Indonesia needs 285 coal vessels

Jumat, 02 Maret 2012 | 08:07

Coal shipment in Indonesia will need 285 Panamax vessels with a capacity of 76,000 tons to transport coal export which is predicted to reach 240 million tons this year.Chairman of Shipping Industry Development at Board of Directors of Indonesian National Shipowners’ Association (INSA) Ibnu Wibowo said the need of 285 vessels has been calculated based on the coal export projection this year.

“One Panamax vessel in one month is only able to transport coal overseas just one time thus the country needs almost 300 units,” he said yesterday.

The huge need of Panamax vessels, according to him, currently cannot all be supplied from domestic since there are no supporting instruments to boost the use of national commercial ships.

On other hand, he said, the Indonesian flagged vessels in coal export are hard to compete with foreign vessels as there is no equal treatment. “The trading system is still free on board [FOB],” he said.

However, Ibnu said the association will keep supporting the implementation of domestic transporter obligation (DTO), which requires 30% coal transportation for national shipment.

He said the implementation of DTO policy will favor Indonesia as the state revenue from shipping commodity will be optimal.

INSA review states that the potency of the state revenue from tax is US$25.64 million and total shipping cost is US$1.09 billion.

By implementing 30% DTO, the country will post an increase by as much as US$1.11 billion from tax and shipping cost.

Thus, the national shipping companies expect political willingness from the government to lower the balance payment deficit on sea transportation service in order to restructure the coal export with
DTO concept. (T03/msw)

By Tularji, Hadijah Alaydrus