Lift of ban on imports of used ships sought

JAKARTA (JP): Director General of Sea Transportation Soentoro expressed the need yesterday to lift the government ban on the import of used ships with a capacity of less than 5,000 dead weight tons (DWT).

"It is time for the government to allow domestic shipping companies to purchase used vessels to expand their fleets," he said in a seminar on sea transportation at the Aryaduta Hotel.

The government, under the proposed policy, may limit the imports of used vessels by setting a maximum ratio between new and used vessels that can be imported by a given shipping firm, said Soentoro.

The government ban on imports of used vessels, which was initiated by the office of the State Minister for Research and Development a few years ago, is aimed at promoting the sale of Caraka Jaya ships, designed by the state-owned PT PAL and built by domestic shipyards.

Soentoro also said that the country also needs to revise some of its shipping regulations, which are mostly based on laws set by the Dutch before 1945.

Meanwhile, Soentoro said the government supports the Indonesian Association of Ship-owners' (INSA) plan to help promote the use of domestic services in the transportation of Indonesian exports.

The government has already penalized 40 domestic companies which act as agents for foreign shipping firms, he said.

According to Soentoro, foreign vessels, which are allowed to enter 127 ports throughout the country, offer better prices than domestic ships.(icn)