Witholding Tax art 15 Shipping Cost will Rise

JAKARTA Performer shipping estimate income taxes (income tax) of Article 15 upon the receipt of revenue from the imposition of transport costs (freight) through domestic sea increased with the implementation of cabotage. Increasing the value of corporate income taxes paid by the national shipping companies to the country caused greater mastery of ships flying the Red and White on marine transportation activities in the country which has now reached 90.2% of the total share of domestic cargo.

Based on data from the Ministry of Transport, during the 2005 to 2009, control of foreign-flagged ships to load in the country is declining. In 2005, foreign transporting 91.88 million tons of cargo by freight costs of U.S. $ 1.8 billion. A year later reduced to U.S. $ 1.7 billion with a cargo of 85.44 million tonnes, while during 2007 and 2008 foreign ships still carry each 79.21 million tonnes and 50.12 million tons with each freight costs of U.S. $ 1, 6 billion and U.S. $ 1.0 billion.

Until late 2009, foreign-flagged vessels still carry as many as 28.1 million tons of commodities in the domestic transportation fee of U.S. $ 560 million. Next year 100% of commodities in the country shall be transported in accordance with Law No national vessels. 17 year 2008 about shipping.

Cabotage is a policy that requires the activities of transport by sea transportation in the country using the White and Red-flag vessels manned by a crew citizen of Indonesia.

This policy is based on Presidential Instruction No. 5 year 2005 regarding the National Sailing Industry Empowerment and KM No.71 year 2005 about the activities in the country Goods Transportation and Law. 17 year 2008 about shipping.

Until 2009, Indonesia managed to replace 13 foreign vessels for the transport of the oil and gas commodities, general cargo, coal, container, timber, rice, palm oil, fertilizer, cement, minerals, grains, liquid cargo, vegetables, fruits and fresh fish and grain crops.

This year, the government is targeting a foreign-flagged ships in the offshore transport sector (off shore) can be replaced by national fleets that starting January 1, 2011 there was no foreign-flag ships engaged in domestic transportation.