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The Revision Of The Shipping Law Will Boost The Empowerment Of Local Shipping And Uphold The Cabotage Principle

Friday, 27 Sep 2024

Transportation Minister Budi Karya Sumadi has announced a revision to Law Number 17 of 2008 concerning Shipping, aimed at enhancing the empowerment of traditional shipping and enforcing the cabotage principle. He shared this during a working meeting with Commission V of the Indonesian House of Representatives regarding the decision-making process on the first stage of the Shipping Bill at the DPR RI building in Senayan, Jakarta, on Wednesday night (September 25).

"The proposed Shipping Bill includes key points such as improving the efficiency of logistics transport to reduce price disparities, empowering traditional shipping, and strengthening the cabotage principle for Indonesia's shipping independence and competitiveness," said the Minister.

In addition to these points, the revised Shipping Law will also address institutional oversight of shipping, increasing the role of shipping stakeholders in determining port service tariffs, and enhancing the government's commitment to protecting the maritime environment from pollution and damage.

During this meeting, the Minister approved the results of the House of Representatives' Working Committee regarding the proposed revision of Law Number 17 of 2008 on Shipping. He hopes that the draft law resulting from this committee meeting will lead to a fair shipping system, more effective and efficient logistics costs, and strengthen national resilience as part of the national transportation system.

"The provision of services as part of the national transportation shift has been hampered by high logistics costs, so we need to strengthen and empower traditional shipping, improve management and governance of ports more effectively and efficiently, and optimize institutions involved in shipping," the Minister explained.

The Minister of Transportation mentioned that there are 68 changes across 66 articles in the shipping bill, which includes several new provisions agreed upon by both the government and the House of Representatives. "Next, we will follow the series of discussions on the bill in accordance with the applicable laws," he added.

This shipping bill has also received approval from all factions in Commission V of the House. Moving forward, the House will take the shipping bill to the next stage of discussion, which involves decision-making in the upcoming plenary session.

Representatives from the Ministry of Defense, Ministry of Finance, Ministry of Law and Human Rights, Ministry of Administrative and Bureaucratic Reform, and the Ministry of Maritime Affairs and Fisheries were also present at this working meeting as government representatives.



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