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Indonesia revokes new cabotage rules

Indonesia revokes new cabotage rules
Grant Rowles March 19th, 2020

Indonesia’s government will revoke cabotage rules due to come into force in May, Reuters reports citing comments from the country’s coordinating minister for maritime and investment affairs Luhut Pandjaitan.

The new law stated that certain commodities can only be transported for import or export by national maritime transport companies. The commodities that were set to be affected were coal, crude palm oil, rice and goods for government procurement.

The government has since concluded that the rule would be disruptive for exports and President Joko Widodo has ordered it to be revoked, Pandjaitan said.

Indonesia had come under fire over the ruling from various shipping entities, including the European Community Shipowners’ Association (ECSA) European the International Chamber of Shipping