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Return to IMO poses challenges, opportunities for Indonesia

Indonesia’s reelection to the Council of the International Maritime Organization (IMO) over the weekend may come as a small victory for the nation’s maritime ambitions, but experts have warned that it should be complemented by a robust local industry, especially amid a slowdown in global maritime trade growth

Dian Septiari (The Jakarta Post)
Jakarta
Tue, December 3, 2019

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Return to IMO poses challenges, opportunities for Indonesia

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span>Indonesia’s reelection to the Council of the International Maritime Organization (IMO) over the weekend may come as a small victory for the nation’s maritime ambitions, but experts have warned that it should be complemented by a robust local industry, especially amid a slowdown in global maritime trade growth.

At the IMO biennial Assembly session in London last week, Indonesia scored a double win by being reelected to the global maritime body’s Category C council for the 2020-2021 term, while the nation’s Supreme Audit Agency (BPK) won the nomination to become the IMO’s external auditor for three years beginning next year.

Transportation Minister Budi Karya Sumadi said that Indonesia had secured 39 votes out of 165 countries involved in the election of the council members in Category C, which would allow the nation to take part in the IMO’s decision-making process.

Category C comprises 20 countries with special interests in maritime transport or navigation and whose election ensures the representation of all of the world’s major geographic areas.

Febrian Ruddyard, the Foreign Ministry’s multilateral cooperation director general, said a return to the council meant Indonesia could be more involved in developing the norms and regulations of shipping trade and safety at sea.

“Although we are not a dominant country in the shipping sector, we have a large maritime area and we have our archipelagic sea lanes [ALKI], through which a lot of international sea trade passes. Of course we have an interest there in shipping safety and security issues,” he said on Monday.

Indonesia’s Ambassador to the United Kingdom, Ireland and the IMO, Rizal Sukma, announced that the BPK had become the first Southeast Asian agency to be named an external auditor for the IMO. BPK officials have said the task would add experience and help upgrade expertise at the agency, which in turn will benefit the local maritime industry.

The announcements carry significant weight for Jakarta to make good on its maritime ambitions, with Rizal saying it would strengthen the nation’s resolve in becoming a Global Maritime Fulcrum.

However, in order to get the most out of these opportunities, Indonesia must continue to develop its domestic maritime industry, said Siswanto Rusdi, director of the National Maritime Institute (NAMARIN).

“We are in the same class as Singapore and Malaysia, but they have a robust maritime industry, enabling them to benefit more from their membership of the IMO Council,” Siswanto said.

He also said it was important for Indonesia to develop its ports and shipping businesses to overcome a lack of quality equipment and expertise. “Maybe the bigger ports are well off, but the smaller ports that are visited by foreign ships [are not] — these ports are second-class, with limited equipment and human resources, even though we exports millions of tons."

For most observers, Indonesia’s reelection to the IMO Council may not come as a surprise. From its entry into the United Nations maritime body in 1961, the country was a constant presence in the council between 1973 and 2019, with the exception of the period between 1980 and 1982.

"Category C is also a reflection of geographical area," Foreign Minister Retno Marsudi said. "So, it is not strange if Indonesia is there because we are a maritime country."

There are two other categories of membership in the IMO Council, with Category A consisting of 10 countries representing the largest international commercial shipping fleets and the largest international sea transport providers. Category B, on the other hand, consists of 10 countries that represent the greatest interest in international seaborne trade.

“This is a sort of compromise after a negotiation of the previous system. Previously, [Council membership] was based on tonnage, but it was unfair because only countries with large tonnage could influence [the norms] or become members of the IMO,” Siswanto said.

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