Sunday, 14 September 2014


Shipbuilding industry in Indonesia continues to grow rapidly, backed by investment climate that attracts foreign investors. The release of Presidential Instruction No. 5/2005 on the National Shipping industry Empowerment is also a driving force. Data of the Ministry of Industry stated the currently there are about 200 shipbuilding/shipyard industries in Indonesia which are able to produce new vessels or repair ships. Shipping industry is included in the category of strategic industries that have a bright prospect in the future. The number of vessels operating in Indonesian waters is one of the factors that cause this industry to keep moving.

However, the rapid growth of the shipbuilding industry cannot be benefited by the domestic shipbuilding industry cannot be benefited by the domestic shipbuilding industry operators. Because the shipbuilding industry was still hampered by production problem. Budi Darmadi, Director General of High Technology-Based Industry of the Ministry of Industry, in Jakarta, on Friday (august 8) considered that the length of time of ship production by domestic shipyard industry is one of the problems that inhibit the growth of ship production.

The domestic shipbuilding industry needs approximately one year to complete construction of one unit of ship. This time is relatively longer than shipbuilding industry in foreign countries, such as China who can complete the production within five months. Budi said that this matter became the consideration of consumers who prefer to import ships. Moreover, if ship procurement is needed quickly. When viewed in terms of competitiveness, the Minister of Industry believed that domestically-produced ships are no less competitive, both in quality and price. But domestic ship manufacturers still have difficulty to compete with foreign shipbuilding industry due to capital problem.

Budi believed that one contributing factor in the shipbuilding industry is the growth of domestic component industry. It is very important to develop component industry because in affects ship delivery and stability of ship prices. The growth factor of domestic component industry should be monitored by the government do that maritime stakeholders can improve the stability of ship price.

According to him, the implementation of cabotage principle from the government is very supportive to the domestic shipping industry. As an illustration, Presidential Instruction No. 5/2005 instructs the implementation of cabotage principle consequently to optimize the empowerment of the national shipping industry. Industrial sector is instructed to encourage the development of the shipping industry, including people-owned shipping industries, whether large, medium, small-scale industries, and cooperatives.

Indonesia is considered by the world as capable of producing ships of the best quality and the success has been recognized, so that many countries ordered ships from Indonesia. Director General of Sea Transportation of the Ministry of Transportation, Bobby R. Mamahit, explained that currently Indonesia at least 260 shipbuilding companies with a total production capacity to make new ships of 900,000 DWT.

Shipyard location in Indonesia is spreading in some regions, such as in Java, Sumatera, Borneo, and Batam. For Indonesia, ships play an important role as a transportation infrastructure in interisland connectivity. Indonesia, which territory is separated by waters, makes ships to have a role in connecting islands in Indonesia. Ships have a role to make the distribution of goods and people from one island to another in Indonesia, and ships that have a large capacity are increasingly capable of facilitating the distribution of transportation of goods and people in large numbers. (E)

Business New - August 13, 2014

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