MoT revises regulation on use of foreign-flagged vessels

By Bernard Loebs

The Ministry of Transportation (MoT) is expected to soon complete the revision of minister Regulation No 10/2014 on the mechanism and requirements for permit in the use of foreign-flagged vessels.

Baris Sitorus, Head of Operation Control Division at upstream oil and gas authority SKK Migas, said that the regulatory body has requested from the ministry a dispensation for the use of foreign-flagged seismic vessels in 2015 to support offshore oil and gas activities in the country.

While the Minister of Transportation regulation bans the use of foreign-flagged vessels starting next year as part of the government cabotage policy, which requires the use of domestic ?flagged vessels in the country, foreign vessels for certain purposes such as to support offshore oil and gas activities including seismic vessels are still needed given the very limited number of domestic-flagged vessels, Baris explained. He pointed out for example that according to the Indonesian Ship Owners Association (INSA), there are currently only two Indonesian-flagged seismic vessels.

?That?s why we have proposed for a dispensation from the cabotage policy for seismic vessels,? he said.

Meanwhile, Bisnis Indonesia quoted Director General of Seat Transportation at MoT Bobby R. Mamahit as saying Thursday that the revision of the aforementioned regulation is expected to be completed soon as the ministry will only have to hold final discussion with national shipping industry players grouped in INSA.

Editing by Reiner Simanjuntak