News - 07 June 2018

Government revokes requirement to use local ships for commodity export-import

Trade Minister Enggartiasto Lukita. (JP/Wendra Ajistyatama)

Trade Minister Enggartiasto Lukita said his ministry has revoked a regulation that requires the use of Indonesian ships to export and import three commodities – coal, crude palm oil and rice.

Trade Ministerial Regulation No. 82/2017 on the use of sea transportation and national insurance for export and import of certain commodities was revoked in response to protests by businesspeople about the difficulties in fulfilling the requirement.

“The regulation has been revoked,” the minister confirmed as reported by kontan.co.id after attending a breaking-of-the-fast event at his office in Jakarta on Tuesday.

Earlier this year, Enggartiasto said he had met with members of the Indonesia National Ship Owners Association to find out about the readiness of the country’s shipping companies to take over the export-import operations of the three commodities.

However, it became apparent the national shipping companies were not ready to take over export-import operations.

Before revoking the regulation, the Trade Ministry reportedly issued Trade Ministerial Regulation No. 48/2018 to revise the contents of Regulation No. 82/2017, which postponed the requirement of using Indonesian ships for export and import of the three commodities. (bbn)

The Jakarta Post