The cabotage principle exemption is enacted by the Indonesian government in 2015 through the Regulation of Minister of Transportation No.PM 121 of 2015. This regulation is exempted a cabotage restriction provision in the Article 8 Act No. 17 of 2008 on the Voyage. Previous legal research has concluded there are significant legal problems regarding the concerned regulation such as a derogation act of sovereignty and violated legislation procedure law.
This study aims to find out whether the cabotage principle exemption has any legal problems in the perspective of international law particularly in regards of sovereignty and international customs. Another aims is to find out whether after 5 years, there are any advantages gained by the Indonesian government with the implementation of cabotage principle exemption particularly in port of Belawan.
This research is in the form of normative legal research stipulate a systematic exposition by comparing the existing rules with the international conventions and international customs. Then analyzing the result of implementation through interview and acquiring statistical data.
The results showed the cabotage principle exemption policy in Indonesia is not has any legal problems with the international law particularly international law of the sea in terms of international treaties and international customs. In regards of the advantages, for the port of Belawan, government has gained an increase of state budget income from state tax and non-tax revenue resulted from the moored of foreign cruise ship and the spending of foreign tourist in Indonesian merchant.
The suggestion from this research are the Indonesian lawmakers needs to revise the Indonesian voyage law to accomodate an exemption for cabotage restriction policy so there will not be any conflict arise in the future as cabotage principle exemption is actually acceptable in the perspective of international law. In regards of the advantages, it is suggested for the government to increase the development of port of Belawan and North Sumatra tourist site in order to attract more foreign cruise come to port of Belawan and fulfilled the aim from the stipulation of cabotage principle exemption.