Fisheries reform promises less bureaucracy

JAKARTA (JP): The government yesterday announced a deregulation package for Indonesian fisheries, which promises less bureaucracy, improved port management and the right to purchase foreign ships.

Coordinating Minister for Production and Distribution Hartarto, who announced the reform measures, told a press conference that under the new measures licensing procedures for Indonesian vessels would be slashed from 15 to eight steps and from six to five steps for vessels with foreign flags.

He said that ships landing outside general harbors could start operating after obtaining operating licenses from the Directorate General of Fisheries, while those landing inside general harbors could start operating after getting licenses from the Directorate General of Sea Transportation.

Hartarto said the measures would let selected local companies buy used foreign ships and operate them in the 200-nautical-mile Exclusive Economic Zone (EEZ).

Under the reform measures, he said, chartered foreign vessels would not be allowed to operate in Indonesia after the year 2000. Instead, the Indonesian firms which chartered the ships would be allowed to buy them.

"But locally-manufactured vessels are expected to make up most of the country's shipping fleet in the future," he said.

At yesterday's meeting, Hartarto was accompanied by Minister of Agriculture Sjarifudin Baharsjah, Minister of Transportation Haryanto Dhanutirto and Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya.

Sjarifudin said that almost 1,000 fishing ships bearing foreign flags now operate in the EEZ. Most of these are chartered by Indonesian companies. They may now be imported under the new regulations.

However, he said, importing 1,000 ships would not be enough if Indonesia intends to increase its marine fishing production by 5 percent (160,000 tons).

An additional 240 to 250 ships a year would be needed, he said.

"The government stipulates that the provision of fishing vessels in Indonesia, both wooden and steel ships, must first of all come from local manufacturers. Only after this, may the remaining demand be supplied by imports," he said.

Ships which may be imported include long-liners or purse- seiners weighing between 100 and 350 gross tons, which are considered technically and economically feasible.

He added that only companies demonstrating sound performance would be allowed to import such ships.

When asked about the amount and type of ships allowed to be imported, Hartarto said these issues had yet to be discussed by a special team.

The team consists of the director general of fisheries, the director general of sea transportation and some officials from related offices.

Director General of Fisheries F.X. Murdjijo said yesterday that Indonesian manufacturers, such as state-owned PT Industri Kapal Indonesia in Ujungpandang, South Sulawesi, were capable of producing about two-thirds of the ships, about 160 ships, required by the domestic market.

Sjarifudin said that foreign and domestic investors may own fishing vessels if the investors are approved by the Investment Coordinating Board and recommended by the Ministry of Agriculture.

Recommendations, he said, would be issued by the special team.

Separately, the chairman of the Association of Indonesian Fishing Companies, Sudwikatmono, warmly welcomed the government's deregulation package, saying it would help increase the country's income from fisheries.

He was quoted by Antara yesterday as saying that without these reforms, Indonesia's marine resources could be stolen by foreign fleets.

Fisheries have great potential, but they are under explored and under utilized.

Statistics show that Indonesia has a potential catch of 6.7 million tons a year -- 4.4 million tons from its territorial waters and 2.3 million tons from its 200-nautical-mile EEZ.

So far only 60 percent of the estimated sustainable yield from territorial waters and 24 percent from the EEZ have been utilized. (pwn)

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