Govt to naturalize leased foreign fishing vessels
Govt to naturalize leased foreign fishing vessels
JAKARTA (JP): The Ministry of Agriculture is proposing that
the President should allow domestic ownership of foreign fishing
vessels currently leased by Indonesian companies, according to a
senior official.
Director General of Fisheries F.X. Murdjijo said yesterday
that the proposal is now waiting for approval from President
Soeharto.
"If the President gives his approval, more than 900 fishing
vessels will thus be naturalized," he said during a break in a
hearing with members of the House of Representatives' commission
for agriculture and forestry. Naturalization is the switching of
ownership from foreign to domestic entities
He said that in the next two or three years, the government
may also consider abolishing the leasing system and replace it
with a requirement for foreign firms to establish joint ventures
with Indonesian partners.
The joint-venture system, he said, can be made similar to the
present ruling which requires certain foreign investors wanting
to establish industrial ventures to team up with Indonesian
partners.
"Joint ventures between the former owners of boats and their
Indonesian partners can be done in various fishery-related
sectors, such the fish-processing industry," Murdjijo said.
Fishing companies asked the government last year to allow the
naturalization of foreign fishing boats operating in Indonesia's
territorial waters.
The Federation of Indonesian Fishermen (HNSI) and the
Association of Indonesian Fishing Companies (Gappindo) considered
that naturalization -- -- was required to boost productivity in
the fisheries sector.
Indonesia, which presently lacks sufficient fishing vessels,
allows foreign vessels to operate in its territorial waters. As a
result, a large portion of Indonesia's marine resources have been
taken out of the country, both legally and illegally, by foreign
fleets.
The government allows Indonesians to lease foreign vessels but
bans the importation of used foreign fishing vessels. Meanwhile,
Indonesian firms are reluctant to buy locally-manufactured
vessels because of their expensive prices.
Value added tax
Murdjijo stated yesterday that the government's most recent
reform measures, announced last month, did not yet allow the
importation of used fishing vessels.
The deregulation, he said, only abolished the value added tax
on imports of new fishing vessels.
"Right now, the abolition will cut back the prices of imported
fishing vessels. But in the future, when the government decides
to allow imports of used vessels and shipping equipment, it will
allow prices to go even lower," he said.
Murdjijo acknowledged that the removal of the value added tax
may be an indication that the government will gradually open up
imports of used fishing vessels.
"I hope this is the direction we're heading to," he said.
Murdjijo said his office had so far issued 674 warnings to
delinquent fishing vessels owned by Indonesian companies and
revoked the licenses, or banned the operation, of 53 others.
The licenses of 10 foreign fishing boats have been revoked so
far for fishing in prohibited waters and using improper
equipment. (pwn)