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Indonesian shipowners not ready for Asean EC: INSA

Indonesian shipowners not ready for Asean EC: INSA
Indonesia's national shipping players have conceded that they will not be ready to compete in the regional free-trade market when the ASEAN Economic Community (AEC) is implemented in 2015, local reports said.

Indonesian National Shipowners Association (INSA) chairman Carmelita Hartoto was quoted as saying: "We will not be ready until the government implements pro-shipping transportation policies. The AEC is going to be hard for us."

Carmelita dragged out a familiar list of requests that the government had yet to address such as cutting value added tax (VAT) on loading and unloading services, and providing enough fiscal incentives to develop the country's maritime industry.

She added that the biggest threat to the industry came from state-owned port operator PT Pelabuhan Indonesia II (Pelindo II), which continued to establish subsidiaries offering port-based services. "This has made competition between the private sector and state-run companies tougher," Carmelita said.

Carmelita claimed that Pelindo II had enjoyed relatively smooth passage in developing its business, in contrast to privately-owned firms, adding that Pelindo II was also seeking to make a profit, despite being a state-run company.

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