INSA Set To See 20 Pct Growth In Shipping Industry

Jakarta, Dec 10 (ANTARA) - Indonesian National Ship Owners Association (INSA) said it targets a strong growth in the country`s shipping industry next year boosted by growing demand for cargo transport service. In 2013, the number of Indonesian ships is expected to increase 20 percent with growing demand for sea transport including offshore services, INSA chairperson Carmelita Hartoto said. This year demand for new ships is estimated to reach 541 units lower than 1,000 units last year, Carmelita said here on Monday. She said demand is high for cargo ships especially for coal transport, adding, currently, there are 12,600 units of ship in operation in the country. Every two years around 6,000 units of the ships need refurbishment, she said. She noted seeing the prospects of business in sea transport in the country, many foreign investors have expressed interest in building shipyards in the country. She said Indonesian industrialists ask the government to impose restriction limiting the share of foreign investors up to 51 percent in shipbuilding industry. The government has to be consistent in implementing the cabotage principle , which bans foreign ships from carrying domestic cargoes and government imports. The country suffers a potential loss of Rp241 trillion a year as tax is not imposed on many foreign ships carrying exports and imports, she said. "Potential loss in foreign exchange as many foreign ships are not imposed with value added tax of 10 percent as slapped on Indonesian ships carrying exports and imports," she said.