Indonesian government to offer incentives for short-sea shipping

Jakarta: The Indonesian government is planning incentives for shipowners willing to operate short-sea shipping services, or inter-island sea transportation services, from Lampung to East Java to help reduce congestion and road damage along Java’s northern coastal highway, according to Bobby Mamahit, sea transportation director of the nation’s Transportation Ministry.

“We’re planning to provide incentives to reduce short-sea shipping operators’ costs at ports, but we will further discuss this with related stakeholders,” Mamahit said, adding that fuel subsidies are also included in the incentives.

According to the government’s plan, the first stage of the short-sea shipping service is expected to connect Marunda Port in Jakarta to Kendal Port in Central Java. The second stage will connect Jakarta and Surabaya in East Java, and the third is expected to connect Panjang Port in Lampung with Surabaya.

Mamahit said a company had expressed interest to operate the services and planned to start in January next year. [12/12/14]

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