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Jakarta Post

Beyond Indonesian cabotage policies: Quo vadis?

  • Ibrahim Kholilul Rohman and Harya S. Dillon


Jakarta   /   Mon, May 4, 2020   /  11:51 am
Beyond Indonesian cabotage policies: Quo vadis? Time to dwell: A vessel anchors at Tanjung Priok container terminal in North Jakarta in November 2019. Based on a recent trade ministerial decree amendment, the cabotage policy which has been in place since 2009 now applies to ships with a capacity of 15,000 deadweight tonnage. (JP/Dhoni Setiawan)

As we scramble to contain the COVID-19 pandemic, the Indonesian shipping industry is facing a moment of truth with regard to the implementation of the “beyond cabotage” regulation. Cabotage laws insulate the domestic shipping industry from foreign competition to achieve safety, security and economic goals.

Indonesia is not alone in giving certain privileges to domestic shippers, shipbuilders and sailors. In the United States, The Jones Act of 1920 requires that all waterborne logistics between US ports be carried by ships flying the US flag, constructed in the US, owned by US citizens and crewed by US citizens or permanent residents. The Tariff and Customs Code of the Philippines (1937) made clear that all domestic transportation of goods and passengers follow cabotage principles; shippers must secure a coastwise license from the Maritime Industry Authority.

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.