CABOTAGE INDONESIA PDF

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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.

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Login Register Follow on Twitter Search. Insight Cabotage and cabotahe impact in Indonesia. The impact of the enactment of Maritime Law No 17 of also required Indonesian shipping companies with foreign shareholders to own at least one self-propelled vessel of more than gross tonnage. 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.

Indohesia implementation of the Cabotage restrictions also paved the way for liberalization of port management and private sector participation in port development. 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 cabotgae be enough capacity in domestic vessels.

Indonesian Government revokes controversial cabotage legislation

If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries lexology. 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.

It was done to encourage Indonesia’s shipbuilding industry to grow and protect member of companies of the Indonesian Shipowners Association.

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.

This is a shorter time period than under the previous regulation, which allowed for the submission of an application at the latest 14 ihdonesia days before operation of the vessel.

Cabotage and its impact in Indonesia : Clyde & Co (en)

Cabotage is the principle regulating shipping activities which cabotafe place within a country’s waters and recognises that a country is entitled to restrict the activities of foreign vessels operating within its waters. Cabotage principles were implemented when the domestic shipping industry in Indonesia almost collapsed as a result of foreign vessels engaging in coastwise transportation.

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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. More changes to the coastal shipping regime in Australia. 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 Caabotage.

My saved default Read later Folders shared with you. This policy clearly has had success in encouraging the development of the Indonesian shipbuilding industry but what remain to be seen are the capabilities of Indonesia’s shipbuilding industry after December 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 caboage business canotage and greater market share to Indonesian companies.

Under the previous regulation, the time period for the MOT to issue the permit was five working days.

The Indonesian amendment to its Cabotage principles is seen and can be interpreted as indonesi measured strategy; one which is flexible enough to allow for a relaxation in deadline if domestic supply of offshore vessels fall short and yet strict enough to cease exemptions when the local industry has improved idonesia its production capabilities.

Following pressure from various stakeholders, the Indonesian government has revoked Ministry of Trade Regulation No. Follow Please login to follow content. Conclusion It remains to be seen whether the Indonesian Government will extend the exemption for foreign-flagged vessels beyond 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 trade and profits.

Under PMan IPKA is granted for a maximum period of one year and may cabotagd extended with a recommendation from the Evaluation Team, if the applicant has exhausted cqbotage efforts concerning the procurement of an Indonesian-flagged vessel and provides proof of its latest procurement or tender offer.

Shipping Norway Italy Spain View more. With the lack of Indonesian vessels capable of servicing the needs of the oil and gas sectors, exemption tables were created in in order to avert production losses.

PM changes the time period and process for the application for and issuance of an IPKA, indonexia the supporting documents that must be submitted with the IPKA application. The first deadline was December for two types of offshore support vessels: See indonesiia Legal Updates. Share Facebook Twitter Linked In. Industry players did not view the amendments as going far enough to clarify certain ambiguities in Regulation 82 or to address the risks to the import and export industry posed by the requirements.

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The MOT shall approve the use of such vessels in Indonesian waters after taking into account the following: The next deadline was December for offshore construction vessels and dredging vessels.

Under PMspecific types of foreign-flagged vessels operated in Indonesian waters for specific types of activities may be exempted from cabotage cabotafe. Exemptions for oil and gas inndonesia 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.

The Panel has recommended the abolition…. Register now for your free, tailored, daily legal newsfeed service. It remains to be seen whether the Indonesian Government will extend the exemption for foreign-flagged vessels beyond SSEK – 12th may 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 cahotage, and to 1 Mayfor the provisions relating to use of domestic vessels.

Please contact customerservices inddonesia. As long as Indonesian-flagged vessels are not yet available for specific activities cabotags as oil and gas drilling, however, it is likely that the Indonesian Government will extend the exemption.

Indonesia June 13 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. Holding parties to their bargain: Such possibility for extension did not exist under the previous regulation.

Indonesia Extends Cabotage Exemption

The MOT shall approve the use of such vessels in Indonesian waters after taking into account the following:. Article 8 of the Maritime Law No 17 of sets out the following principles: Attachment I to PM lists foreign-flagged vessels that can conduct drilling activities in Indonesia up indonesiq the end of December The 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.

Cabotage Exemptions Under PMspecific types of foreign-flagged vessels operated in Indonesian waters for specific types of activities may be exempted from cabotage rules.