Indonesia is an Archipelago State ( Compl )

8/7/2019 Indonesia is an Archipelago State ( Compl )

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RIZA CITASUARA


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INDONESIA : AN ARCHIPELAGO STATE

Indonesia is a country with 3,288,683 square kilometers of seas

and total population of more than 214,000,000. There are 13,667islands in Indonesia. We cannot pass through Indonesia in justone night from the extreme west of Sumatera to the island of Iranin the extreme east of the country.

With 3,288,683 square kilometers of sea areas, Indonesia is one

of the biggest maritime countries in the world. The hugepopulation of Indonesia is spread in five big islands, namelySumatra, Java, Kalimantan, Sulawesi, and Papua. Those islandsare separated by vast seas, so that the primary means oftransportation are boats and ships. They are needed to transportpeople as well as goods for their basic needs. Besides

Being used for national transportation, the sea of Java and theother Indonesia seas also benefited by international big ships forthe world trade purpose. We can imagine how busy is themaritime traffic in Indonesia.


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PROBLEMS

1. The National Shipping Companies capacity is not in balancewith the increase of cargo that needs to be transported

2. The use of foreign ships to operate in Indonesia in accordancewith Government Regulation No. 17 year 1988 has causednegative impacts on the development of the national fleetsbecause they are not able to compete, in selling, type of ship,age, speed and technology.

3. The amount of capital possessed by shipping companies.


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4. The lower quality of human resources and companymanagement.

5. Tendency of importers to use CIF for import, exporters to use

FOB for export in their trade requirements.

6. Indonesia is a developing country and it does have enoughfunds to cope with the huge problems to the worthiness ofships and safety of the passenger. Whereas transportation bysea is inevitably the best choice in Indonesia and it is difficult

to be replaced by other modes of transportation.

PROBLEMS


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FLEETS CAPACITY IN SOMEASIAN COUNTRIES, YEAR 2001

7.3

4.3

DWT

19.2

6

89

4

14.213.6

0

5

10

15

20

25

INA SIN PHI HONG JPN

Source : The Baltic Asia Pasific Shipping 2002

CHNKORSELTWNTHAMAL

4

COUNTRY

RELATED TO PROB.


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CARGO DEVELOPMENTIN 1998 - 2001

125

180152

75

266

338364

187

391

518 516

262

0

100

200

300

400

500

600

1998 1999 2000 2001

DOMESTIC

INTERNATIONAL

TOTAL VOLUME

MILLION TONNAGE

YEAR

1ST SEMESTER

RELATED TO PROB.


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NATIONAL SEA TRANSPORT FLEETPOTENSIALS

DOMESTIC CARGO TRANSPORT FLEETS Sea Transport 5.937 Units

Specific Sea Transport 2.020 Units

Traditional Shipping 2.530 Units

Pioneer Sea Transport 40 Units

INTERNATIONAL CARGO TRANSPORTFLEETS Number of Fleet 33 Units Capacity 283.405 DWT

NATIONAL PASSENGER TRANSPORTFLEETS

Total Fleets 29 Units( Type : 2000, 1000, 500 & Ro-Ro )

RELATED TO PROB.


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DOMESTIC SHARE

53.01%

46.99%

4.62

95.38

SHARE OF CARGO TRANSPORTDOMESTIC & INTERNATIONAL, YEAR 2000

FOREIGN FLEET

NATIONAL FLEET

INTERNATIONAL SHARE

RELATED TO PROB.


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5,408

3,791

1,328

-1,000

2,000

3,000

4,000

5,000

6,000

2000

DWT

GT

HP

NUMBER OF FLEET UNITS, YEAR 2000

unit

unit

unit


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SHIPPING COMPANY AND NON SHIP AGENCYPOTENTIALS

1,465

1,6241,724

852

462 494509 524

0

200

400

600

800

1,0001,200

1,400

1,600

1,8002,000

1998 1999 2000 2001

Shipping Company

Agency Non Ship


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SOURCING

ASIA PACIFIC AS A RESOURCE BASE

COSTCUSTOMER

ADAPTATIONSERVICE TECHNOLOGY

INDONESIA

CHINA

THAILANDMALAYSIA

PHILIPPINES

KOREA

TAIWAN

SINGAPORE

HONGKONG

JAPAN

LOGISTICS

RAWMATERIALS

COMPONENT

S

LABOURFLEXIBILITY MARKET

INETLLIGENCE CONTACTS

FINANCING NEW PROCESSES

NEW MATERIALSSPEED

Source : Strategies for Asia Pacific - beyond the Crisis by P. Lasserre & H. Schutte


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1. SLOW YIELDING BANK REFUSED TO GIVECREDIT

2. CAPITAL INTENSIVE OLD VESSEL3. REGULATIONS BIG SHARE FOR

FOREIGN VESSELS

NO ROUTESTRUCTURING

4. NO MORTGAGE LAW NO FOREIGNINVESTMENT

HANDICAPS IN DEVELOPING NATIONAL

SHIPPING COMPANY IN INDONESIA


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CONDUCTING RESEARCH TO FIND OUT THE REAL

SITUATION OF INDONESIAN NATIONAL SHIPPING AND

HOW TO TAKE THE NECESSARYSOLUTIONS.

R E S E A R C H

DIRECTION TO INCREASE NATIONAL SHIPPING

FOR DOMESTIC AND INTERNATIONAL SHARING

DEVELOPMENT

RESEARCH & DEVELOPMENT


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2. RESEARCH

3. SERVICE TO

COMMUNITY

3 OF UNIVERSITY OBLIGATION


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THE BENEFITS OF FOREIGN INVESTORS

1. OBTAINING FINANCIAL INTEREST

2. SELLING SHIPS

3. SELLING EQUIPMENTS FOR SHIPSTELECOMUNICATION AND NAVIGATION AIDS

4. BUILDING SHIPYARDS

5. ARRANGEMENT CONTRACT FOR CREATINGSEABORNE TRADE FOR INDONESIAN NATIONALNETWORKING

6. FEE FOR MANAGEMENT, ECONOMIC AND LAWCONSULTANCY

FOR THOUSANDS VESSELS IN

INDONESIA

( IF PARTICIPATING FOR BUILDING STRONGINDONESIAN NATIONAL SHIPPING ENVIRONMENT )


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Indonesia is an Archipelago State ( Compl )

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