INSA, SOE Ministry to boost loads of local shipping vessels

The Indonesian Ship Owners Association (INSA) has teamed up with the State Minister of State-Owned Enterprises (SOE) to form a task force in a bid to accelerate the implementation of the so-called beyond cabotage policy, Bisnis Indonesia reported Thursday.

INSA Chairwoman Carmelita Hartoto said that the country is estimated to suffer some Rp 240 billion in foreign exchange losses annually as many of the country?s export and import cargoes are transported via foreign-flag vessels.

Last year, out of the country?s export and import cargo volume of 577 million tons, only 9.1 percent were transported by Indonesian-flag vessels, while the remaining bulk of 91.9 percent were shipped by foreign-flag vessels.

About 20-30 percent of export and import activities are carried out by SOEs, Carmelita said. It is expected that with the agreement with the SOE Ministry, the SOEs will lead the campaign in accelerating the beyond cabotage policy, which encourages the use of local vessels to carry export and import cargoes. (*)