• Mandatory Ship for Export Delayed to 2020, Here’s the Response of INSA

    JAKARTA – Shipowners believe that the delay in national vessel use for certain export and import commodities becomes a fair solution for all stakeholders. Entrepreneurs hope that the implementation of the rules requiring the use of national vessels by 2020 will no longer be postponed.

    Chairman of the Indonesian National Shipowners’ Association (INSA) DPP, Carmelita Hartoto said the delay in the Regulation of the Minister of Trade which requires the use of national sea transport is a solution in developing national shipping without disturbing export activities.

    To note, in November 2017 the Ministry of Trade issued PM No.82 of 2018. This rule generally requires the use of national vessels and domestic insurance for the export of coal and palm oil and for the import of rice. This rule is applied on May 1, 2018 or six months after the rule is issued.

    Kemendag then released PM No.48 of 2018 which changed its contents some provisions in PM 82/2017. The substantial change is the delay of applying the national ship liability from May 1, 2018 to May 1, 2020. Meanwhile, the implementation of national insurance use retreats to August 1, 2018.

    Carmelita said the delay made national shipping companies have time to finalize the roadmap of this provision. “We consider the policy of the Ministry of Trade is a win win solution in order to maintain the stability of our exports,” he said in Jakarta, Thursday (26/4/2018).

    Darmansyah Tanamas, Vice Chairman III of DPP INSA said the regulation on the obligation to use Indonesian-flagged vessels for certain exports provides a market opportunity for national shipping. However, on the other hand it is also a challenge to consider the needs of large vessels.

    Previously, the Ministry of Trade has facilitated related business actors, such as INSA, the Indonesian Coal Enterpreneurs Association (APBI), and Indonesian Palm Oil Entrepreneurs Association (GAPKI), to jointly develop a roadmap covering cargo volume of export commodities, export destination countries, , size, and number of ships prepared for export activities are not disturbed.

    According to Darmansyah, the delay of making a national voyage can prepare the vessel in accordance with the needs of cargo. He asserted, the application of the use of national sea transport requires the support of all parties, both from the government and from other related business associations.

    “The support of all parties is urgently needed, so that this provision will no longer be delayed and will soon have a positive impact on our national interests,” he explained.

    As is known, PM 82/2017 appears to address the balance of services deficit, which is largely contributed by the marine transportation sector. Based on Bank Indonesia’s report, in quarter IV / 2017 for example, freight payment reached US $ 2 billion of total service balance deficit of US $ 2.3 billion.

    The deficit arises because the share of overseas transport is dominated by foreign shipping. Data from the Ministry of Transportation, in 2016 the share of foreign-controlled foreign freight reached 93% or 976.20 million tons. On the other hand, national shipping only enjoys a share of 67.23 million tons.

    ———
    Sources: http://industri.bisnis.com/read/20180426/98/788946/wajib-kapal-nasional-untuk-ekspor-ditunda-ke-2020-begini-respons-insa
    Translated by Aryaputra PandeBIC

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