Govt to deregulate fishing sector

JAKARTA (JP): The government will remove a ban preventing Indonesian companies from buying and operating foreign ships in Indonesian waters, an official says.

Coordinating Minister for Production and Distribution, Hartarto, said after a meeting with President Soeharto at Merdeka Palace yesterday that the lifting of the ban would be among reform measures to be announced on Thursday. The measures will specifically cover fisheries.

Hartarto said that by the year 2000, no chartered foreign vessels would operate in Indonesia. Instead, Indonesian firms which previously chartered ships would be allowed to buy them with credit, which could be repaid with their catches.

"And if an Indonesian fishing firm has limited resources, it can establish a joint venture with a foreign company," he said.

In yesterday's meeting, Hartarto was accompanied by Minister of Agriculture Sjarifudin Baharsjah, Minister of Transportation Haryanto Dhanutirto, Minister/State Secretary Moerdiono and Secretary for Development Supervision, Tuk Setyohadi, who is also the chairman of the Federation of Indonesian Fishermen.

Hartarto estimated that about 945 foreign fishing vessels now operate in Indonesian waters.

He would not detail the reform measures, but did say they would focus on improving fishing ports' management and upgrading domestic fishing fleets.

Hartarto said the measures would be directed at remote fishing operations and those within the exclusive economic zone (EEZ).

Fishing operations have utilized only 60 percent of the sustainable yield in territorial waters and only 16 percent of the EEZ's sustainable yield, he said.

Hartarto said the measures would aim to increase the local number of fishing vessels by at least 5 percent a year, as targeted by the Ministry of Agriculture.

"To meet this target, we will need an additional 240 vessels," he said.

He said that in spite of the new measures, domestic companies are still expected to buy locally-made vessels: "Most of the 240 ships are expected to come from local producers and the rest from imports." (pwn)