According to PAL’s production director, Edy Widarto, the move is in response to the increasing demand for vessels from domestic and foreign clients, intended both for commercial and military purposes.
“PAL’s board of directors will travel to Jeddah to finalise the planned collaboration. As of now, the plan is still under discussion,” Edy said, declining to provide more details .Aside from the production deal, PAL is also seeking a funding deal from its partner shipyards, including in Hong Kong.
“If the Defense Ministry were to allocate three shipbuilding projects for the Navy every year, PAL’s maximum production capacity would be reached. Therefore, PAL needs to cooperate with other shipyards overseas to sustain its production of ships and meet the rising demand,” Edy added.Deputy Defense Minister Syafrie Sjamsoeddin has said that the Navy needed up to 40 fast missile boats (KCR), each measuring 40 by 60 m, to meet its minimal needs by 2024.
Meanwhile, in the domestic market, PAL is cooperating with several regional administrations to build ship-maintenance facilities. The facilities will be built in Cilegon, Banten, and Lamongan, East Java.The Cilegon administration has offered 50 hectares of land for the construction of one of the facilities, while PAL has also been asked by the government to expand its operations to accommodate an oil and gas development project in Lamongan. Apart from commercial and military vessel contracts, PAL also handles the construction of offshore platforms.
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