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Cabotage offshore requires fiscal stimulus

JAKARTA: The implementation of Cabotage roadmap over offshore fleet is viewed to be ineffective without the implantation of fiscal stimulus to purchase offshore ships. Shipping observers are pessimistic the Cabotage roadmap that requires another country

JAKARTA: The implementation of Cabotage roadmap over offshore fleet is viewed to be ineffective without the implantation of fiscal stimulus to purchase offshore ships. Shipping observers are pessimistic the Cabotage roadmap that requires another country offshore ships to be operated by domestic companies in December 2015 at the latest can be implemented on time.Saut Gurning, maritime observer, viewed fiscal stimulus is needed to encourage national entrepreneurs to procure vessels for offshore seismic activity, drilling, and offshore construction and strict supervision over the implementation of the tender.In his opinion, Minister of Transportation Law No. 48/2011 on Cabotage roadmap is only oriented predominantly on administrative requirements and it tends to be short term.Fiscal PolicyPT Era Indoasia Fortunes President Director Paulis A. Djohan viewed fiscal stimulus such as removing the policy of import duties over foreign ships needs to be conducted until 2015.Because, he said, the ships which require large investments such as for seismic activity, construction and offshore drilling and a number of vessels supporting offshore activities cannot be produced domestically. (T05/wiw)

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