THE IMPLEMENTATION OF CABOTAGE PRINCIPLE AS INDONESIA'S STRATEGY TO SECURE ITS MARITIME ECONOMIC DIMENSION: MAERSK INDONESIA AS A CASE STUDY (2011- 2015)

Abstract

As an archipelagic country, Indonesia has abundant resources for its people. Indonesia recognizes the importance of controlling international trade and economy through the sea and has an impact on Indonesia's reputation in the eyes of other countries. However, reliance on foreign ships has greatly affected Indonesia's efforts to have strong maritime powers. Therefore, the cabotage principle was introduced to prevent or reduce dependence on foreign ships, to promote economic growth, protect the sovereignty of the state, especially in the maritime industry, and create business opportunities for local enterprises. At the beginning of the principle introduced, oil and gas companies see no threat if these principles are applied because the original principles apply only to passengers and goods. The Indonesian government further expanded the regulation to include oil and gas activites.. Although the cabotage principle is an attempt to reclaim or reclaim the marine power of foreign players, in practice it is not 100% running. This thesis is a research about how the application of Cabotage Principle in Indonesia. The author uses qualitative methods to construct narrations and analyzes from various news sources, journals and books.