ENFORCEMENT OF CABOTAGE PRINCIPLE ON TERRITORIAL SEA WITHIN THE INDONESIAN SOVEREIGNTY PERSPECTIVE

Abstract

The many foreign vessels that only transverse without making any stop have made the
activities of the national shipping industry sluggish. Additionally, most transport of goods to
foreign countries has depended upon importers’ vessels. This has prevented numerous cargo
and logistics shipping companies from conducting shipping activities. The operating vessels
suffer from loss due to lack of goods being transported. The collection of data regarding the
condition of domestic shipping business was carried out by employing the normative legal
methods. The enforcement of Cabotage Principle is set forth under the Law Number 17 of
2008 on Shipping. This principle aims at protecting the state sovereignty over territorial sea in
the security-defence, economic and sociocultural aspects. The national shipping has
considerable potential to maintain the state sovereignty. Cabotage Principle significantly
impacts on the national shipping industry. Modes of sea transport, particularly vessels, have
an important role for Indonesia, an archipelagic state. Modes of sea transport are required for
transporting goods and passengers or for conducting offshore activities in Indonesian waters.
In order to provide domestic shipping companies with a protection and to promote shipping
business, it is deemed necessary to strictly enforce the Cabotage Principle to maintain the
Indonesian sovereignty.