Fuel Supply to the National Shipping Industry - Implementation

The Minister of Energy and Mineral Resources has issued Regulation No. 26 of 2006 as a means of implementing Presidential Instruction No. 5 of 2005 and to clarify the current regulatory framework on supply of fuels to the National Shipping Industry.

Simply, the Minister guarantees the supply of fuel to the National Shipping Industry pursuant to the prevailing laws and regulations and in accordance with the routes being sailed and the numbers of days at sea between ports and fuel depots. Some of the other conditions that determine the supply of fuel are that the ships are Indonesian flagged, the specifications of the ships, and the planned routes of operation are confirmed by the Director General. Furthermore, this is to be prioritized for ships transporting passengers, troop ships, community shipping, cruise liners, transportation of basic goods, and other strategic shipping. Essentially, these are shipping activities that occur within the territorial waters of Indonesia.