Shipping firm denies illegal operations

The Jakarta Post ,  Jakarta   |  Sat, 03/08/2008 12:42 AM  |  Headlines

A national shipping company has denied accusations it was operating illegally in Indonesian maritime boundaries.

PT Bumi Laut also denied it violated a 2005 presidential decree and other laws, lawyers for the company said in a statement.

The statement formally complained about an article published on March 3 by The Jakarta Post which called for government action against foreign-flagged vessels operating illegally in the country.

The report quoted the Indonesian Transport Workers Federation (ITF) and the Indonesian Seafarers Union as saying illegal operations had caused losses to the state because the vessels evaded paying taxes to the government.

"The fallacious and misleading report has blemished our client's image and has cost it material and non-material damages. It carried groundless allegations, fabrications, intimidation and motives of extortion," said the statement.

Dated March 4, 2008, the statement was signed by Andy Syam Panaungi and Agus Susanto from ASP & Partners law firm.

The lawyers said the 2005 presidential decree did not ban foreign ships from operating as domestic carriers within Indonesia's maritime boundaries.

The decree gave Indonesian companies until Jan. 1, 2010, to stop using foreign ships, particularly tankers, as their domestic carriers, they said.

"Therefore it is legal for Indonesian shipping companies to operate foreign-flagged vessels until Jan. 1, 2010, in Indonesian waters," said the statement.

The lawyers said it was not true Jakarta-based PT Bumi Laut did not pay the salary of Myanmarese seafarer Kyaw Htin, who worked for Panama-flagged oil tanker MT Julia-I.

They challenged Htin and others to go to court if they felt they had been treated unfairly by the company.

"Our client is a national shipping company owned by an honest national businessman, not a foreign party.

"Vessels operated by our client still sail in international waters without problem and contribute to the promotion of Indonesia's name in the eyes of the international maritime world," the statement said.

"Our client has been operating for decades and has always maintained good quality and professional management standards. Any negative accusations against our client are illogical and contain a motive of extortion."

The lawyers accused ITF and the Indonesian Seafarers Union of tarnishing the image of Bumi Laut and its owner, Jaka Aryadipa Singgih, who is a lawmaker with the Indonesian Democratic Party of Struggle (PDI-P).

They said they did not know Hanafi Rustandi, who is the union leader and also coordinator of Indonesia's ITF.

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