Indonesian Shipping Sustainable Development Law Approach Through Cabotage Principle

Abstract

The national shipping industry plays an important role in the maritime sector because if its development performance can be supported and well-managed, the industry would increase Indonesian foreign exchange that would lead to achievements in economic development for the prosperity of Indonesian people. To achieve these goals, the cabotage principle with a legal basis of Law Number 17 the Year 2008 and Presidential Instruction Number 5 the Year 2005 on National Shipping Industry Empowerment, must be applied consequently by formulating necessary policies and steps. This paper will discuss the problems of cabotage application in the Indonesian shipping industry and the positive and negative impacts of the principle. The utilized research method is a normative method supported by secondary and primary data, which is further descriptively analyzed. The result of this research reveals that the application of the cabotage principle is regarded as a national economic driver in relation to the sea transportation sector because it provides a high opportunity for domestic ships to transport people and goods all over Indonesia. With the application of the cabotage principle, it is hoped that the Indonesian shipping industry can be able to act as the dominator in Indonesia, and national shipping industry development will consistently be improved on sustainable and continuous manners and bring a positive impact on the national economy and the prosperity of Indonesian people.