Permendag 82 to apply gradually on domestic capacity

Dwelling time must be improved in a month
Dwelling time must be improved in a month

The Government ensures the application of the Minister of Home Affairs Regulation No. 82 of 2017 (Permendag 82) on Terms of Use of Sea Transport and National Insurance for Export and Import of Certain Goods done gradually.

JAKARTA (infolog); Minister of Transportation Budi Karya Sumadi said the implementation will be phased, and will not disturb the national exports.

“We have another spirit [to change the use of foreign ships in international trade], but our export activities keep and do not get disturbed,” he said in Jakarta, Wednesday (21/2/2018) as quoted by as saying.

He said the goal of the Permendag is to support Indonesia’s shipping sector. Facts on the ground even many foreign ships dominate.

To support the implementation of the government program, Indonesia’s shipping sector is strong enough to answer it.

“It’s just the shipping industry for small and medium scale only, if it’s big yet,” he said.

Regarding the budget for the procurement of vessels later, Budi said, it still has not calculated in detail it, and it needs to talk with kemeterian related.

Based on Business records, currently exported dominantly exported foreign sea freight with 90% share. The capacity of overseas shipping is only 67.23 million tons in 2016, while foreign shipping reaches 976.20 million tons.

It is expected that with the regulation, the main objective is to enable local entrepreneurs to enjoy the export and import logistics costs of around Rp2,400 trillion per year, which so far most enjoyed by foreign ships can be achieved.

Based on data from BI, transportation services contributed the largest balance of services deficit, mainly due to the payment of freight services of $ 2.0 billion, or higher than the previous quarter of $ 1.7 billion, in line with rising imports of goods. (ac)

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