Riza Citasuara

RIZA CITASUARA

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 INDONESIA : AN ARCHIPELAGO STATE
Indonesia is a country with 3,288,683 square kilometers of seas
and total population of more than 214,000,000. There are 13,667
islands in Indonesia. We cannot pass through Indonesia in just
one night from the extreme west of Sumatera to the island of Iran
in the extreme east of the country.
With 3,288,683 square kilometers of sea areas, Indonesia is one
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of the biggest maritime countries in the world. The huge

population of Indonesia is spread in five big islands, namely
Sumatra, Java, Kalimantan, Sulawesi, and Papua. Those islands
are separated by vast seas, so that the primary means of
transportation are boats and ships. They are needed to transport
people as well as goods for their basic needs. Besides
Being used for national transportation, the sea of Java and the
other Indonesia seas also benefited by international big ships for
the world trade purpose. We can imagine how busy is the
maritime traffic in Indonesia.
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 PROBLEMS

1. The National Shipping Companies capacity is not in balance

with the increase of cargo that needs to be transported
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2. The use of foreign ships to operate in Indonesia in accordance

with Government Regulation No. 17 year 1988 has caused
negative impacts on the development of the national fleets
because they are not able to compete, in selling, type of ship,
age, speed and technology.
3. The amount of capital possessed by shipping companies.

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 PROBLEMS

4. The lower quality of human resources and company

management.
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5. Tendency of importers to use CIF for import, exporters to use

FOB for export in their trade requirements.
6. Indonesia is a developing country and it does have enough
funds to cope with the huge problems to the worthiness of
ships and safety of the passenger. Whereas transportation by
sea is inevitably the best choice in Indonesia and it is difficult
to be replaced by other modes of transportation.

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 RELATED TO PROB. 1

FLEETS CAPACITY IN SOME

ASIAN COUNTRIES, YEAR 2001
DW
T
25

19.2
20
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15 14.2
13.6

10 9
7.3 8
6
4.3 4 4
5

0
INA MAL SIN THA PHI TWN HONG KORSEL JPN CHN
COUNTR
Source : The Baltic Asia Pasific Shipping 2002 Y

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 RELATED TO PROB. 1

CARGO DEVELOPMENT
IN 1998 - 2001
MILLION TONNAGE

600
518 516
500
391
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400 364
338
300 266 262

180 187
200 152
125
100 75

0
YEAR
1998 1999 2000 2001
1ST SEMESTER
DOMESTIC
INTERNATIONAL
TOTAL VOLUME

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 RELATED TO PROB. 1

NATIONAL SEA TRANSPORT FLEET

POTENSIALS
 DOMESTIC CARGO TRANSPORT FLEETS
 Sea Transport 5.937 Units
 Specific Sea Transport 2.020 Units
 Traditional Shipping 2.530 Units
 Pioneer Sea Transport 40 Units
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 INTERNATIONAL CARGO TRANSPORT

FLEETS
 Number of Fleet 33 Units
 Capacity 283.405 DWT

 NATIONAL PASSENGER TRANSPORT

FLEETS
 Total Fleets 29 Units
( Type : 2000, 1000, 500 & Ro-Ro )

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 RELATED TO PROB. 2

SHARE OF CARGO TRANSPORT

DOMESTIC & INTERNATIONAL, YEAR 2000

DOMESTIC SHARE INTERNATIONAL SHARE

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4.62

53.01%

46.99%
95.38

FOREIGN FLEET

NATIONAL FLEET

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 NUMBER OF FLEET UNITS, YEAR 2000

5,408
6,000

5,000 unit 3,791

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4,000 DWT
unit GT
3,000
1,328 HP
2,000

1,000 unit
-
2000

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 SHIPPING COMPANY AND NON SHIP AGENCY
POTENTIALS
2,000
1,724
1,800 1,624 Shipping Company
1,600 1,465
Agency Non Ship
1,400
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1,200
1,000 852

800
509 524
600 462 494

400
200
0
1998 1999 2000 2001
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 ASIA PACIFIC AS A RESOURCE BASE

CUSTOMER
SOURCING COST SERVICE TECHNOLOGY
ADAPTATION

RAW FLEXIBILITY MARKET

SPEED NEW MATERIALS
MATERIALS LABOUR INETLLIGENC
E CONTACTS
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COMPONENT
S LOGISTICS FINANCING NEW PROCESSES

INDONESIA KOREA SINGAPORE

CHINA
THAILAND
JAPAN
MALAYSIA

PHILIPPINES
TAIWAN HONGKONG

Source : Strategies for Asia Pacific - beyond the Crisis by P. Lasserre & H. Schutte R&D 11
 HANDICAPS IN DEVELOPING NATIONAL
SHIPPING COMPANY IN INDONESIA

1. SLOW YIELDING  BANK REFUSED TO GIVE

CREDIT
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2. CAPITAL INTENSIVE  OLD VESSEL

3. REGULATIONS  BIG SHARE FOR

FOREIGN VESSELS

 NO ROUTE
STRUCTURING

4. NO MORTGAGE LAW  NO FOREIGN

INVESTMENT
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 RESEARCH & DEVELOPMENT

RESEARCH

CONDUCTING RESEARCH TO FIND OUT THE REAL

SITUATION OF INDONESIAN NATIONAL SHIPPING AND
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HOW TO TAKE THE NECESSARY

SOLUTIONS……………………………….…………

DEVELOPMENT
……………DIRECTION TO INCREASE NATIONAL SHIPPING
FOR DOMESTIC AND INTERNATIONAL SHARING

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 3 OF UNIVERSITY OBLIGATION

1. EDUCATION
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2. RESEARCH
3. SERVICE TO
COMMUNITY

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 THE BENEFITS OF FOREIGN INVESTORS
( IF PARTICIPATING FOR BUILDING STRONG
INDONESIAN NATIONAL SHIPPING ENVIRONMENT )

1. OBTAINING FINANCIAL INTEREST

2. SELLING SHIPS
3. SELLING EQUIPMENTS FOR SHIPS
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TELECOMUNICATION AND NAVIGATION AIDS

4. BUILDING SHIPYARDS
5. ARRANGEMENT CONTRACT FOR CREATING
SEABORNE TRADE FOR INDONESIAN NATIONAL
NETWORKING
6. FEE FOR MANAGEMENT, ECONOMIC AND LAW
CONSULTANCY

…………… FOR THOUSANDS VESSELS IN

INDONESIA R&D 15
 Riza Citasuara

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