Small OSVs added to Indonesian cabotage

The move is expected to boost Indonesia-flagged ships within the sector and effectively takes smaller foreign-flagged anchor handlers out of the equation.

“AHTS [anchor handling towage supply] vessels are no longer allowed [to be operated by foreign operators],” Director general for sea transportation Bobby Mamahit was quoted as saying.

In addition, foreign dredging ships with a capacity of less than 5,000gt which were previously allowed, will also be disallowed. Under the new regulation, foreign companies are only allowed to operate ships over 5,000gt.

However, due to limited availability, there will still be concessions made for foreign operators to provide other types of offshore vessels including those for drilling and survey.

“By revising the regulation we aim to encourage local shipping companies to provide these vessels to the offshore sector,” Mamahit was quoted as saying. “However, we are still limiting the type of the vessels, so that the regulation will not hamper economic activities,” he said.

Indonesian National Shipowners' Association (INSA) chairperson Carmelita Hartoto said that the revision was a positive response to the improving availability of national-flagged vessels in the offshore sector. “The change is for the better and the association is certain that the number of sophisticated offshore vessels will continue to grow following the issuance of the regulation,” Carmelita said.