Author(s)

Nurfaika Ishak, Meica Prameswari

Corresponding Author

Nurfaika Ishak

ABSTRACT

Cabotage principle is a principle recognized in maritime law, especially in the shipping. The principle means that domestic shipping is entirely the right of the domestic state. Domestic state is entitled to forbid and restrict foreign vessel to sail and to conduct business in the area of the state (privilege). In this case, accordance with the sovereignty of each independent state, every vessel especially foreign flag vessel has to obtain a permit to across and to enter the territory of a state. Based on Indonesian regulation of Maritime Law and the Presidential Instruction No. 5 of 2005 concerning the Empowerment of the Shipping Industries, Indonesia has implemented and adopted the cabotage principle. Other regulation related with cabotage principle was maritime law No.17 of 2008 concerning the Shipping Law. The purpose of this study was to analyze factors that affect implementation of cabotage principle in Indonesia territory. The approach used is statute and conceptual approach. Then, the method used is case study which also talks about other country. The result of this research shows that concept of maintaining sovereignty of the state and promoting the national economy was a factor that become the background of implementation of the cabotage principle. Whereas, the inhibiting factors that affect implementation of cabotage principle such as the limitation of facilities and infrastructure, and the lack of human resources quality and quantity.

KEYWORDS

Cabotage principle, shipping, Indonesia, maritime law.