Friday, 26 January 2018 00:00

Government obliges exporters and importers to use national shipping company

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Indonesian Ministry of Trade requires exporters and importers to use ships owned by Indonesian national shipping companies in their trading activities. Director General of Foreign Trade at the Ministry of Trade, Oke Nurwan said that Indonesia has not optimally maximized the potential in the field of shipping and trade insurance services. he explained in Jakarta on Thursday, (January 25th) that the use of national ships for the movement of domestic goods has been 95 percent. However, for international shipping, the number is still very small. Therefore, the government requires exporters and importers to use national shipping through Regulation of the Minister of Trade No. 82/2017 on Terms of Use of Sea Transport and National Insurance for Export and Import of Certain Goods. He also said that the policy is part of the package of 15th economic policy.  Oke said “…Because, there is no trigger if we do not intervene. Well, with 82nd ministerial regulation, we have a mandatory trigger. Well… later, we will arrange the exceptions”. 

Oke further explained that so far, exporters and importers have been in favor to use foreign shipping companies. Since, they are easier in terms of bureaucracy. Thus, the government will invite national shipping companies, insurance companies and exporters and importers to meet and discuss the issues. In the first phase, Oke targets that to export coal and crude palm oil -CPO is obliged to use national shipping services, and then other commodities will follow. This policy will take effect from 1st of May 2018. (Sekar/trans by Rezha)

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