Ministers agree on draft regulation on foreign-flagged ships

The government has completed a draft regulation that allows the operation of C-type foreign-flagged vessels in the Indonesian waters, which is expected to be signed by President Susilo Bambang Yudhoyono in Aril, oil and gas authority BPMIGAS said on Tuesday.

BPMIGAS' chairman R. Priyono said the draft regulation has been agreed upon by all related ministers, including the minister of transportation, minister of law and human rights, ministry of energy and mineral resources and cabinet secretary.

"It is expected to be signed by the president before April 7 or at least one month before the cabotage policy takes effect," Priyono said.

Under the cabotage policy, which will take effect on May 7, this year, only Indonesian-flagged vessels will be allowed to carry goods or passengers between two points in Indonesia.

Under the draft regulation, foreign-flagged vessels of C type can still operate in Indonesia as long as none of the type with Indonesian flag is available. (Bernard)