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Abstract-This paper argues that Cabotage policy as a non-tariff barrier has harmed the domestic economy and is inconsistent with the premise of trade liberalisation agenda. The effect of Cabotage policy limits market access and has formed monopoly in the shipping industry. The policy might increase efficiency in term of technology and consolidating resources in one participant of the industry but does not improve the overall welfare the industry. This paper proposes a mid-way-out approach by taking incremental steps towards change and requires a committee system to review and streamline the Cabotage policy. We named the committee as logistic committee that envisioned working on towards liberalizing the transportation and logistics industry. It is proposed that the committee decision as binding and as primary source of policy making input.Index Terms-Cabotage policy, committee systems, incrementalism, protectionism.

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