ECSA expressed its opposition to a new law by Indonesia, imposing that certain commodities can only be transported for import or export by national maritime transport companies. European shipowners request EU to react upon “this violation of free trade principles”, especially in the light of the ongoing FTA discussions between the EU and Indonesia.
As informed, commodities affected by the new law are coal, crude palm oil, rice and goods for government procurement. European shipowners consider this new law a clear measure of protectionism that will impact seriously European shipping companies that have longstanding access to this market. ECSA also warns that it puts at risk the Indonesian’s business climate and confidence for foreign investors.
Namely, this new decree imposes:
- that all export of coal and/or crude palm oil is carried out by maritime transport which is controlled by National Maritime Transportation Companies; these exporters must utilise insurance from national insurance companies;
- that all import of rice is carried out by maritime transport which is controlled by National Maritime Transportation Companies; importers of these goods must utilise insurance from national insurance companies;
- that all import of goods for government procurement is carried out by maritime transport which is controlled by National Maritime Transportation Companies; importers of these goods must utilise insurance from national insurance companies;
- that, when the availability of the National Maritime Transportation Companies is limited or not there at all, one is exempted from using them and can turn to foreign maritime transportation companies;
- that there will be a system of reporting on the utilisation of these services. Violations will be subject to administrative sanctions.
As a result, ECSA calls upon the EU to:
- approach the Indonesian authorities in order to have this law taken off the table;
- ensure inclusion of strong principles on maritime transport services in any future free trade agreement with Indonesia that will avoid any of such rules to re-emerge.
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Martin Dorsman, ECSA’s Secretary General comments:
“In a time when the EU and Indonesia are negotiating on a free trade agreement, the adoption by the Indonesian authorities of such a law is unacceptable. In view of this week’s bilateral trade talks we have passed our concerns on to the European Commission and hope they will see a chance to question their Indonesian counterparts on this matter.”