Thursday, 13 November 2014


The shipping industry expects the government to concentrate on preparing sea transport logistics sector to face the ASEAN Economic Community (AEC) 2015. Currently, the competitiveness of sea transport logistics encouraging increase of the share of national ship transport sector in overseas transportation (exports and imports), which is still low. So far, the government has published a Decree of Minister of Finance No. 41/2014 on the obligation to keep records of export value based on CIF value.

In order to face AEC in 2015, the shipping sector should be provided with a relaxation policy in the fiscal and monetary sector and technical rules in order to be on par with other countries in the ASEAN region. These policies are in accordance with Law No. 17/2018 on shipping. Article 57 stated that the empowerment of national sea transport industry must be done by the government. Empowerment of the shipping industry is by providing financing and taxation facilities, facilitating long-term partnership contract between the owner of the goods and the owner of the vessel and to guarantee the available of oil fuel for transportation in the waters.

Ajiph Razifwan Anwar, head of Maritime Transport of the Indonesian Transportation Society (MTI), in Jakarta, on Wednesday (October 8), considered that the government needs to encourage port efficiency and set cruise trajectory system before AEC 2015. Ajiph said that liberalization in AEC 2015 covers seven priority services sectors. To date, the airline industry is one of the services sectors, while the shipping industry is predicted to be at a later stage.

To the end, the government should immediately pursue the readiness of the shipping industry with regard to AEC, especially regarding the reduction of national logistics cost which reached 26% of GDP. According to him, Indonesia cannot just be proud of the growth of marine transport population which reached 13,000 ships, if the cost of sea transport is more expensive than other countries. He pointed out that the cost of shipment of 20 TEU containers from Jakarta to Kendari is more expensive than if the goods were transported by train to Surabaya and shipped to Kendari.  This condition is because competition among shipping operators on some routes is not impartial.

The same thing is also expressed by the Director of the National Maritime institute (NAMARIN), Siswanto Rusdi. According to Siswanto, the challenge for the shipping industry next year after the implementation of AEC will be more complex.

He revealed that NAMARIN encourage to the birth of Presidential Instruction No. 5/2005 on National Shipping Industry Empowerment. Through the Presidential Instruction, the cabotage principle is revitalized, which is then formally adopted by Law No. 17/2008 on shipping. Through this regulation, starting 2014, the national shipping industry is encourage to use domestic ships (cabotage principle). Since it was enacted in 2005, national shipping fleet increased by 3,000 units, bringing the total of national ships to more than 10,000 units. In the last five years, INSA recorded that investment to support the cabotage principle is through the purchase of 6,157 units of ships worth USD 15.4 billion.

NAMARIN, said Siswanto, also encouraged the Indonesian National Ship-owners Association (INSA) to create a breakthrough in supporting the national shipyards. Another problem in the cabotage principle that needs to be addressed by INSA is equality between all players of the shipping industry. He considered that so far, the cabotage principle is more profitable to well-established shipping companies, which number is small. INSA should encourage so that the cabotage principle involves small-scale shipping companies. Siswanto asserted that if INSA could successfully perform an internal consolidation, empower, and unite the role of the shipping industry in cabotage principle, the national shipping industry will be able to compete in AEC 2015. (E)

Business New -  October 10, 2014

No comments: