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Maersk tries to push into Indonesian domestic shipping

Maersk tries to push into Indonesian domestic shipping
Liner giant Maersk Line may try to push the limits in Indonesia, leveraging on the current positive environment to improve the logistics sector, with plans announced to invest $3bn over the next five years in expanding its logistics business in the country.

Indonesia's cabotage shipping law could prove a stumbling block but the issue has drawn the attention of State-Owned Enterprise Minister Rini Soemarno, local reports said.

"[Maersk] expressed interest to transports goods within our territory, in order to reduce logistics costs," Rini said. "But they stumbled upon our shipping law that requires majority shareholders to be locals. They wanted to be the majority.

"Maersk has been involved in the international shipping business in Indonesia since 1958 and now sees huge potential in domestic shipping. However, local laws permit only domestically-controlled shipping firms and local ships with local crews in the domestic trade.The Indonesian government is now revising its list of businesses open to foreign investment  control but Rini did not say if the shipping sector would be liberalised.