ENHANCES SAFETY NAVIGATION THROUGH

THE IMPLEMENTATION OF THE VOLUNTARY PILOTAGES

SERVICES IN THE STRAITS OF MALACCA AND SINGAPORE

REPUBLIC OF INDONESIA

MINISTRY OF TRANSPORTATION

DIRECTORAT GENERAL OF SEA TRANSPORTAION

CF 10/5/1/2

OUTLINE

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I. Background:

a. Profile of The Straits of Malacca and

Singapore (SOMS)

b. Legal Aspect

II. Traffic in The SOMS

III. Why Need Pilotages in The SOMS

IV. The Routeing of Implementastion of The

Voluntary Pilotages Services in The SOMS

V. Resources of Pelindo 1

VI. Competitive Advantages of Pelindo 1

VII. Strategic Plan to Implement The VPS in SOMS

VIII. Video History of The Pilotages in The SOMS

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1.a. Profile of The Pilotages in The Straits of Malacca and Singapore (SOMS)

I. BACKGORUND

1. As an Exclusive Economic Zone of the three Litoral states, high economic

activities with more 300 Ports of : cargo, passanger, commercial, non

commercial, fishing, government, military Naval base, traditional and private

port.

2. A long channel of the straits ( 600 NM), with some narrow and shallow water,

as an hazardous area danger for safety of navigation.

3. Connecting Indian ocean to South China sea, suddenly haze even fog appear

frequently, danger to navigation.

4. Traffic separated scheme (TSS) yet not use effectively, due to too many

fishing boat and traditional boat using the same channel.

5. As a transit passage with some piracy accidents were happened.

6. Is the 3rd busiest straits in the world; passing one-third world trade, the main

line for the China, Japan, Korea and some American's Oil and Gas needs.

1. IMO Resolution No. A. 375(X), 1977 about Traffic Separation Scheme (TSS) at Straits of Malacca and Singapore (SOMS)- Establishing the Traffic Separation Scheme (TSS) of Malacca and Singapore

Straits.- DDV & VLCC using TSS is recommended to use a Pilot from the respective

countries when they become available.

2. IMO Resolution No. A. 476(XII), 1981

Implemented the Traffic Separation Scheme (TSS) start from One fathom

Bank up to Horsburgh.

3. Congress IMO-MSC 69th Session, 1998, Annex VII

Stated DDV & VLCC navigate on TSS is recommended to use pilot services

from the respecting countries, when they become available.4. Result of TTEG 41st : Guidelines to Implemented the Voluntary Pilotage Services

in the Straits of Malacca and Singapore (Guidelines to Implemented the VPS in SOMS). 4

1.b. Legal Aspect of The Pilotages in The Straits of Malacca and Singapore

(SOMS) - International Law

I. BACKGORUND

1. Constitution No. 17, 2008 concerning of Shipping,

2. Goverment Regulation No. 5, 2010 concerning of Navigation,

3. Goverment Regulation No. 21, 2010 concerning of Maritime EnvirontmentProtection,

4. Ministry of Transportation Regulation No. 57, 2015 concerning of Pilotage

5. Decree of Director General of Sea Transportation No. BX-428/PP-304 onNopember 25, 2016 concerning of Granting Permission To PT PelabuhanIndonesia I (Persero) To Implement The Voluntary Pilotage Services in theStraits of Malacca and Singapore.

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I. BACKGORUND

1.b. Legal Aspect of The Pilotages in The Straits of Malacca and Singapore

(SOMS) - Indonesia Law

II. Traffic In The SOMS

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Others : small tanker vessel (non-deep draft vessel), cargo vessel, container vessel, ro-ro, passenger vessel, livestock carrier, tug/tow,

government vessel, fishing vessel, dan lainnya.

Projection of CAGR Assumtion per year is : 2,13%, which is :

-VLCC/ULCC (deep draft); 3,95% per year.

-LNG carrier; 2,83% per year.

-Bulk carrier; 5,21% per year.

-Others; 0,63% per year.

Sources : (Marine Department Malaysia)

Traffic 2009 - Nopember 2016

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PROJECTION 2017-2036

CAGR

2,13%

II. Traffic In The SOMS

Ships That More in Need The Pilotages in The SOMS

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Others : small tanker vessel (non Deep Draft Vessel - non DDV), cargo vessel, container vessel, ro-ro, passenger vessel, livestock carrier,

tug/tow, government vessel, fishing vessel, dan lainnya.

Ships Need

Pilotages in 2016 (7.535)

VLCC-ULCC

(DDV)

5.534

LNG Carrier

(10%)

405Bulk Carrier

(0%)

1.596

Traffic in The SOMS

in 2016 (82.846)

VLCC/ULCC

(DDV) 5.534

LNG Carrier 4.047

Other Ship

57.307

Bulk Carrier 15.958

III. Why Need The Voluntary Pilotage Services in

Straits of Malacca and Singapore

1. What is the impact if the Straits of Malacca andSingapore is blocked due to shipwreck in thenarrowest location?

2. Who will lose if the Straits of Malacca andSingapore can not be passed by ship?

3. How much loss to bear if the Straits of Malaccaand Singapore can not be passed by ship?

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YEAR PIRACY/ROBBERY ACCIDENTS

2010 27 74

2011 16 88

2012 16 60

2013 23 45

2014 23 35

2015 20 29

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Sources: IMB, MSC, Indonesian Navy and Others

every week

III. ACCIDENTS AND PIRACY IN THE SOMS

(2010 - 2015)

III. Why Need The Voluntary Pilotage Services in

Straits of Malacca and Singapore

1. More safety, secure and comfort for the ship owners and themasters, also any parties engaged, whenever their vesselspassing by the straits. Pilotage will be operate by expertPilots who have the experience, skill and knowledge aboutthe straits of Malacca and Singapore with well.

2. Will be supervises by 3 Littoral State Authority, by the closeand direct communication between pilot in duty with anOfficer in charge.

3. According IMO Recommendation for using Pilot, as a legacymatter to claim the insurance, whenever a ship sail thestraits with Pilot onboard.

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IV. The VPS in SOMS Routeing

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Pelindo 1 Provides 2 (two) route for The Voluntary PilotagesServices in the SOMS, such as:

1.Transit Passage are the ships passing thru the straits ofmalacca and singapore with out visit any port around it, voyagewith east bound passage or west bound passage, betweenBerhala Island with Pilot Boarding Ground (PBG) at coordinate03055.100'N/099039.000'E to Horsburgh with Pilot BoardingGround (PBG) at coordinate 01017.428'N/ 104014.389'E; andother wise.

2.Port Destination/Port Origin are the ships go to or originatefrom any port around at straits of malacca and singapore, withP i l o t B o a r d i n g Ground at west side at coordinate03055.100'N/099039.000'E and Pilot Boarding Ground at eastside at coordinate 01017.428'N/104014.389'E.

IV.a. Route of Transit Passage

BelawanPulau Berhala

One Fathom Bank

Horsburgh

Pulau Sabang

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IV.b. Route of Port Destination/Origin

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IV.a. Pilot Boarding Ground at West Side

(Pulau Berhala)

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IV.b. Pilot Boarding Ground at East Side

(Horsburgh)

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V. PELINDO 1 RESOURCES

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1. Human Resources (The Pilots), owned by Pelindo 1:

a. Deep Sea Pilot Sertificate: 15 peoples

b. First Class Pilot: 35 peoples

c. Second Class Pilot : 60 peoples

d. In 2017, Pelindo 1 will recruit 2 (two) Pilots who have experience indeep sea pilot services in other area (Europe or Australia).

2. 8 units Pilot Boat, placed at:

a. 2 Units at Belawan Port

b. 1 Unit at Kuala Tanjung Port

c. 2 Units at Dumai Port

d. 1 Unit at Sei Kolak Kijang Port

e. 1 Unit at Tanjung Balai Karimun Port

f. 1 Unit at Batam Port.

V. PELINDO 1 Resources

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3. Pilot Station and other equipments and tools:

a. Lhokseumawe Pilot Station

b. Belawan Pilot Station

c. Kuala Tanjung Pilot Station

d. Dumai Pilot Station

e. Tanjung Balai Karimun Pilot Station

f. Batam Pilot Station

g. Tanjung Uban Pilot Station

h. 2 Units Satelite Cellphone

i. 3 Units Pilot Portable Unit (PPU)

4. Pelindo has fully complied with all the requirements of the Guidelines toImplemented the Voluntary Pilotage Services in the Straits of Malaccaand Singapore.

5. 3 Vessel Traffic System (VTS) Station, located at: Belawan, Batam andDumai.

VI. Competitive Advantages of Pelindo 1

1. Knowledge of the Pilots are more familiar to Straits of Malacca-Singapore

(local expert advantages), Pelindo 1 have 17 Ports facing to (located at) the

Straits of Malacca and Singapore.

2. Pelindo 1 is the one and only company (owned by the Indonesia

government/State Own Enterprise) designated by the Government of

Indonesia to provide the VPS in SOMS.

3. In Pelindo 1 area, especially those directly to the SOMS, There are 35

Indonesia National Security Facility, They are 21 Indonesian Navy Station, 7

Indonesian Marine Police Station and 7 Indonesian Coast Guard Station,

which will be ready to provide special assistance (or special emergency

quick response) for the ships which got the pilotage services in the SOMS.

4. With Pilotages's distances farther from TSS, Pelindo 1 offers a more efficient

and flexible tariff.

5. Pelindo has been serving VPS since May 2015 until now, with one of the

largest oil companies in Indonesia (PT British Petroleum Berau).

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VII. Strategic Plan to Implement

The VPS in SOMS

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RENCANA KERJA STRATEGIS JASA PEMANDUAN SELAT MALAKA - SELAT SINGAPURA

NO URAIAN 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

1 Increase of Customers (Company) 2 2 2 3 3 2 2 2 2 1

2 Pilots Needs (Person) 9 16 24 41 60 81 103 127 152 180

3 Recruitment of Expatriat Pilots 1 2 2 2 2 1

4 Pilot Boat and Other Equipment

a. Pilot Boat - Accumulation (Unit) 2 2 3 3 3 3 3 3 4 4

b. Helicopter - Accumulation (Unit) - - 1 1 1 2 2 2 2 2

5Build and Improve an Operational System Based on IT

√ √ √ √ √ √ √

7Standardization of Occupational Health and Safety System (SMK3) OHSAS 18001 and ISO 45001: 2016

√ √ √ √ √ √ √ √ √

8 Cooperation with Oil Producing Company 2 2 1 1 1

9Cooperation and joint marketing with International Marketing Agent

√ √ √ √ √ √ √ √ √ √

10 Cooperation with Maritime Association INSA IMPA & INTERTA

NK0P&I Club ICS

IMO & IPTA

11Cooperation with Indonesian National Security

√ √ √ √ √ √ √ √ √ √

12 Have Representative Marketing Singapu

raDubai

13Seeking the formation of Joint Pilotage Board and Operation with Malaysia and √ √ √

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VII. Strategic Plan to Implement

The VPS in SOMS

RENCANA KERJA STRATEGIS JASA PEMANDUAN SELAT MALAKA - SELAT SINGAPURA

NO URAIAN 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

1 Increase of Customers (Company) 2 2 2 3 3 2 2 2 2 1

2 Pilots Needs (Person) 209 241 275 293 313 333 355 378 402 428

3 Recruitment of Expatriat Pilots 2 2

4 Pilot Boat and Other Equipment

a. Pilot Boat - Accumulation (Unit) 5 5 6 6 7 7 8 8 9 9

b. Helicopter - Accumulation (Unit) 2 2 2 2 2 2 2 2 2 2

5 Build Operational System Based on IT √ √ √ √ √

7Standardization of Occupational Health and Safety System (SMK3) OHSAS 18001 and ISO 45001: 2016

√ √ √ √ √ √ √ √ √ √

8 Cooperation with Oil Producing Company 1 1

9Cooperation and joint marketing with International Marketing Agent

√ √ √ √ √ √ √ √ √ √

10 Cooperation with Maritime Association √ √ √ √ √ √ √ √ √ √

11 Cooperation with Indonesian National Security √ √ √ √ √ √ √ √ √ √

12 Have Representative Marketing Singapura Dubai

13Seeking the formation of Joint Pilotage Board and Operation with Malaysia and Singapore

√ √ √

14 Seeking the Guidance VPS in SOMS Approved IMO √ √ √

15 Following international maritime activities √ √ √ √ √ √ √ √ √ √

Thank You for Your Kind Attention

REPUBLIC OF INDONESIA

MINISTRY OF TRANSPORTATION

DIRECTORAT GENERAL OF SEA TRANSPORTAION