Cabotage And Its Impact In Indonesia

Cabotage principles were implemented when the domestic shipping industry in Indonesia almost collapsed as a result of foreign vessels engaging in coastwise transportation. The Indonesian government implemented the Cabotage restrictions and Indonesia's shipping and offshore marine industry underwent major changes since the introduction of the Maritime Law No 17 of 2008 which was aimed at providing business opportunities and greater market share to Indonesian companies. Cabotage is the principle regulating shipping activities which takes place within a country's waters and recognises that a country is entitled to restrict the activities of foreign vessels operating within its waters.