Contributing Foreign Exchange, National Navy Companies Must Be Protected, Jakarta

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Indonesia, – National naval companies have contributed significantly to foreign exchange for the country. Therefore, the government needs to protect national force companies, one of which is by revising the Regulation of the Minister of Trade (Permendag) Number 65 of 2020 concerning Provisions for the Use of the National Navy and National Insurance for the Export and Import of Certain Goods.

This was said by an economic observer who is also the Chairperson of the Indonesian Movement and Foreign Relations Agency (PPI) Gerry Hukubun in Jakarta, Wednesday (24/2/2021).

It is said, Article 3 paragraph (1) MOT 65/2020 states, the obligation to use the national navy as referred to in Article 2 paragraph (1) applies to exporters who export coal or / and CPO using the navy with a carrying capacity of up to 10,000 deadweight tennage ( dwt).

Then ,, Article 3 paragraph (2) states, the obligation to use the national navy and national insurance as referred to in Article 2 paragraph (1) applies to importers who import rice and / or goods for the procurement of government goods using the navy with a carrying capacity up to 10,000 dwt.

By itself, said Gerry, this regulation limits the use of the national navy to be able to provide transportation services of more than 10,000 dwt. This government regulation opens up space to use foreign naval services, which in fact, on the ground, do not properly carry out their obligations according to PPH 15 to tax foreign ships that generate foreign exchange for the country.

Meanwhile, he said, the national naval fleet would pay taxes according to the regulations and could generate foreign exchange for the country. “I give an example of one commodity, namely coal. From the data from the Ministry of Transportation, the map of coal export parcel (ship unit) for 2018 export cargo for 12,000 dwt and below, as many as 507 shipments. For 40,000 dwt to 12,000dwt to 602 shipments. From 50,000 dwt-40,000 dwt 867 shipments, 60,000 dwt-50,000 dwt 1885 shipments, 80,000 dwt-60 000 dwt 2,895 shipments, 100,000 dwt-80,000 dwt 608 shipments, and over 100,000 dwt of 281 shipments, “said Gerry

From this data, he said, the state only provides space and takes sides for the national fleet of 10,000 dwt, so that most of it is dominated by foreign transport companies. In 2018, domestic and export coal production was 900,000,000 metric tonnes with an average freight price of US $ 9 / MT.

“If multiplied, the country can get foreign exchange of US $ 3.6 million if all transportation is served by the national navy. That’s just one commodity. Imagine if all commodities, how much foreign exchange will be obtained only from national shipping, “he said.

Foreign generation companies are indeed subject to a 2.64% tax in order to become foreign exchange for the country. However, the facts on the ground so far, said Gerry, are that foreign ships that enter to collect commodities in Indonesia do not fulfill this obligation. Meanwhile, national shipping entrepreneurs who wish to charter and use foreign vessels are subject to 20% tax according to PPH 26.

In this case, said Gerry, there is an imbalance in business competition between national and foreign shipping companies. Meanwhile, Article 2 of Law Number 17 of 2008 concerning Shipping states that the principle of managing shipping must be able to maintain the territorial integrity of the Unitary State of the Republic of Indonesia (NKRI). That is, the position of the national navy for this country is very important. If the country is in a critical condition, the national naval fleet is obliged to assist the country in logistics transportation and in any case. This does not apply to foreign fleets

“So, my suggestion is that the Minister of Trade Regulation 65/2020 needs to be revised, in which the obligation to use the national fleet from 10,000 dwt is increased to 50,000 dwt so that it is able to provide space for the national navy to get space and guarantees from the state so that it can be maximized in carrying out shipping activities,” said Gerry.

In addition, the government must be firm in collecting the PPH 15 tax of 2.64% for foreign transportation in order to generate foreign exchange for the country. The government is also expected to remove or reduce the PPH 26 tax by 20% so that national and foreign navies can compete fairly.

“If this policy is carried out, then in addition to answering the mandate of Law 17/2008, we can also increase foreign exchange for the country through foreign ships entering our country,” said Gerry.


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