Business Data
Industry trend analysis - offshore shipping cabotage law change could hit Indonesia's oil and gas production
Indonesia has delayed passing into law changes to the country's offs hore shipping cabotage rules . The new law has been delayed by five months , as concerns s tarted to build in the industry that the need to have all vessels serving Indonesia's offs hore oil and gas projects flag g ed to Indonesia would have a negative effect on the country's oil and g as production levels . The sector's shipping demands are currently met largely by foreig n-flagged vessels . It is hoped that this pos tponement will give the shipping sector time to come to an agreement with the government that will allow the continued use of foreig nflagged vessels , at leas t in thes hort term. In the mid term we expect to see a drive to order vess els to serve the offs hore oil and gas indus try by Indonesian firms . We also as sert that foreig n firms may be able to deploy tactics to retain access to Indonesia's offs hore shipping sector.