Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Indonesian state-owned companies urged to use local yards

Indonesian state-owned companies urged to use local yards
Indonesian shipbuilders once again renewed calls for state-owned enterprises (SOEs) to buy local ships, local media reported.

According to 2014 data, more than 90% of the more than 14,000 Indonesian-flagged vessels are not built locally.

“We need to keep market [demand] going, starting with SOEs, which don’t buy a significant number of locally made ships,” Indonesian Shipbuilding Association (Iperindo) chairman Eddy Logam was quoted as saying.

Government agencies such as the Transportation Ministry, which has ordered about 150 coastal, navigation and transfer ships, and the Maritime Affairs and Fisheries Ministry, which has ordered more than 1,000 fishing ships this year, make up the bulk of orders from local yards while the number of ships ordered by SOEs is insignificant, he added.

Eddy said SOEs should set an example and follow government guidelines to use locally-made ships. President Joko Widodo has committed to revamping the local shipbuilding industry and instructed government ministries to procure only from local yards.

Incentives have also been given, with shipbuilders benefitting from tax breaks such as zero-value added tax and lower income tax.

Meanwhile, the local industry got a boost from the recent launch of Indonesia's first locally-made electric-powered vessel. The 9,300 dwt cement carrier Iriana was launched at the yard of Sumber Marine, in Tanjung Ucang, Batam.

The 117 m vessel was ordered by shipping service provider Pelayaran Andalas Bahtera Baruna. It has a service speed of 10 knots.

“This proves that we should no longer doubt local capability to build international standard vessels. There are many examples of them,” Eddy said.

The Iriana named after Indonesian First Lady Iriana Joko Widodo.

The building of the Iriana took one year and involved 800 workers. Most of the steel came from Krakatau Posco.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.