Thu, 14 Jul 1994

Companies allowed to import fishing vessels

JAKARTA (JP): The government might now allow companies to import fishing vessels to meet the urgent need for specific ships to maximize the exploitation of Indonesia's marine potentials.

"Many businessmen involved in the domestic fishing industry complain about the limited availability of fishing vessels," State Minister of Investment Sanyoto Sastrowardoyo told reporters, yesterday, after a meeting of the Agri-Business Club.

"In the meantime, the national shipyards are not meeting increasing demand for fishing vessels," said Sanyoto, who is also chairman of the Investment Coordinating Board (BKPM).

The government has banned imports on fishing vessels since 1990 but allowed fishery businessmen to charter foreign vessels under their management. Before 1990, the government allowed businessmen to import fishing vessels on the condition that they procured one vessel from the domestic market for each ship they imported.

The ban was originally meant to support the development of the domestic shipbuilding industry but local shipyards cannot meet increasing demands.

"The local shipyards have not developed much since then," Sanyoto was quoted by Antara news agency as saying.

"It will be better to import vessels to harvest the fish ourselves, rather than letting foreign vessels steal them," he added.

Sanyoto said businessmen should be allowed to import half of the total requirement for fishing vessels, while the rest can be supplied by local shipyards.

Indonesia's sea waters, including the exclusive economic zones , are able to yield 6.7 million tons of fish per year but only 38 percent of the capacity is harvested, Sanyoto said.

Director General of Fishery Muchtar Abdullah said Indonesia needs about 660 new fishing vessels of 20 to 300 gross tons to tap the total capacity. Out of the 600 vessels, 157 are needed to replace the old ones and the rest are needed to replace the ones that are currently being chartered from foreign fishing companies.(02)