CABOTAGE, IMPLEMENTATION & CORRECTIONS NECESSARY.

Capt. Irawan Alwi, MBA, FIIMS, MNI

Seminar Maritim CAAIP, 25 FEBR, 2011

What will we discuss..?

• WHAT /WHY CABOTAGE , MAKHLUK APA INI ....?

• BERHASIL KAH CABOTAGE DGN INPRES NO. 5 DAN UU NO. 17, MENINGKATKAN LOCAL CONTENT ?.....

• WE HAVE TO CHOOSE “OWNERSHIP “OR “FLAGSHIP “ ?

• CABOTAGE KEBERHASILAN SEMU ?

AZAS CABOTAGE.

• Asal kata “CABOTER” = sailing along the coast.

• Trade or navigation in the coastal waters, exclusive right of a Flagstate /country

• ANGKUTAN LAUT MUATAN DARI POINT A KE POINT B DALAM NEGERI HARUS DIANGKUT OLEH KAPAL BENDERA NEGARA YBS.

Legal aspect of cabotage

UU No. 21 tahun 1992 tentang Pelayaran mengatur:

Pasal 46 (2): Indonesia menganut sistem pendaftarantertutupa. Kapal yang didaftar dan mendapat surat tanda

kebangsaan kapal Indonesia berukuran sekurang-kurangnya GRT 20 M3

b. Kapal dimiliki oleh warga negara atau badan hukumIndonesia

Pasal 56 (1): Kapal berbendera Indonesia harus diawaki WargaNegara Indonesia. Pengecualian hanya atas izinPemerintah (ayat 2)

Can we change the rule../ or let Foreigner own our flag under table ?

PENGERTIAN AZAS CABOTAGE

1. Sebagaimana yang dijelaskan dalam UU No. 21 Tahun 1992 tentang Pelayaran :Pasal 73 ayat (1) :“Penyelenggaraan angkutan laut dalam negeri menggunakan kapal berbenderaIndonesia”

2. Pengangkutan muatan angkutan laut antar pelabuhan dalam negeri dengan kapalberbendera nasional negara tersebut (azas cabotage) juga diterapkan oleh negara-negaralain seperti Singapura, Phillipina dan Amerika Serikat; yang mewajibkan muatan angkutanlaut dalam negeri diangkut oleh kapal niaga bendera negara yang bersangkutan.Di Amerika Serikat penerapan azas Cabotage berdasarkan Jones Act 1936, muatanangkutan laut dalam negeri harus diangkut dengan menggunakan kapal-kapal yangdibangun digalangan di Amerika, berbendera Amerika, dimiliki dandiawaki oleh warga negara Amerika (US- crewed).

3. Interisland shipping :adalah pelayaran antar pulau dalam satu negara atau setiap negara menentukan bahwapelayaran antar pulau atau antar pelabuhan dalam satu negara, hanya dapat dilakukanoleh kapal-kapal berbendera dari negara yang bersangkutan (prinsip ini disebutCabotage)

4. Cabotage adalah angkutan laut dalam negeri yang melakukan pelayaran sepanjang pantaiantar pulau dan antar pelabuhan dalam negeri dengan menggunakan kapal-kapal dandiawaki oleh warga negara serta dimiliki oleh warga negara dari negara bendera kapalyang bersangkutan, untuk kepentingan distribusi dan perdagangan antar pulau di dalamsatu negara.

CABOTAGE.

CABOTAGE / USA 1920

• SECURITY APPROACH.

• BUILD & MAINTAIN, CLASSIFICATION

• OWNERSHIP, FLAGSHIP + CREWS

• LOCAL LAW YURISDICTION

CABOTAGE VERSI KITA ?

• ECONOMICAL APPROACH

• IMPORT 2ND HAND

• FOREIGN CAPITAL ?

• MAINTENANCE/ SUPPLY ?

• LOCAL CONTENT ?

INCONSISTENCY CREATE PROBLEMS.

• SCRAPPING POLICY/ SK. MENHUB NO. 57/1984, KAPAL2 USIA DIATAS 20 TAHUN HARUS DI SCRAP.

• DOCKYARDS TDK MAMPU MENGISI RUANG KOSONG, KAPAL ASING MASUK.

• BERAPA USIA KAPAL YG LAYAK..?

• APAKAH ADA ATURAN YG JELAS ?

• Permendag no. 63/2009, batasan usia kapal import max 20 th.

• TOTAL FLEET MARCH 2005 = 6.041 UNIT

• TOTAL FLEET MARCH 2010 = 9.309 UNIT

• GROWTH 2005-2010 = 3.268 UNIT/ 54.1 %

( What type /Size/built/maintenance ..?)

• INVESTMENT VALUE = USD. 32.7 BILLION.

(offshore loan ? )

NEED FURTHER DISCUSSION..

“BISNIS INDONESIA” 29/9/2010

DOMESTIC

FOREIGN

REALIZATION OF CARGO EXPORT 2009

91%

9%

11

0 25 50 75 100 125 150 175

SINGAPORE

TAIWAN

S.KOREA

NORWAY

H.KONG

USA

CHINA PR

GERMANY

JAPAN

GREECE

NATIONAL FLAG

FOREIGN FLAG

ID: 463

TOP TEN RANKING SHIPPING COUNTRIESFLEET OWNERSHIP

MILLION DWT

Source: LMS, Vessels over 1,000 gt

PERTUMBUHAN SEMU .. ?

• VESSELS EX IMPORT

• FOREIGN BUILDS/SECOND HAND

• FOREIGN MAINTENANCE

• FOREIGN LOAN

PERTUMBUHAN SEMU.. ?

• Kapal dibangun di China

• Loan nya dari Malaysia

• Maintenance di Singapore.

• Insurance di London.

• Harus Dual Class ??

• P&I Club, Hull & Machineries, Marine cargo Insurance ?

• Apa yg tinggal buat Merah putih /local content ??

DOCKYARD & INSURANCE ?.

• CAPACITY DOCKYARD KITA FULLY OCCUPIED. 70 % ASING , 30 % LOCAL ORDER.... WHY ??

• Import kapal bekas bebas PPn. Komponen dockyard bayar Ppn. Bagaimana bisa bersaing ?

• NO P & I Club and Hull & Machineries Insurance in Indonesia.

• Marine Cargo Insurance for cargo export ?

SALES CONTRACT...?

• EXPORT MOSTLY FOB BASED.

• IMPORT MOSTLY CIF/CNF BASED.

• WE ARE LOCAL PLAYERS .. ( kandang kita besar ?)

ADAKAH MAFIA KAPAL DI INDUSTRI MIGAS ?

• MAFIA BERAS, MAFIA SEMEN., MAFIA GULA.?

• MAFIA HUKUM / PERADILAN ?

• MAFIA KAPAL IKAN ??

• MAFIA KAPAL TANKERS ??

WHY DON,T WE OPEN IT ?

• RELEASE OWNERSHIP/ MAINTAIN FLAGSHIP.

• BUKANKAH KITA SEDANG MENGGALAKKAN INVESTASI ASING ??

• PRO & CONTRA, VIRUS UBSA.

• REVIEW EVERY 5 YEARS.

LOCAL CONTENTS IN SHIPPING

• 1/SHIP’S DESIGN & SUPERVISION/CLASSIFICATION

• 2/SHIP’S BUILDING/DOCKYARDS

• 3/SHIP’S MAINTENANCE ( DRY DOCKS/ FLOATING REPAIRS)

• 4/ SHIP’S SUPPLIES ( CONSUMABLE, STORES, FUEL, PAINT, PUBLICATION , CHARTS, SPAREPARTS)

• 5/ SHIP’S CREWS ( SALARIES, BONUSES, JAMSOSTEK)

• 6/ MARINE CARGO INSURANCES ( CNF SALES CONTRACT)

• 7/ P & I AND HULL & MACHINERIES

• 8/ TAXES

• 9/ FLAGSHIP

• 10/ OWNERSHIP

• Ternyata Cabotage versi kita hanya focus di no 5 & 9.....!

FLAGSHIP VS. OWNERSHIP

• ADA GULA ADA SEMUT.

• FLAGSHIP AKAN MENINGKATKAN LOCAL CONTENT. (TKDN)

• SHIPS’ DESIGN, BUILD, MAINTAIN, CREWS, CLASS, INSURANCE, SUPPPLIES ALL LOCALLY.

• WE CAN’T HAVE IT ALL AT THE SAME TIME.

• WE MUST CHOOSE “FLAGSHIP” OR “OWNERSHIP”

TRICKLE DOWN EFFECT SHIPPING INDUSTRY....IF WE BUILDS OUR OWN SHIPS.

• PAINT INDUSTRIES

• STEEL INDUSTRIES

• PYROTECHNICS

• HR SUPPLIES.

• PORTS AND TERMINALS

• THE MOST BENEFIT IS TRANSFER OF THECHNOLOGY

Recent Condition of National Sea Transport

.

National Fleets vs. Foreign Fleets 2005/2010 ?

INPRES no. 5/2005

• Signed on 28 March 2005.

• Involving 13 related Minister + Governor, Regent and Mayor (OTDA).

• Been long-awaited.

• Developing National Fleet?

• Cabotage principle?

• Need to follow up seriously.

• UU. NO 17 ......

• JUKLAK PP 20... DST...

We must start with our own cargoes

• Export/Import ex BUMN must use Indonesian Flag.

• Cabotage principle to be applied CONSITENTLY.

• NO COMPROMISE/ ADA GULA ADA SEMUT..

• Focus on cargo in/out from Nusantara/archipelago.

INPRES no. 5/2005 / UU. NO 17/ PP. ..LANJUTAN......Etc..

• Government makes the regulation. Businessman finds the loop hole.

• Money has no Flag and Capital has no Border.

• Indonesian Flags with Foreign Investor. !!!

• Indonesian Crews and tax payable in Indonesia.

NATIONAL FLEET.. MEANS ???

-Ownership or Flag.?? - Panama, Honduras, Beliz,

SINGAPORE etc.

(Flags of Conveniences)

Foreign Flags –

Indonesian Owners

Indonesian Flags –

Foreign Owners.

We are part of

Global system.

Requirements for Indonesian Flags

• Must be possessed by Indonesian Citizen / Indonesian Legal Body

• Local Company / JV 51/49

• Closed Registry ( UU no 21/tahun 1992 psl. 46 & 56)

KEBUTUHAN KAPAL OFFSHORE 2010 to be skipped......

FSO/FPSO

90,0

50,5

100,197,995,6

92,791,489,2

41,445,0

49,0

60,375,0

48,147,344,2

38,043,6

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010

Oil/Petroleum Coal General Cargo

PROYEKSI PERTUMBUHAN 3 KOMODITI DENGAN VOLUME

MUATAN TERBESAR UNTUK ANGKUTAN LAUT DALAM NEGERI

-36-

Juta Ton

TRANSPORTASI MARITIM INDONESIA 37

SUMMARY ofDomestic Shipping Development 2004 -2024

(Source: STRAMINDO)

2002 2014 2024

Traffic Demand Dry Cargo (MT, million) 70.1 129.7 196.1

Liquid Cargo (MT, million) 86.7 113.1 120.4

Passenger (pax, million) 12.5 18.7 18.8

Fleet Tonnage For Dry Cargo (DWT, million) 4.5 7.1 10.1

For Liquid Cargo (DWT,

million)

2.1 2.9 3.0

For Passenger (GT, million) 0.4 0.5 0.7

Total (DWT/GT, million) 7.1 10.5 13.7

Fleet Procurement For Dry Cargo (Rp. trillion) 27.2 49.6

For Liquid Cargo (Rp. trillion) 17.0 19.6

6.1 For Passenger (Rp. trillion) 10.3 6.1

Investment Opportunity Total (Rp. trillion) 54.5 75.3

Containerization Rate (%) 23 37 40

ROAD MAP MERAH PUTIH SEKTOR MIGAS/OFFSHORE.

- CARGO MIGAS BATAS AKHIR 1 JANUARI, 2010

- SUPPORTING VESSEL, BATAS AKHIR 1 JANUARI, 2011 (GROUP B) ???

- GROUP “C “ SD. 7 MEI, 2011 (REFER TO PM73/2010 DAN KM 22 /2010)

- LOCAL BANK LOAN / DOCKYARD CAPACITY RESTRICTED.

- NO LONG TERM CONTRACT.

- SO.. WHAT..? ( long discussion : Pom Bensin, Log carrier case 1980, bank lbh suka beri kredit u/ mall)

HOW MANY FSO/PFSO/TANKERS WE NEED ?

• PERTAMINA

• OPERATES 190 TANKERS

• ONLY 18 IS OWN TANKERS

• 172 CHARTERED TANKERS.

• SUPPORTING VESSELS, GROUP A/B/C ???

• CAN WE ACHIEVED THE DATE LINE JAN OR MEI, 2011 / FOR C GROUP .??

• KKKS

• FSO 14 (9 ASING)

• FPSO 8 ( 6 ASING)

• LPG/LNG TANKERS ??

• SUPPORTING VESSELS, GROUP A/B/C ???

BKI.Biro Klasifikasi Indonesia

NOT IACS MEMBER. :

Less minimum Tonnage

State owned Institution.

No R&D facility...??

Less safety....?

Etc….

Tell succes story IRS/ India.

We must start with our own cargoes /HOW ??

• FOSFA QUALIFICATIONS AND OPERATIONAL PROCEDURES FOR SHIPS

• ENGAGED IN THE CARRIAGE OF OILS AND FATS IN BULK FOR EDIBLE

• AND OLEO-CHEMICAL USE

• A. FOSFA QUALIFICATIONS

• 1. Classification

• 1.1 Ships shall be fully classed by a classification society in membership of the InternationalAssociation of Classification Societies (IASC)

• LPG/LNG ?

• COAL ?

Documents for approval of changing into Indonesian Flag

• Flag changing application

• Bill Of Sale (must be legalized by a notary who witnesses the signing of “Bill of Sale”, or an authorized official from the country of the ship’s origin flag)

• Protocol of Delivery and Acceptance

• Deletion Certificate from the ship’s origin country

• Builder’s Certificate

• Vessel’s Certificates from the ship’s origin country

• Vessel’s general arrangement

INTERNATIONAL REGULATIONS ..?

Indonesia telah meratifikasi Convention on Maritime

Liens and Mortgage 1993 berdasarkan Peraturan

Presiden No. 44 tahun 2005 .

Indonesia belum meratifikasi Convention of Arrest of

Ship 1999, sudah direncanakan sejak 2007, namun

sampai sekarang belum terlaksana.

Untuk mempercepat implementasi dari Convention

on Arrest of Ship maka ketentuan umum tentang

penahanan kapal di atur dalam UU Pelayaran/2008.

Indonesia: a Maritime Country

• +/- 235 Millions people• 17,500 Islands – debateable.

(depends on when you count it – HW or LW)• 5.8 Millions Km2 ZEE• 81,000 KM coast line• ‘Nenek Moyangku seorang pelaut’• Located between 2 Continents

• Maritime industries is a “MUST”

• NOTE : BELUM ADA KEPPRESS TTG JUMLAH PULAU KITA, SEHINGGA KALAU SALAH SEBUT BISA PIDANA.

The facts

• Our Maritime Industry is still very poor

• Foreign Fleets still having big party /EXIM CARGO ?

• Foreign Fishing boats having big party

• GARAM PUN KITA MASIH IMPORT.!!!

• Cabotage PRINCIPAL ?

• No government support..??

• Wrong strategy..??

• HR Problem..??

MIMBAR KAMPUS, MIMBAR BEBAS.

• No sensor & Kritis.

• Centre of Informations

• Tempat pemerintah bertanya.

• Tempat lahirnya Entrepreneur Pengusaha Maritim.

• Organize routine maritime Seminars and Workshops

KAMPUS STIP. HARUS KRITIS.

• Pengamat Maritim harus datang dari kampus Maritim seperti STIP.

• WE ARE THE EXPERTS...?

• MAKE YOUR SELF HEARD..!

• Suara kampus netral, No confligt of Interest.

Recommendations .

RECOMMENDATIONS 1.

• MONEY HAS NO FLAG, CAPITAL HAS NO BORDER, WE ARE PART OF GLOBAL SYSTEM, RELEASE “OWNERSHIP”, MAINTAIN “FLAGSHIP”.

• LOCAL BANK INVOLVEMENT.

• VAT. SHIPBUILDING MATERIALS 0% - FOLLOW IMPORT 2ND HAND VESSEL.

• RATIFIKASI Convention of Arrest of Ship 1999.

• SET UP P&I /H&M + MARINE CARGO INSURANCES IN INDONESIA.

• SET UP PRIVATE MARITIME ACADEMY.• LONG TERM CONTRACT OF AFFREIGHTMENT/COA.

• BKI TO BE A MEMBER OF IASC.

• BALI CASE, FREE ADVERTISEMENT, THEY WILL SING A GOOD SONG.

Recommendations 2.

• WE SHOULD ABLE TO REGULATES.

• “FLAGSHIP” IS MORE IMPORTANT THAN “OWNERSHIP”

• FOCUS TO BUILD SHORE BASE FASILITIES.

• ( PORTS AND TERMINALS, DOCK YARDS, WAREHOUSES, BONDED ZONES, CONTAINERS

YARDS/DEPOS ETC)

Recommendations - 3

• SET UP “INDONESIAN MARITIME AUTHORITY” (IMA)

• DGST/SEACOM DIRECTLY UNDER ONE MINISTER OR DIRECT UNDER PRESIDENT.?

• BMA, PMA, OTORITA BATAM, OTORITA KEMAYORAN

• PAT- PORT AUTHORITHY OF THAILAND

• MPA-SINGAPORE

• PANTASKAH DARAT, LAUT & UDARA DALAM SATU KEMENTERIAN U/ NEGARA BESAR SEPERTI INDONESIA ....?

S C C E S S

THERE WILL BE No Success without “U”

We need your supports

Questions & Answers