Indonesia’s New Protectionist Rules Worrying For Free Trade Agreement With EU

European shipowners are opposing a decree Indonesia adopted recently. The new law imposes that certain commodities can only be transported for import or export by national maritime transport companies. Commodities affected are coal, crude palm oil, rice and goods for government procurement.

This new law is a clear measure of protectionism and will impact seriously European shipping companies that have longstanding access to this market. European shipowners also warn that it puts at risk the Indonesian’s business climate and confidence for foreign investors.

Representation Image – Credits: ec.europa.eu

Martin Dorsman, ECSA’s Secretary General comments: “In a time when the EU and Indonesia are negotiating on a free trade agreement the adoption by the Indonesian authorities of such a law is unacceptable. In view of this week’s bilateral trade talks, we have passed our concerns on to the European Commission and hope they will see a chance to question their Indonesian counterparts on this matter.”

Reference: ecsa.eu