Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Cabotage more than doubles Indonesian-flagged fleet

Cabotage more than doubles Indonesian-flagged fleet
Indonesia's cabotage policy has been a success, according to officials as the number of locally flagged vessels doubled from 6,041 in 2005 when the policy was implemented to 12,536 as at July.

Local media cited Indonesian National Shipowners Association (INSA) data as showing the good growth and quoted Insa chairman Carmelita Hartoto as saying: “The number of Indonesian-flagged ships has doubled to over 12,000 ships, which means that this policy has benefited local players and has increased investment in the country’s shipping industry."

“This has encouraged old players to expand and new players to enter the industry,” she added. Carmelita said this has resulted in more than 1,000 new players entering the shipping sector over the past seven years.

As a result of the increased number of vessels capacity has also more than tripled from 5.67m gt in 2005 to 17.89m gt during the same period.

However Carmelita said that foreign companies are continuing efforts to lobby the government in hopes of re-entering some areas. She added that the government should remain firm on maintaining its policy since the principles had successfully boosted Indonesia's shipping industry.

"I can assure you that we will not compromise with any party who attempts to loosen the cabotage principles for their benefit,” the Transportation Ministry’s sea transportation director general, Bobby Mamahit was quoted as saying.

Malaysian-based Nam Cheong is the latest among many foreign companies keen to get in on the lucrative OSV market in Indonesia.