New decree for fishing-boat imports

JAKARTA (JP): The government announced a set of requirements yesterday for companies wishing to import fishing boats, in a move to ensure that local companies buy local ships, following the fisheries deregulation package issued in July.

Director General of Fisheries F.X. Murdjijo said the requirements were expected to guarantee that local fishing companies would still buy boats from local manufacturers. He was speaking at a press conference also attended by fisheries executives.

The requirements are stipulated in a Director General of Fisheries decree on the purchase of fishing and lading vessels dated Oct. 9, 1996.

The July deregulatory measures let local fishing firms buy imported ships.

"But domestic fishing companies must prioritize the purchase of domestic products. Only when domestic boats do not meet current demand, can the companies import foreign vessels," he said.

Murdjijo said Indonesia needed 240 more fishing boats every year.

According to the July measures, locally made ships should be purchased in preference to foreign ships.

"If the domestic shipping industry can provide 40 vessels, for example, the remaining 200 may be imported," Murdjijo said.

He refused to reveal the production capacity of Indonesia's ship-building companies, but earlier reports said that local manufacturers could produce about 160 vessels a year, or two- thirds of domestic demand.

Murdjijo said that, according to the decree, local fishing companies could import boats if they had a fishing business license or a permanent license, and if they used the vessels for their own businesses.

Imported fishing boats may only operate within the exclusive economic zone, while imported lading boats may only transport cargo from the ports of ships bearing foreign flags.

The decree further states that priority on purchasing foreign boats will go to fishing companies already conducting partnership programs with small-scale fishing operations and cooperatives. Priority will also go to firms that have bought at least two ships over 30 gross tons or with inboard motors over 90 horse power; to firms that have invested in cold-storages, canning factories and infrastructure, such as shipping docks or harbors; or to firms that are committed to buying new, domestically- manufactured fishing boats.

Nationalism

"We need to state this so that local fishing firms will continue to buy from local shipyards... We're asking for nationalism," Murdjijo said.

"The more requirements a company can meet, the bigger opportunity it has to import foreign ships," he added.

Local fishing companies have long complained that locally- manufactured vessels are too expensive compared to foreign ships and that banks are reluctant to give them loans because of risk.

On the price of fishing boats, Murdjijo said the government was planning to reduce import taxes on components used by local dockyards to reduce the price of locally-built ships.

He said the fishing companies allowed to import fishing vessels would be determined by a team consisting of the director generals of fisheries, sea transportation, metal and machinery and chemical industries, the deputy of applied and basic science studies of the Agency for Technology Assessments and Applications and the assistant to the coordinating minister of production and distribution.

The decree stated that companies should submit their proposals to import fishing boats before the proposals are considered between Oct. 17 and Dec. 17, 1996. In future years, selection of suitable companies will be made annually. (pwn)