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JAKARTA: Two jack up offshore boats from Japan will enter Indonesia and change flag to Indonesian one.

The national shipping businesses previously were doubted to be able to procure the class-C boat, leading to a discourse to delay the application of the cabotage principle until May 7, 2011 from the previous schedule of January 1, 2011. A member of the Central Executive Board of the Indonesian National Shipowners' Association (INSA) Kardja Rahardja revealed the association had made serious discussion with the boat owner over the past several months. The company, Japan Drilling Company, currently operates at least six rig boats, including jack up rig boats. "They will be ready to work in Indonesia. One or two rig boats at least will change flag," he told Bisnis yesterday. According to him, the two rig boats would enter Indonesia and comply with the cabotage principle, which requires all domestic sea transportation armadas to be Indonesia-flagged. The owner and President Director of PT Pelayaran Tamarin Samudera explained the company was finalizing the plan by looking at the implementation of Law 17/2008 on Shipping. "Therefore, we should not revise the Shipping Law." In its website, Japan Drilling Company (JDC) is a company that provides special service to offshore oil and gas drilling companies worldwide. JDC currently operates two jack up rig boats, two semi-submersible rig boats, and one drilling ship. The company has been doing business in the drilling sector for more than 40 years. The jack up rig boats operated by the company are Hakuryu-10 (manufactured in 2008), Sagadril-1 (1984) and Sagadril 2 (1984). The company also operates two submersible rig boats, Naga-1 (1974) and Hakuryu-5 (1977), and one drilling ship called Chikyu (2005). Previously, one jack up rig boat operator in Indonesia, PT Apexindo Pratama Duta Tbk, was touted to change the flags of three of its six rig boats to Indonesian flag. Corporate Secretary of PT Apexindo Pratama Duta Tbk Ade Satar said the company had finished changing the flags of its three boats to Indonesian flag and were processing the changing of flags for its three remaining boats. He continued the flag-changing policy would be finished by May 7, 2011. "It is supposed to be finished by May 7, 2011, depending on our consistency in applying the cabotage principle." Information expose Separately, Executive Chairperson of the Shipping, Port, and Maritime Environment Observers Society (Mappel) Elly R. Sudibjo asked the oil and gas regulator to expose transparently to the public about demand for class-C offshore boats in Indonesia. According to Elly, such an information transparency would make it easier for the national shipping businesses to procure the necessary boats ASAP. "Just inform the businesses the need, the locations the boats shall operate, and the contracts." Elly viewed the forced revision of the Shipping Law, which has not even been taking effect for three year, would set a bad precedence. "If the law is forced to be revised, it will be understandable for us to suspect there is a grand scenario behind it." The plan of several national shipping companies to expand business to the big-scale FSO offshore armada procurement sector has been curbed by lack of transparency in the tenders held by oil and gas operators. (Bisnis, December 13, 2010) However, Chairperson of the Indonesian National Shipowners' Association (DPP INSA) Johnson W. Sutjipto denied he had made such a statement. "It is not true that I once stated the tenders for boat procurement held by the upstream oil and gas regulatory agency BP Migas and partner contractors are not transparent. Such coverage may intent to discredit the INSA and ruin the harmonious relationship between the BP Migas and the INSA," said Johnson in his clarification letter to Bisnis yesterday. (wiw)

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