Indonesia aiming to enhance benefits of cabotage regime

摘要

Six years after the roadmap for implementing Indonesian flag requirements in the offshore marine sector was laid out, the Southeast Asian country is taking steps towards achieving the second level of cabotage application, the aim of which is to encourage vessels operating in domestic oil and gas fields to be constructed locally. Building Indonesia's maritime power formed the main thrust of the country's seventh elected president Joko Widodo's inauguration speech back in October 2014. Whilst the focus of the first five months of his time in office appeared to swing towards cleaning up downstream operations, the Jokowi administration is quietly ramping up -along with the ongoing restructuring of upstream regulatory body SKK Migas - associated reforms in the offshore marine sector. These include regulatory updates that have been gradually put in place to multiply the economic benefits from cabotage implementation.