144 139
However, based on Ministry of Transportation Regulation No. KM 4 Th. 2005 dated 20 January 2009 concerning Prevention of Pollution from Ships ―Permen No. KM 4 Th. 2005‖, the Company should be able to demonstrate
that the pollution prevention equipment and tools arrangement construction in the vessels owned by the Company have complied with the requirements set forth in Permen No. KM 4 Th. 2005 referred to above;
therefore each vessel owned by the Company has to obtain the National Oil Pollution Prevention by Ships Certificate ―Pollution Prevention Certificate‖. In that regard, based on the inspections conducted by the
Directorate General of Sea Transport, the pollution prevention equipment and tools arrangement constructions in the vessels owned by the Company have complied with the requirements and have obtained the Pollution
Prevention Certificate. Presented below is the list of certificates obtained by the Company:
NO DOCUMENT
ISSUING AGENCY VESSEL NAME
REGISTERED PORT VALID UP TO
1 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI
ANINDYA JAKARTA
20022016 2
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
MT. GOLDEN PEARL XIV
JAKARTA 15052015
3 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ANGELIA XVI
BANTEN 22072016
4 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. STEPHANIE XVIII
JAKARTA 16042017
5 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ANDRIANA XX
BATAM 29072016
6 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SILVIA XII
JAKARTA 15032015
7 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI
CHEMICAL I JAKARTA
08052017 8
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
MT. SOECHI CHEMICAL III
PALEMBANG 29092016
9 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI
CHEMICAL V BANTEN
26082016 10
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
MT. SOECHI CHEMICAL VII
JAKARTA 20062016
11 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI
CHEMICAL IX JAKARTA
14102015 12
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
MT. SOECHI PRESTASI
JAKARTA 09122016
13 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI PRATIWI
JAKARTA 03032015
14 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SUKSES XI
JAKARTA 23122016
15 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ALISA XVII
JAKARTA 06122016
145 139
NO CY
AME D PORT
TO IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE IL
TE
140
NO DOCUMENT
ISSUING AGENCY VESSEL NAME
REGISTERED PORT VALID UP TO
16 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. SOECHI
CHEMICAL XIX JAKARTA
04102015 17
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
MT. SOECHI CHEMICAL XXI
JAKARTA 16042017
18 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ALICE XXV
JAKARTA 03062015
19 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ALMIRA XXII
JAKARTA 28102014
20 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION MT. ASUMI XXVI
JAKARTA 20032017
21 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION SUCCESS VICTORY
JAKARTA 25092015
22 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION GAS SOECHI XXVIII
JAKARTA 12042016
23 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION SUCCESS PIONEER
JAKARTA 04102015
24 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION SUCCESS
CHALLENGER XXXVII JAKARTA
21052016 25
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
SUCCESS PEGASUS JAKARTA
15042016 26
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
ALINA XXIII JAKARTA
07022016 27
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
ARENZA XXVII JAKARTA
04012016 28
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
SOECHI ASIA XXIX JAKARTA
18082016 29
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
SUCCESS ENERGY XXXII
JAKARTA 22112015
30 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION SUCCESS MARLINA
XXXIII TOKYO
10052015 31
INTERNATIONAL OIL POLLUTION PREVENTION
CERTIFICATE DIRECTORATE
GENERAL OF MARINE TRANSPORTATION
SUCCESS OCEAN XXX
JAKARTA 01072015
32 INTERNATIONAL OIL
POLLUTION PREVENTION CERTIFICATE
DIRECTORATE GENERAL OF MARINE
TRANSPORTATION SUCCESS TOTAL
XXXI JAKARTA
22062015
146 141
9. Good Corporate Governance
In order to safeguard the interest of all stakeholders and increase value to shareholders, the Company always implements good corporate governance in its business activities. The Company is committed to adhering to
transparent business ethics in accordance with the prevailing laws and regulations. In that regard, the Company has established a Corporate Secretary and appointed an Independent Commissioner and an Independent
Director. In addition, the Company has established an Audit Committee as required by the prevailing law and regulations.
10.
Corporate Social Responsibility CSR
The Company is committed to carrying out sustainable corporate social responsibility CSR. Several examples of CSR programmes carried out by the Company are:
1. Under a program implemented in order to assist Indonesian society in need and to maintain a better
environment, the Company cooperated with Tzu Chi foundation and DAAI TV to help the society in need through, among others, the following:
a. Helping flood victims activities in 2012 b. Mangrove tree planting activities
Total cost incurred by the Company was approximately Rp 500 million in 2011 and Rp 620 million in 2012.
2. To improve human resources and the future of the nation, in particular the sonsdaughters of the armyCivil Servant of the Indonesian Navy, the Company granted scholarships to the high achieving sonsdaughters of
the armyCivil Servant of the Indonesian Navy, evidenced by the signing of Memorandum of Agreement dated 17 July 2013, with a total funding of one billion Rupiah.
147 141
X. PROSPECTS OF SHIPPING AND SHIPYARD INDUSTRIES IN
INDONESIA
1. General
As the largest archipelagic country in the world, with the second longest coast line after Canada, shipping and shipyard service activities play significant roles in Indonesia’s trading activities. Indonesia is located strategically
in the middle of the main route of world trading. The combination of 240 million population the fourth largest in the world, high demand for marine transportation Indonesia, as an archipelagic country boasts a total of 17,000
islands, and strong domestic demand as a result of economic growth 5-7, even during the slowdown in the world economy, creates bright prospects for shipping and shipyard industries.
In shipping industry, the easy access for foreign-flagged vessels has hindered the growth of domestic shipping companies, until the Cabotage Principle policy was introduced in 2005. The Cabotage Principle is a government
regulation stipulating that all goods shipment in Indonesia must be carried out by Indonesian-flagged vessel. This policy is commonly implemented in other countries, including in the United States through the implementation of
US Jones Act.
Since then, domestic shipping companies have been growing rapidly, in line with the development of domestic captive market, with estimated total investment of USD 16 billion as per Indonesia National Shipowners
Association’s INSA data. The policy will continue to benefit domestic shipping companies Indonesia, where the volume of national shipping continues to grow, in line with the growth in inter-island, regional and international
trading. The revocation of Cabotage Principle exemption on large scale vessels servicing the offshore oil and gas industry will also increase the number of domestic shipyards with the capacity to service those types of vessels,
whereas shipping companies chartering the said types of vessels will have exclusive access to a captive market with continuously growing demand.
2. Shipping and Shipyard Industries Development in Indonesia 2.1. Shipping Industry Development
The historical development of shipping industry in Indonesia is reflected by the following indicators: Based on Ministry of Transportation data in 2013, the number of fleets from 2005 to 2013 has doubled,
from 6,041 units to 12,972 units. Indonesian fleet capacity has tripled from 5.67 Gross Tonnage GT in May 2005 to 17.89 GT in July
2013. Total shipping companies has increased from 2,071 companies in 2005 to 3,328 companies in 2012.
Total domestic marine cargo increased from 206,339,130 tons in 2005 to 355,023,728 tons in 2012, with total market share of national shipping companies increased from 55.5 in 2005 to 99 in 2012. The
market share of national shipping companies in export import transportation has doubled from 5 in 2005 to 10 in 2012.
Commercial shipping sector small-scale shipping, pioneer shipping and special shipping is estimated to have recorded the highest growth, i.e., tripled from 3,167 units in 2005 to 8,738 units in 2012.
With the implementation of cabotage principle, domestic shipping companies are able to control substantially all market share of domestic cargo transportation.
Shipping industry in Indonesia has continuously grown rapidly each year, in line with the increase in Indonesian population, the development of middle class income, the development of eastern Indonesia area and the
discoveries of new oil and gas fields. Furthermore, considering Indonesia is an archipelagic country, shipping is practically the most economical and feasible inter-island transportation mode for large scale cargo.
For example, the demand for vessels from Pertamina as the mandate holder of domestic field distribution has continuously increased from year to year. Pertamina’s refinery locations that are generally established in the
densely populated western Indonesia require Pertamina to use vessels to distribute its fuel to regions such as Kalimantan, Sulawesi, especially Papua and others.
However, prior to the implementation of cabotage principle in the 2005, the rapid developments were largely enjoyed by foreign shipping companies. Large size vessels in particulars are mostly foreign-flagged as they
require significant investments. As the government came to realize the size of potential held by this marine transportation market and the
important roles played by commercial ships in national security and the distribution of energy and cargoes across islands within the country, the government implemented the cabotage principle in 2005, which requires the use of
Indonesian-flagged vessels for domestic cargo transportation. Since then, within the period between 2005 – 2012, domestic shipping companies have been in a race to invest in
Indonesian-flagged vessels to replace foreign vessels, which are mostly large-size.
