Following pressure from various stakeholders, the Indonesian government has revoked Ministry of Trade Regulation No. 82/ on the. Indonesia is an archipelago country comprises more than islands. It is located in the crossroad between the Asia and Australia continent and between. Cabotage in Indonesia. Cabotage in South-East Asia. Laws to restrict the operation of ships between South-East Asian ports were introduced to promote.
|Published (Last):||27 December 2009|
|PDF File Size:||17.17 Mb|
|ePub File Size:||10.52 Mb|
|Price:||Free* [*Free Regsitration Required]|
Conclusion It remains to be seen whether the Indonesian Government will extend the exemption for foreign-flagged vessels beyond Regulation 82 had already been amended in April to postpone the implementation date from 1 May to 1 Augustfor the provisions relating to use of domestic insurance, and to indohesia Mayfor the provisions relating to use of domestic vessels.
Attachment I to PM lists foreign-flagged vessels that can conduct drilling activities in Indonesia up to the end of December Cabotage policies are particularly significant for the oil and gas industry especially where the oil and gas fields are located offshore but still within a country’s territorial waters.
Industry players did not view indonexia amendments as going far enough to clarify certain ambiguities in Regulation 82 or to address the risks to the import and export cbaotage posed by the requirements.
It is also a requirement that all vessels operating in Indonesian waters to observe the Cabotage principles whether or not they are engaged in domestic sea transportation activities.
PM changes the time period and process for the application for and issuance of an IPKA, and the supporting documents that must be submitted with the IPKA application. These provisions are broadly interpreted to cover most vessels, including different types of vessels operating in Indonesian waters that are not engaged in domestic sea transportation. As long as Indonesian-flagged vessels are not yet available for specific activities such as oil and gas drilling, however, it is likely that the Indonesian Government will extend the exemption.
Following pressure from various stakeholders, the Indonesian government has revoked Ministry of Trade Regulation No. When the rules were first introduced, oil and gas companies did not see a threat as they expected the Rules to apply only to passengers and goods. Under PMspecific types of foreign-flagged vessels operated in Indonesian waters for specific types of activities may be exempted from cabotage rules. Cabotage principles were implemented when the domestic shipping industry in Indonesia almost collapsed as a result of foreign vessels engaging in coastwise transportation.
Register now for your free, tailored, daily legal newsfeed service. See more Legal Updates. However the Indonesian government later changed the rules to bring oil and gas companies activities under the law. It was done to encourage Indonesia’s shipbuilding industry to grow and protect member of companies of the Indonesian Shipowners Association.
Cabotage and its impact in Indonesia : Clyde & Co (en)
The impact of the enactment of Maritime Law No 17 of also required Indonesi shipping companies with foreign shareholders to own at least one self-propelled vessel of more than gross tonnage. Widespread concern remained that the Indonesian shipping industry and insurance market was not in a position to service the demands which would be created by Regulation 82, in particular that the insurance products on offer would not be acceptable to global importers and exporters and that there would not be enough capacity in domestic vessels.
SSEK – 12th may The implementation of the Cabotage restrictions also paved the way for liberalization of port management and private sector participation indpnesia port development. Under the previous regulation, the time period for cabotae MOT to invonesia the permit was indonedia working days. The MOT shall approve the use of such vessels in Indonesian waters after taking into account the following:. The Indonesian government implemented the Cabotage restrictions and Indonesia’s shipping and offshore marine industry underwent major changes since the introduction of the Maritime Law No 17 of which was aimed at providing business opportunities and greater market share to Indonesian companies.
Cabotage is the principle regulating shipping activities which takes place within a country’s waters and recognises that a country is entitled to restrict the activities of foreign vessels operating within its waters.
It remains to be seen whether the Indonesian Government will extend the exemption for foreign-flagged vessels beyond The Panel has recommended the abolition…. Please contact customerservices lexology.
The first deadline was December for two types of offshore support vessels: With the implementation of the Cabotage rules, the Indonesian shipbuilding industry is now able to construct 19 types of offshore vessels with its growing local expertise. It appears that Indonesia has recognised that further developments in both the shipping and insurance market will be required before the import and export industry of the targeted commodities can rely solely on domestic capability without having a negative economic impact on indoonesia and profits.
Indonesia pulls cabotage rule on key commodities transport
Insight Cabotage and its impact in Indonesia. The MOT shall approve the use of such vessels in Indonesian waters after taking into account the following: This is a shorter time period than under the previous regulation, which allowed for the submission of an application at the latest 14 working days before operation of the vessel. More changes to the coastal shipping regime in Australia.
Under PMan IPKA is granted for a maximum period of one year and may be extended with a recommendation from the Evaluation Team, if the applicant has exhausted all efforts concerning the procurement of an Indonesian-flagged vessel and provides proof of its latest procurement or tender offer. Exemptions for oil and gas survey vessels, offshore constructions vessels, dredging, salvaging and underwater works expired in December In Decemberthe current exemptions for jackups, semisubmersibles, deepwater drill ships, tender-assist and swamp bridge rigs will also expire.
With respect to the prioritisation of foreign-flagged vessels funded by financing companies, PM only requires a subsidiary of an Indonesian legal entity borrowing the money from a financing company to have a majority of its shares owned by Indonesians.
Cabotage Exemptions Under PMspecific types of foreign-flagged vessels operated in Indonesian waters for specific types of activities may be exempted from cabotage rules. Follow Please login to follow content.
If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries lexology. Indonesia June 13 Cabotave Indonesian Shipping Law and its implementing regulations contain Indonesia’s cabotage rules, requiring that domestic sea transportation be carried out by an Indonesian shipping company using an Indonesian-flagged vessel and an Indonesian crew.
Share Facebook Twitter Linked In.