Indonesian Political, Business & Finance News

Pro-National Ship Regulation to be Completed in June

| | Source: TEMPO
TEMPO Interactive, Jakarta: The government is targeting that the regulation on national ship empowerment will be completed in June 2007.

The regulation is aimed at backing up Presidential Instruction Number 5/2005 on the empowerment of National Shipping Industry which was been enacted two years ago.

“We are certainly planning an acceleration in the regulation so that there is greater clarity soon,” said Transportation Minister Hatta Rajasa in his introductory speech to the “Indonesian Cabutage Advocation Forum 2007” at the Nikko Hotel, Jakarta.

Greater clarity of this regulation, he stated, will make the development of the national shipping industry easier to understand.

Previously, an international convention on maritime loans and international mortgages was ratified, and Ministerial Decision Number 71/2005 on Domestic Inter-Port Goods or Cargo Shipment was issued.

“These both state it is required that national ships must be utilized,” he said.

Hatta explained that the ministerial regulation was aimed at correcting one point in Law Number 21/1992 on Shipping, which does not support the empowerment of national ships.

The said point stated that if national ships were no longer capable of being used then foreign ships could be used.

The Department of Transportation will reduce the number of their harbors as well, with open harbors, currently totaling 141 units, being trimmed down to 21.

Harun Mahbub
Tags: business
View JSON | Print