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)