INDONESIA OPENS SUBSIDIZED CARGO SHIPPING PLAN.
The Transportation Ministry of Indonesia launched a program for subsidized cargo shipping services to remote areas as part of government efforts to reduce price disparity in the archipelagic country and support the maritime highway initiative.
For the time being, state-owned shipping firm PT Pelayaran Nasional Indonesia (Pelni) will operate three cargo ships to serve a number of destinations that include Timika and Serui in Papua, Tual in Maluku and Natuna in Riau.
Two ships will sail from Tanjung Priok, Jakarta, while the third will sail from Tanjung Perak, Surabaya.
The government has allocated rupiah 27 billion (US$1.98 million) in a subsidy program labeled public service obligation (PSO) for the operation of the three ships until December. The ships will have a capacity of 115 twenty-foot equivalent units (TEUs) each.