Lift of ban on imports of used ships sought

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)