Indonesia: Uncertainty over New Import/Export Regulation 82/2017

As reported in the press, the Indonesian Ministry of Trade’s Regulation no. 82/2017 on the Utilisation of Indonesian Sea Carriage and Insurance for Export of Certain Goods will come into effect from 31 April 2018.

The regulation is aimed at promoting Indonesia’s domestic shipping and insurance industries by obliging importers and exporters to use only vessels which are “controlled by Indonesian shipping companies” and Indonesian insurers for:

  1.     coal and/or crude palm oil exports;
  2.     rice imports; and
  3.     the import of goods intended for government procurement.

Under Article 5 of MR no. 82/2017, exemption may be possible if no suitable vessel is available from an Indonesian shipping company or if no suitable insurance is available from an Indonesian insurer, but the precise definition of what “unavailable” will mean in this context has yet to be announced.

Importers and exporters will have to make an online declaration to the Director General of International Trade by the 15th day of the month following a port call, specifying the use of the ship, and its Owners and Insurers.

Failure to comply with any of these requirements will result in administrative sanctions in the form of suspension and/or revocation of permits.

Pending publication of the guidelines promised by the Director General of International Trade, this regulation raises numerous queries in the international and local shipping and trade communities.

Among them, what precisely is meant by a vessel which is “controlled by an Indonesian shipping company”.  Does it include not only vessels which belong to an Indonesian company but also chartered vessels?

If it does apply to chartered vessels, would all or only some types of charter party meet the criteria?

As for the insurance requirements, although it is generally thought that the regulation would apply only to cargo insurance, the regulation itself does not clearly state that it will not include H&M or P&I cover.

While Indonesian shipowners hope that the new regulation will open new markets for them, importers and exporters have expressed fears that the uncertainty surrounding the new regulation will put new contracts on hold.

The International Chamber of Shipping has pointed out that the Regulation no. 82/2017 may be contrary to accepted international practice as well as Indonesia’s obligations as a member of the World Trade Organisation.

Tensions in Conakry

In a tense post municipal election context, Budd’s Guinea office advises that the general teacher’s strike which started today (12 February 2018) could potentially lead to further violence and rioting in Conakry.

Pupils were sent home from school this morning and in some areas, road blocks of burning tyres have been set up.  Police have been dispersing demonstrators, some of whom are said to be young people protesting at school closures.

Budd Guinea recommends that crew members avoid leaving their vessels if at all possible for the time being.

The Istanbul Canal: Plans Unveiled

This week, detailed plans were released for the proposed ‘Istanbul Canal’, an artificial waterway linking the Black Sea to the Marmara Sea and flowing 45 kms through Turkey’s largest city Istanbul.

map

The plan includes three underwater tunnels for road vehicles.

Turkey’s President has now announced that construction will begin this year, with the end product linking Lake Buyukcekmece, adjoining the Sea of Marmara, with the Black Sea at the other end, just north of Durusu.

The shipping world is extremely excited about these proposals which should reduce congestion in the Istanbul Strait – currently one of the busiest waterways in the world with over 50,000 vessels passing through each year.

The long-awaited canal should also enable Turkey to respond positively to the international pressure to increase crude oil tonnage.

The Gambia – One Year after Yahya Jammeh

One year on from the end of the leadership of Yahya Jammeh in Gambia, after his exile to Equatorial Guinea, citizens say they are starting to feel safe again and reports predict that the Gambian economy is beginning to stabilize.

In December 2016, Jammeh had refused to step down and accept his election defeat to the new President, Adama Barrow. With the help of the united support of the governments in a number of African Nations such as Senegal, Guinea and Mauritania, Jammeh finally agreed to step down and to flee to the control of Equatorial Guinea, encouraged by its long-term leader, Theodore Obiang Nguema Mbasogo.

Barrow is a much more popular President, and freedom in the country is beginning to return.

« Among other openings associated with the departure of former president Yahya Jammeh, exiled journalists and activists returned, political prisoners were released, ministers declared their assets to an ombudsman, and the press union began work on media-sector reform.”

This week, however, the army reported that two of Jammeh’s Generals were found back within Gambia borders and were arrested, proving how difficult it has been and will continue to be for President Barrow to regain full control of the country after 22 years of Jammeh’s rule and influence.

With the social and economic climate of Gambia in slow recovery, and investors returning to the nation, business will hopefully grow and trade will likely increase significantly in the coming years.

VIDEO -Watch to hear the testimonies of the youngest generation in Gambia, who finally feel hope for the future of their country.

 

BREXIT on the British Port Association’s 2018 Agenda

As Theresa May announces plans for the completion of the BREXIT negotiations by 2019, the British Port Association has declared that throughout 2018, it will be working to influence the discussions on the issues which will affect business in ports in the future, e.g. changes in Customs regulations and new environmental policies.

Chief Executive of the BPA, Richard Ballantyne, comments “A number of ports, particularly the UK’s network of Roll-on Roll-off ferry ports, are concerned that following the UK’s departure from the Customs Union and the Single Market, new bureaucratic border checks could slow down trade. As phase 2 of the Brexit negotiations begin, we will be pressing the UK Government to ensure that trade facilitation is given a much higher prominence in the discussions”.

Ballantyne voiced his disappointment that the proposed “free ports policy” is not on the government’s agenda for the time being.

It is also a priority of the BPA to ensure that port funding is not threatened, freight transportation costs remain at a reasonable level, and that legislative updates are made to some areas of maritime safety law. For example, the BPA recommends updating UK harbour and shipping legislation to improve safety.  According to the BPA, changes should include the definition of certain leisure craft as “ships” and alcohol limits for those sailing non-professional vessels.

Happy New Year!

Happy New Year from all at the Budd Group. Wishing all our clients and friends a prosperous and successful 2018!

We are looking forward to exciting new opportunities this year and to continuing to serve the maritime community as Correspondents to the world’s leading insurers and their insured.

2018 will see this blog continue to grow and deliver information from our offices in France, Africa and Asia, keeping our clients in touch with what’s happening both in those countries in which we operate and beyond.

Specific maritime alerts are to be found on our website – www.budd-pni.com – along with additional information about our network and services.

If you are on the move, the Budd App (search for “budd group”) provides quick and easy access to the full coordinates of all our staff from your smart phone, along with a vessel tracking facility.  There is no charge for the App.

For 24/7 assistance, or a quotation, please do not hesitate to call us on +33 (0)491 33 58 33 or +33 (0)184 88 08 41 (AOH Emergency no.) or email general.marseille@budd-pni.com.

World’s Largest Floating Solar Panel Project to be Developed by Indonesia

Indonesia and Abu Dhabi have signed a joint project development agreement for the world’s largest floating solar plant.

“With a capacity of 200 megawatt (MW), the plant will cover an area of 225 hectares atop the Cirata Reservoir in the West Java province of Indonesia. The 6,000-hectare Cirata Reservoir already powers a 1GW hydroelectric power station. The planned 200MW floating PV project will be mounted on 700,000 floats moored to the bed of the Cirata reservoir and connected by electrical cables to an onshore high-voltage substation.”

Source: http://www.arabianbusiness.com/industries/energy/384636-uaes-masdar-inks-deal-to-build-floating-solar-plant-in-indonesia

Indonesia in particular has announced its intentions to replace 31% of its energy used with renewable energy by 2050.