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News » General news » Indonesia eyes 20 percent growth in the shipping next year
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| 10/12/2012 |
| Indonesia eyes 20 percent growth in the shipping next year |
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The Indonesian National Shipowners Association (INSA) predicts
According to the Jakarta Post, Indonesia will see around 20 percent growth in the shipping industry next year on the back of the country's healthy economic performance, the Indonesian National Shipowners Association (INSA) predicts.
INSA chairwoman Carmelita Hartoto said that most local players, especially those involved in coal and offshore oil and gas, will add more vessels to expand their business in 2013.
"We will have 560 new ships to support national and international trade next year, especially in the coal and offshore oil industries. Despite the eurozone crisis and decreasing demand from China, we are confident that our shipping business will grow because of strong domestic demand," Carmelita said in Jakarta on Friday at the Indonesia Shipping Outlook Seminar.
The additional 560 ships, including tug boats, bulk carriers, platform service vessels diving service vessels, and tankers, will increase the number of Indonesian flagged ships to 12,600 in 2013.
By operating 12,600 ships, Indonesian shippers are expected to be able to deliver up to 1.2 billion tons of cargo, for both the domestic and international market, she said.
For the year to date, the figure is still below 1 billion tons.
"We predicted that the one billion ton target would be only achieved in the next two to three years. But growth is faster than the estimate. The cabotage policy has also helped Indonesian shippers," she added.
The government implemented the cabotage principle through a Presidential decree in 2005 requiring all vessels operating in Indonesian waters to be domestically owned.
The rules have brought a number of benefits to the shipping industry indicated by the increasing number of national flagged vessels for domestic maritime transportation and the amount of cargo delivered by the national fleet.
According to INSA data, Indonesia's shipping fleet has nearly doubled from only 6,041 in 2005 to 12,000 ships in the current national fleet.
Source: the Jakarta Post
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