Shipowners Set Up Task Force


News: The Indonesian National Shipowners' Association (INSA), the state-owned Enterprises Ministry and several state-owned companies (SOEs) are reportedly seeking to establish a post-cabotage task force. This development is aimed at reducing the country's freight costs of IDR240trn ($24.96bn) annually, most of which is attributed to foreign shipowners. INSA has joined forces with SOEs as they handle 20% to 30% of exports and imports. The country's trade volume stood at 567mn tonnes in 2011 with the introduction of cabotage rules by the government. However, Indonesian-flagged ships managed to transport only 9.1% of the total, while the remaining was handled by foreign ships.

This article is tagged to:
Sector: Freight Transport, Shipping
Geography: Indonesia, Indonesia, Indonesia, Indonesia