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Thursday, 21 January 10
CABOTAGE POLICY POSTPONED
 The Transportation Ministry has decided to postpone for one year the full enforcement of the cabotage principle – a maritime term for the prohibition of foreign ships carrying domestic cargo – which was originally scheduled for earlier this month, as required by a presidential instruction issued in 2005.
Transportation Minister Freddy Numberi explained Monday the postponement was allowed by the 2008 Maritime Transport Service Law, which stipulates, among other things, that the cabotage policy shall be implemented three years after the law comes into force.
The issue here is not whether the deferment is legal, but simply the sad fact that five years after the promulgation of the presidential decree, national freighters are not yet ready to fully take over the shipment of domestic seaborne cargo.
This is only more evidence of how ignorant the government has been of basic infrastructure, notably coastal shipping services, which are vital for such a vast archipelagic country as Indonesia.
It is understandable if more than 80 percent of our exports and imports are still controlled by foreign vessels, in view of the keen competition in international freight service. But letting around 40 percent of our domestic seaborne cargo remain carried by foreign-flagged ships could inflict severe damage to our economy.
Inter-island shipping provides input to the national economy both through the transport of commodities used in manufacturing and through the distribution of finished goods. Put another way, efficient and extensive coastal shipping services deepen the economic integration and linkages between all the major islands.
We therefore find it hard to understand why the government has not made concerted efforts to empower the national shipping and shipbuilding industries through well-coordinated policies involving banks, shippers (manufacturers) and other related parties.
Cabotage relaxation could benefit the economy through wider access to lower freight rates, because international bulk ships usually have much larger capacities. Moreover, many bulk ships servicing Australia’s exports of coal, iron ore, wheat, alumina and sugar to South Korea, India and Japan and even Indonesia arrive in Australia empty. Hence these freighters can marginally cost their inbound capacity at rates national freighter companies cannot compete with.
But we should look beyond the short-term benefits. Heavy dependence on foreign vessels for our domestic cargo makes our economy vulnerable to a sudden disruption of supplies, because foreign bulk vessels select their service routes primarily on the basis of optimizing cargoes and returns. If the government is really serious about improving national economic competitiveness and making the archipelago an economically integrated zone, it has no other choice but to empower the shipping and shipbuilding industries in cooperation with banks, traders and manufacturing companies.
The implementation of the cabotage principle would go a long way in making shipping firms more attractive to bank lending as it would increase the cargo volume for national freighters, which in turn would require more cargo vessels.
The development of coastal freight services has become more imperative now due to the sharp increase in the demand for inter-island shipments of coal, palm oil, petroleum-based products and various other bulk commodities.
For instance, coal shipments alone will more than double into the hundreds of millions of tons within six to 10 years as a result of the building of new coal-fired power plants with a total capacity of 10,000 megawatts in Java, while coal supplies are derived mainly from Kalimantan and Sumatra.
Source: Editorial / The Jakarta Post
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Saturday, 13 February 10
INDONESIA ISSUES NEW MINING REGULATIONS
Indonesia has issued two new regulations under its mining law to allow firms to start obtaining mining permits, in a move that should increase certa ...
Saturday, 13 February 10
COAL INDIA 2010/11 COAL IMPORTS TO JUMP - EXEC
Coal imports by state-run Coal India Ltd are likely to soar to 6-10 million tonnes in fiscal 2010/11 from an expected 1.5-1.7 million tonnes in the ...
Saturday, 13 February 10
RULES MAY FREE $10B OF MINING PROJECTS IN INDONESIA
The government announced on Friday that it had issued two implementing regulations for the new Mining Law that will clear the way for the developmen ...
Saturday, 13 February 10
INDONESIA OFFERS TAX INCENTIVES FOR RENEWABLE ENERGY
Indonesia is offering tax incentives to develop renewable energy projects, including geothermal energy, to cut dependency on fossil fuels, a decree ...
Friday, 12 February 10
MECHEL EYES 2010 COAL OUTPUT AT 28-29 MLN T
Russian steel and coking coal producer Mechel expects coal output to reach 28-29 million tonnes this year, returning to pre-crisis levels thanks to ...
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- Larsen & Toubro Limited - India
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- CIMB Investment Bank - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- International Coal Ventures Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- India Bulls Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Manunggal Multi Energi - Indonesia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- Ministry of Mines - Canada
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Gujarat Mineral Development Corp Ltd - India
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Bhatia International Limited - India
- Timah Investasi Mineral - Indoneisa
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Ind-Barath Power Infra Limited - India
- Makarim & Taira - Indonesia
- Rio Tinto Coal - Australia
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Xindia Steels Limited - India
- The University of Queensland
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Metalloyd Limited - United Kingdom
- Singapore Mercantile Exchange
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Coal and Oil Company - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Indogreen Group - Indonesia
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- IHS Mccloskey Coal Group - USA
- Meenaskhi Energy Private Limited - India
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Anglo American - United Kingdom
- Essar Steel Hazira Ltd - India
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Oldendorff Carriers - Singapore
- San Jose City I Power Corp, Philippines
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Independent Power Producers Association of India
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Heidelberg Cement - Germany
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- ASAPP Information Group - India
- CNBM International Corporation - China
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Aditya Birla Group - India
- Marubeni Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Baramulti Group, Indonesia
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- SN Aboitiz Power Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- London Commodity Brokers - England
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Maharashtra Electricity Regulatory Commission - India
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Economic Council, Georgia
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Tata Chemicals Ltd - India
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
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