The Ministry of Energy and Mineral Resources (EMR) expects flexibility on the obligation to use Indonesian-Flagged floating facilities at the Indonesian seas (cabotage). The dispensation is expected mainly for the use of floating storage facilities and regasification unit (FSRU).
Director of Upstream Oil and Gas Directorate General of Oil and Gas Ministry of Energy and Mineral Resources A. Edy Hermantoro asses that the implementation of cabotage without any exemption for oil and gas sector will potentially impede the efforts to achieve gas utilization target from the FSRU starting 2011. "If the FSRU project is now starting to be built, in September 2011 it should be fully operated. Are the facilities already in the country? We asked for flexibility in the implementation, "he said yesterday. Basically, he added, as far as possible the implementation of cabotage is still respecting the development of domestic products, until finally the national shipyards are ready to provide the FSRU.
Until now, he said, Indonesia still requires foreign vessels involvement to support oil and gas activities in the country. In fact, he added in some cases the mechanism of leasing foreign vessels is cheaper than buying the vessels. He gave an example of domestic oil and gas industry still requires floating storage and offloading (FSO) vessels to transport LPG from other countries. On the other hand, IPA Executive Director Suyitno Padmosukismo stated that until now, there are vessels which are used in the offshore exploration and production activities that are not yet produced in the country, especially the vessels in category B and C, including seismic and drilling ship.
Consistency
Meanwhile, the shipping industry requests the government to remain consistent with the policies to regulate shipping activities. President Director of PT Era Indoasia Fortune Paulis A. Djohan said that all types of vessels needed, including all the technology-intensive floating vessels can be provided under the Indonesian-flagged as long as there is certainty to gain long-term contracts. Maman Permana, Secretary to the Community Observer on Shipping, Ports and Maritime Environment (Mappel) said the implementation of cabotage policy in Indonesia is very flexible so that oil and gas exploration and exploitation activities will not be disturbed. "During these 5 years of cabotage, oil and gas exploration and exploitation activities never get any disturbance," he said.