JAKARTA, April 18 Asia Pulse - At least 70 members of the Indonesian shipowners' association INSA plan build 300 units of ships valued at US$4billion this year, its chairman Oentoro Surya said.

Surya said the 70 local shipping companies are prompted by the recentlyannounced policy of the government to empower domestic shipping andshipbuilding industries.

The government recently announced its decision on the cabotage principleunder which foreign shipping companies are not allowed to carry domesticcargoes and goods imported by the government.

Surya said the types of ship needed most by the country are coal tugboats,crude palm oil (CPO) tankers and bulk ships for industrial basic materialsand general cargoes.

He said the prices of new ships at present are three time higher than lastyear.

The 300 units of ship to be built this year are expected to be sufficientto fully implement the cabotage principle.

Foreign ships still handle the transport of 40 per cent of Indonesiandomestic cargoes and 95 per cent of international cargoes.

(ANTARA)