Govt distributes quotas for imports of fishing vessels

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)