Transportation Ministry Promises to Simplify Permits

Transportation Ministry Promises to Simplify Permits

JAKARTA – Transportation Ministry will simplify land usage permit for shipyard industry, following fiscal and non-fiscal incentives distribution by the government.

Maritime Transportation Director General, Bobby R. Mamahit, said he will give the availability of shipyard land in port location by simplifying land usage permit along with fiscal incentives distribution by the government for shipyard sector.

Besides facilitating land procurement, Transportation Ministry is ready to lower land leasing tariff for shipyard industry. The existing shipyard lands focused by Transportation Ministry are located in main ports such as in Tanjung Priok Port and Tanjung Perak Port. Moreover, shipyard development will gradually be implemented in relatively small ports. “So, we will simplify several regulations,” he said last weekend.

Transportation Ministry as a technical ministry will boost the equal shipyard distribution to ease shipping business players when conducting vessel docking.

It is based on Presidential Instruction (Inpres) No. 5/2005 about National Shipping Industry Empowerment and Law (UU) No. 17/2008 about Shipping which also covers shipyard industry development whose one of the points is related to tax incentive and other incentives. With all incentives, Bobby expected Indonesia can be the host of domestic maritime industry.

Maritime Coordinating Minister, Indroyono Soesilo, explained there are six pints of tax incentive which will be given to shipyard industry. First, the government will revoke value-added tax (PPN) for national shipyards outside Batam. Second, IDR 39 billion government-paid import duty (BMDTP) is targeted to be implemented in January 2015 for the components related to other industries. Third, there is income tax (PPh) for shipyard industry with minimum capital limit of IDR 50 billion and employment opportunity for 300 people.

Fourth, the government gives non-fiscal incentives in form of land-leasing cost for shipyard referring to Law No. 17/2008. Port Authority will act as the regulator determining and regulating port working area.

Fifth, National Ship Design Center development in Surabaya is intensified. Sixth is roadmap of shipyard industrial development which also covers second-hand vessels. “This is made to see the progress of shipyard product in the next five years,” he said.

Specifically, the government targeted performance improvement of the shipyards outside Batam. The performances of 88 shipyards outside Batam are left behind than 110 shipyards operated in the island.

Bambang Harjo S, River, Lake, and Ferriage Transportation Employer Association (Gapasdap) Deputy Chairman, said shipyard condition is not proper since not more than 20% of ports have shipyards.

From the amount, he explained, not many shipyards are deemed proper to serve vessel reparation.

One of the ports is Balikpapan Port having shipyard area around 60 meters while the vessels usually berthed there are 200 units.

According to him, the condition makes great national shipping not like to visit the port. Therefore, he added, the government needs to have commitment to shipyard industry as the continuation from the commitment to make Indonesia as a global maritime axis country since shipyard is one of port supporters. “It should be concerned,” said Bambang who is also the member of House’s Commission VI. (Bisnis Indonesia)