Cabotage Principle as the Realization of National Freight Protection in Free Trade

Abstract

Realizing independence in national freight is a must because independence can be a maritime sovereignty milestone. While, Indonesia’ overseas freight is still approximately 90% dominated by foreign freight, for domestic freight already using Indonesian ships, although there are still foreign ship leases and crew salaries. This research uses a legal research that is normative and empirical. The research was conducted in Makassar with consideration as a port-city and the gateway of Eastern Indonesia. The results show that the principle of cabotage has not been fully harmonized with other laws and regulations because for the regulation of oil and gas (offshore) is still given an easy, especially the deadline for foreign use permits in Indonesian waters. Similarly, for overseas freight, most of them still use foreign ships rather than Indonesian ships. Provisions that regulate the principle of cabotage in various fields are basically well, but for the oil and gas sector, it is expected that the government can be more consistent and consequently regulate the deadline of the use of Indonesian-flagged ships. Uphold the law, sanctioning to ship owners or foreign ship operators and government apparatuses who grant permission to use foreign ships whereas Indonesian ships are available. The function of law as a means of community renewal is expected to maximum, both in terms of substance and its implementation.

Keywords: Cabotage Principle, Free Trade, Marine, National Freight