• Export Mandatory Use Local Boat Shipping Companies Greeted Happy

    Vice Chairman of Kadin Indonesia Logistics and Supply Chain Management Rico Rustombi (from left), Chairman Rosan P. Roeslani, and Vice Chairman of Transportation Carmelita Hartoto gave a presentation at the press conference of Indonesia Transport, Logistic & Maritime Week (ITLMW) Exhibition 2017 – JIBI / Felix Jody Kinarwan

    JAKARTA – The Indonesian National Shipowners’ Association (INSA) considers the Ministry of Trade’s step to require the use of ships held by shipping companies to have a positive impact on the shipping industry and other related industries.

    To be recognized, the Ministry of Trade has released Regulation of the Minister of Trade (Permendag) no. 82 of 2017 on Terms of Use of Sea Transport and National Insurance for Export and Import of Certain Goods. This regulation requires the export of Crude Palm Oil (CPO), Coal and Rice using sea transport controlled by local companies and national insurance.

    Carmelita Hartoto, Chairman of DPP INSA said the regulation is a big leap to boost the performance of Indonesia’s trade services balance. During this time, sea transportation has always been in the spotlight because it is often one of the biggest contributor of Indonesia’s trade services trade deficit.

    This is due to the fact that the export of imports is still dominated by foreign ships. In 2016 for example, the use of foreign ships in the export of imported goods reached 93.7% while the use of white-flagged vessels only 6.3%. “We appreciate the government issuing this regulation. And we are ready to contribute in providing services to users of import export services, “said Carmelita in a press release on Tuesday (12/12/2017).

    Carmelita added that the implementation of beyond cabotage will also have a broad positive impact on other sectors, such as shipyard, component industry, banking and job creation.

    Darmansyah Tanamas, Vice Chairman III DPP INSA added Permendag. 82/2017 is the result of cooperation of all stakeholders from INSA, SOEs, related associations, and other related ministries.

    He said that the rules that require the use of Indonesian-flagged vessels for export-import activities have also gone through a long process. “This process is not instantaneous so we expect this rule to run consistently, and have an impact on improving the performance of Indonesia’s trade services balance and the positive impact on other sectors,” he explained.

    In 2012, INSA together with SOEs and related ministries to form a team of task force to formulate the acceleration of the program beyond cabotage in Indonesia. Then on February 27, 2013, the Ministry of Trade together with the business world signed a Memorandum of Understanding to change the terms of export trade from FOB system to CIF. The signing of the MoU involved related associations, banks, and the Ministry of Commerce.

    In June 2017, the government issued the XV Economic Policy Package related to the Competitiveness of National Logistics Service Providers. One of the policy focuses on the provision of opportunities and the increasing role and scale of business for transportation and national insurance in transporting imported goods.

    ———
    Sources: http://industri.bisnis.com/read/20171212/98/717595/ekspor-wajib-pakai-kapal-lokal-disambut-gembira-perusahaan-pelayaran
    Translated by Aryaputra PandeBIC

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