SKK Migas demands for revision of cabotage ruling

By Godang Sitompul

Rudi Rubiandini, Chairman of upstream authority SKK Migas, called for a revision of the Minister of Transportation Regulation No 48/2011 on the cabotage principle.

He told reporters on Monday that the issue has been proposed to President Susilo Bambang Yudhoyono.

Rudi did not say the reason for the need to revise the regulation on the cabotage principle, which bans foreign-flagged vessels from operating in Indonesian waters.

But SKK Migas has previously expressed concerns that the cabotage principle would undermine the country?s oil and gas production because offshore drilling facilities such as rigs are considered as vessels, which means that under the cabotage ruling it must be Indonesian-flagged.

Amid tight supply for rigs, the oil and gas authority has requested for the offshore oil and gas drilling vessels to be exempted from the cabotage ruling.

Editing by Reiner Simanjuntak