Budi: cabotage should not worry investors

Dwelling time must be improved in a month
Dwelling time must be improved in a month
Ministry of Transportation will revise a number of rules considered as barriers for investors in order to create a conducive investment climate. This relaxation is expected to gain investment up to Rp40 trillion from 12 projects offered to investors.

JAKARTA (infologistic): Minister of Transportation Budi Karya Sumadi said the government is now intensively attracting foreign investment in various sectors, including transportation infrastructure.

Moreover, Indonesia’s economic fundamentals are considered very promising for foreign investors. Even so with an investment grade rating of three rating agencies should be used to invite investors.

Budi Karya emphasized that the current regulatory problem can often be overcome by revising a number of rules.

“The Ministerial Regulation is not a Koran or a Gospel, it can still be changed as long as it is relevant and governance,” he explained in Jakarta on Monday (25/09/2017) as quoted by Bisnis.com as saying.

He explained that Kemenhub (MoT) will offer 12 infrastructure projects of transportation to a number of investors in the Asia Europe Meeting / ASEM Transport Ministers Meeting in Bali which begins today (26/9) until 28 September 2017.

The meeting will be attended by delegates from 39 countries and transport ministers from 18 countries.

Budi Karya said the 12 projects offered include ports, trains and airports. The profile of each project is packed in detail in a publication book. Kemenhub has also appointed four financial companies that will become financial advisors for each project.

Some projects according to Budi also have received interest. He described, the Port of Tanjung has ogled China and the Netherlands.

Investors from the United Arab Emirates are also called attracted to invest in Makassar New Port project. He revealed, Dubai Port World is even in the finalization stage to invest in Kuala Tanjung.

Meanwhile, Kalibaru Port Project or New Priok has attracted investors from Europe, China and Japan. Budi Karya mentions, South Korean investors are also smitten to work on fire fire project Makassar – Pare Pare.

On the other hand, despite being open to foreign investment, Budi Karya emphasizes that it will continue to apply the cabotage principle consistently.

“Our requirement to apply cabotage does not need to make investors afraid or run away,” he said.

Previously, the Indonesian National Shipowners Association (INSA) feared the government’s intention to boost foreign investment by revising the negative list of investments (DNI) would threaten the sovereignty of the cabotage principle.

Foreign investment is too dominant feared could undermine the role of business actors in the country.

For information, cabotage is an entry barrier or common entry barrier that is applied in some countries in the maritime sector.

Cabotage principle requires that domestic sea transport shall be held by domestic companies, fleets and crew. (ac)

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