Government Offers Two Options of Stimuli For Sea Transportation

The Government had issued two options of stimuli in regard to sea transportation operations. One of the stimulus was a 5% discount for every sea transportation services which was to be revised soon. In particular, three components of harbour services upon which discount were applied would be cut down to only to one or two components.

According to the Director General of Sea Transportation, what was meant by two components was, firstly discount would remain to be given only to ships carrying Indonesian flag. Formerly, ships carrying foreign flags and their agents in Indonesia serving international routs also benefited from this stimulus. Secondly: discount was only given to ship-guiding and ship delaying services, but not CHC services.

However, the two options were still to be reviewed and were expected to show result before August 14, 2009, which would then be forwarded to the Director General of Sea Transportation before any decision were taken. The discount itself were meant as payment for ship-guiding and delaying, and handling of containers at the harbour [known as container handling charge/CHC] in all general harbours managed by PT Pelabuhan Indonesia I, II, III and IV.

The revision of stimulus was carried out with the termination of regulation on discount allowance amounting to 5% [second phase] on harbour services on August 14, 2009. So far the stimuli of 5% had been given in two phases. The second phase would end by August 14, 2009 however the stimulus would still be applied in spite of the revision in the components.

A 5% discount had been given to harbour service agents, every 3 months after the drop of domestic and international cargo transportation volume after the global crisis. The first discount was given in the period of February 14 to May 15, 2009, whilst discount of the second phase was given between May 15 and August 14, 2009.

The above policy was in line with the decision of the Directorate General of Sea Transportation on the Extention of Service tariff for towing, guiding, and delaying in all Indonesian harbours issued on May 14, 2009. This issue had been brought up for discussions at the meeting with harbour operators [Pelindo] and elements of the association, i.e. Depalindo and the Indonesian National Shipowners Association [DPP INSA].