, Jakarta

The government expressed on Friday optimism that the
encouraging progress in the investigation into the Oct. 12 Bali
bombing would move the international reinsurance industry to
remove Indonesia from the list of war-risk countries.

The government would not ask the industry to review the
listing, but it firmly believed the industry would do so, once
the international community was satisfied with the progress of
the investigation, a senior official at the Ministry of Finance
said.

"We cannot prevent them from putting Indonesia as a war-risk
because it is a market decision," Firdaus Jaelani, director of
insurance at the Ministry of Finance told The Jakarta Post.

"But if the investigation into the Bali bombing can unravel
who the mastermind was, eventually, the international reinsurance
market will take Indonesia off the list (war-risk labeled)," he
stressed.

Firdaus said thus far, the investigation by the multinational
police led by Indonesian police had demonstrated to the
international community, including the international reinsurance
market, that the government had taken concrete measures to step
up security in the country.

In less than two months, the investigation team arrested on
Thursday, Imam Samudra, the alleged leader of the gang
responsible for the terror bombing in Kuta, Bali that killed more
than 190 people, mostly Western holidaymakers.

Immediately after the bombing in Bali, the London-based Joint
Hull Committee issued a marine hull war risks cancellation
notice.

The notice, which took effect on Oct. 17, called on insurance
and reinsurance firms to cancel or amend all contracts with
vessels sailing to Indonesia. Additional premiums will be applied
should ship operators insist on entering Indonesian waters.

Shipping operators and businessmen protested the decision as
the notice immediately increased marine hull insurance premiums
by 15 percent from the previous premium, which was 3 percent
to 4 percent of a ship's value.

This could hamper the flows of goods in and out of the country
as 94.6 percent of exported and imported goods were transported
by foreign ships.

Frans Y. Sahusilawane, the chairman of the Association of
Indonesian General Insurers (AAUI) said that the association had
approached the government to see if the government could provide
subsidies to cover war-risk insurance for boats.

"But, the government said they don't have the financial
capability to do it," he said.

War-risk surcharges have also prompted foreign shipping
companies to increase container fees from Indonesia to Europe and
the United States.

For instance, according to the Indonesian Exporters
Association (GPEI), the fee for a container measuring 20 feet
long for a U.S. destination has been raised by US$500 from $2,350
to $2,850.

Meanwhile, Minister of Culture and Tourism I Gede Ardika
recently complained that many insurance companies were refusing
to provide personal accident insurance to travelers who want to
visit Indonesia.

"That's what actually prevents effort to restore tourism in
Indonesia," Ardika remarked.