ASAS CABOTAGE PDF

Commitment to implement cabotage principle has been initiated bij Presidential Instmction No. Its grawth is also supported biJ a number of foreign classifications which also operate in Indonesia. Activities of ship classifications are to register and collect physical and tedmical of ship, ownership and flag entitle to fly in order to promote safehJ and seaworthiness aspects. But t11e problem that still appeared is less confident anwng ship-owners and insurance to tl7e result of national classification.

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Not only that, the ships should also owned and operated by a citizen or a business entity formed under the laws of local Countries. In fact, the majority of share ownership at least 51 percent also have to be in the hands of companies from those countries.

In other words, the application of this principle means it giving the right transportation company from Indonesia operates commercial exclusively. The figure increased by as much as 7. Increase in the number of national commercial fleet that also have an impact on the increase in installed capacity. Recorded flagged ship installed capacity reached Foreign ships seized Conditions that cause Indonesia to lose the economic potential of fare to transport hundreds of trillions of rupiah every year.

For instance, goods shipping rates on ocean freight domestic before the principle of cabotage is much more expensive than now. The same condition also occurs on other routes such as shipping crates to Jayapura, Sulawesi, and so on.

Decrease cost of ocean freight is not because it is driven by the decreasing rate in port or harbour, but increased productivity due to increased trading volume so that triggered the evolution of the use of the ship to a bigger one. Thus the implementation of the principle of cabotage is not solely related to economic protectionism or economic problems but is concerned the issue of State sovereignty.

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Not only that, the ships should also owned and operated by a citizen or a business entity formed under the laws of local Countries. In fact, the majority of share ownership at least 51 percent also have to be in the hands of companies from those countries. In other words, the application of this principle means it giving the right transportation company from Indonesia operates commercial exclusively. The figure increased by as much as 7. Increase in the number of national commercial fleet that also have an impact on the increase in installed capacity. Recorded flagged ship installed capacity reached

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Hence the rules and regulations are required to support the national shipping industry to be more effective, and to gives more certainty in business. Latest Additions View items added to the repository in the past week. Cabotage, Pelcrvaran Dornestik, Perdagangan Rebus. The Benefits for Cabotafe as an archipelagic country, should gives all national potential modalities in economic activity and development in order to increase national production and increase national income, but it is unfortunate that the willingness and seriousness of the government is only half-hearted in the implementation of cabotage principle, since there are rules and regulation that allowed vessel which has not yet been registered as Indonesian flag, by providing dispensation or policy to use the foreign flag in Indonesian waters with political interests considerations. Its ultimate origin is uncertain.

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