Govt distributes quotas for imports of fishing vessels
JAKARTA (JP): The government has allowed 28 companies to import 435 used and new fishing vessels and rejected proposals from 18 firms that failed to meet government requirements.
Director General of Fisheries F.X. Murdjijo said yesterday that 24 of the companies would import 406 second-hand fishing vessels and the four others would import 29 new vessels.
The companies were selected from a total of 46 which submitted their proposals to the government between Oct. 17 and Dec. 17.
Murdjijo refused to mention the names of the companies that were given the import quotas, but informed sources said they included the publicly-listed PT Daya Guna Samudera of the Djajanti Group with 60 ships -- the largest single quota given -- and PT Dynamika Banda Sejahtera of the Army-linked Artha Graha Group with 37 ships.
The government last July said that it aimed to increase national fishery production by 5 percent a year. To reach this target, 240 units of fishing vessels per year -- or a total of 960 long-liners, purse-seiners and fishnets -- must be added to the country's existing fleet until 1999.
However, since importing begins only this year, the target was revised so that 320 vessels have to be imported every year until 1999.
Last year, the government announced a set of requirements that companies must meet in order to be allowed to import. The requirements were drawn up to make sure that local fishing companies continued to buy boats from local builders.
Analysts have criticized the requirements, saying that the government's decision to allow imported fishing boats was made "halfheartedly" considering the numerous criteria set out.
Murdjijo said yesterday the 24 companies which have been allowed to import the vessels initially wanted to import 513 units. But only 406 of these met government criteria, which require imported ships to weigh more than 100 gross tons, to have operated for fewer than 10 years and to be made of steel.
From these 406 used vessels, 378 were fishing ships and 28 were lading vessels.
Murdjijo said that this year, the 24 companies which had been given importing permits were expected to import another 302 used ships and the four companies an additional 18 new vessels.
"So this year, as targeted, we expect an additional 320 vessels," he said.
Murdjijo said that based on government regulations, the companies which were allowed to bring in imports were also required to buy locally-built fishing ships.
"Thirty locally-produced fishing vessels will be bought by these 28 companies," he said.
He explained that the government had decided not to apply a ratio mechanism to determine the quota of imports based on the number of domestic vessels a company bought.
"The number of locally-produced ships that must be bought... depends on how bonafide a company is," he said.
If, after being given an import permit, a company is unable or unwilling to buy locally-produced vessels, he said, it would not be allowed to do any more importing.
"Next year we will simply revoke the import permit and pass it on to another company that is willing to buy homemade products," he said.
A government decree issued last year states that companies may import boats if they have a fishing business license or a permanent license, and if they use the vessels for their own businesses. Imported fishing boats may only operate within the country's exclusive economic zone, while imported lading boats may only transport cargo from the ports of ships bearing foreign flags.
The decree further states that priority of purchasing foreign boats would go to fishing companies already conducting partnership programs with small-scale fishing operations and cooperatives.
Priority would also go to firms that have bought at least two ships over 30 gross tons or with inboard motors greater than 90 horse power; to firms that have invested in cold storage, canning factories and infrastructure such as shipping docks or harbors; or to firms that are committed to buying new, domestically- manufactured fishing boats. (pwn)