JAKARTA— Indonesian National Shipowners’ Association wants the government to continue rejecting registry of sailing vessels whose major shareholders are foreign parties since it violates Regulation No.17/2008 on Sailing Affairs.
Chair of INSA, Carmelita Hartoto, stated vessels allowed to be registered in Indonesia are those belonging to Indonesian entities, joint ventures with Indonesians being the major shareholders.
She argued vessel registry has been stipulated in Sailing Regulation and its derivative regulations such as Regulation No.20/2011 on Sea Transportation and Regulation of Transportation Ministry No.13/2012 on Vessel Registry and Origin.
“This is for the sake of our national interest, just go with the law,” she said, Tuesday (3/11).
So far, there are three sailing companies in Indonesia with foreign major shareholders finding it difficult to register the vessels since they do not abide by the Regulation No.17/2008 Article 158.
They are PT Patria Maritime Line, subsidiary of PT Astra Internasional Tbk., PT Samudera Sukses Pratama, subsidiary of PT Salim Indomas Pratama Tbk., and PT Bahana Indonor, subsidiary of PT Indocement Tunggal Prakarsa Tbk.
Carmelita assumes it is technical matters that impede the registry affairs, not cabotage principle.
She argued those three companies must be able to show that their major shareholders are Indonesian entities according to the regulation.
She expects for no misunderstanding about cabotage principle and vessel registry issue. “Those companies register new vessels after the implementation of Sailing Regulation, so the prevailing regulation is Article 158 Regulation No.17/2008,” she said.
She opines companies with foreigners as major shareholders established before the implementation of Regulation No.17/2008 will still have to adhere to cabotage principle with no exception. The vessels running in Indonesian waters must wave Indonesian flag and is operated by Indonesian crew.
Cabotage principle allows a country to decide that inter port transportation in its territory can only be carried out by vessels bearing the country’s flag.
Countries implementing such principle are USA, Japan, Europe, Canada, Australia, and China.
The principle takes root in the concept that domestic sea transportation is part of strategic power in maintaining the country’s sovereignty.
“Other countries use such principle, why don’t we do so?” she said.
Data by Ministry of Transportation states up to February 2014, the number of national trade vessel reached 13,244 units, growing by 119% than that of May 2005.
