VIVAnews - The Indonesia National Shipowners Association (INSA) believed that the cabotage principle could add a substantial income potential of the national vessel industry.
According to the chairperson of INSA Johnson W. Sutjipto, the upstream vessels with Indonesian flag covers only 25 percent, while foreign ships reaches 75 percent. Therefore, the total income of foreign companies reaches US$1.12 billion.
"The money that goes to foreign companies extends to US$1.12 billion, and it's a great potential for the national ship industry," said Sutjipto in Jakarta on Wednesday, April 15.
Cabotage principle allows domestic shipping vessels to sail along the coast's islands and domestic ports using a ship which is operated by domestic crews.
The use of national vessels to carry commodities and oil will be due on 2010, while national vessel use for carrying upstream industry's commodity must start in 2011.
Pertamina uses 118 national tanker ship in various types and 16 set of barge ship and tow ship. The state oil company uses 54 foreign vessels with a rent income of US$259.22 million. "It can be diverted to national vessels starting January 1, 2010," he confirmed.
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Translated by: Ariyantri E. Tarman
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