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INSA bans cargo ships using subsidised fuel

Jakarta: The Indonesian National Shipowners Association (INSA) has reportedly issued an order prohibiting all cargo ships from using subsidized fuels.

Vincent Wee, Hong Kong and South East Asia Correspondent

March 7, 2013

1 Min Read
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This was in support of the government’s efforts to curb consumption of subsidized fuels.

The official prohibition will prevent unwarranted price competition between cargo shippers, according to INSA. Enforcement has proven difficult however as seen in the case of the mining, plantation and forestry sector.

The Energy and Mineral Resources Ministry is targeting savings of 1.3m kilolitres of subsidized fuel this year. Last year, it only managed to save some 350,000 kilolitres, far below the targeted 1.5m kilolitres.

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Indonesia

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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