TRANSPORTATION MINISTER AGAINST LIMITING IMPORTED SHIPS' AGE TO 15 YEARS

Jakarta, May 21 (ANTARA) - Transportation Minister Jusman Syafii Djamal has expressed disapproval of an industry ministry plan to gradually ban the importation of used ships older than 15 years starting in 2010.

"We intend to adhere to the cabotage principle starting in 2011, don't we? Domestic industries must take maximum advantage of this but not by limiting the age of importable ships," the minister told the press after officiating at the opening of the Lion Village Facility of Lion Air, the largest private airline company in the country, in the industrial zone of Mas Cengkareng airport in Banten province on Wednesday.

The minister was responding to a statement by the industry ministry's director general of transportation and telematic means industries, Budi Dharmadi, that the government would limit the age of imported used ships to 15 years starting in 2011.
So far, the government was still allowing the importation of used ships that were as old as 25 years.

Djamal said the most important thing now was ensuring the safety and security of imported ships because in the domestic shipping industry there were now docking and routine maintenance systems.

"So what we now meant is the proper implementation of the cabotage principle . If the age limit of imported used ships is set a 15 years, it means we will not be having the ships as programmed," he said.

Djamal said until now he had not received any request from the industry ministry to familiarize transportation ministry personnel with the plan to impose the 15-years age limit on imported used vessels. .

"But I have talked with Industry Minister Fahmi Idris and hope they will reconsider their plan so that the transportation ministry can implement the cabotage principle," he said.

Furthermore, he said, the most important thing was actually the development of shipping companies. "If shipping companies grow, shipping-related industries like dock-yards will also develop. If dock yard industries grow fast enough in the next two years, they will be able to meet the need for ships before the cabotage principles is carried out," he said.

Earlier, the chairman of the Indonesian Shipowners' Association (INSA), Johnson W. Sutjipto, had also rejected the industry ministry's plan to set the limit of the age of importable used ships at 15 years.
"The government should keep the age limit of importable used ships at 25 years as has been the case until now," Sutjipto said.. The 25-years limit should be maintained until the entire process to implement the cabotage principle was completed in accordance with the demand of the dock-yard industry for government protection to reach maximum production levels.

According to Trade Ministry data, the value of imported ships during the past three years has been on a rising trend. In 2005 , the figure was US$463.3 million s, in 2007 US$ 643 million and in 2008 US$687.6 million.