Small Shipyard Industry Asks Protection from Foreign Investor

Small Shipyard Industry Asks Protection from Foreign Investor

JAKARTA – Small shipyard industry producing vessels is anxious with foreign investors who will enter shipyard industry in Indonesia. They are worried their field is taken by foreign shipyard industry which can produce vessel in great scale.

Arie Surjono, Javaneseboats owner, said Indonesia’s vessel market is great since it has many and various needs. “Vessel is used for transportation to small islands, patrol vessel, fishing vessel, and tourism vessel,” Arie told Kontan on Wednesday (11/26).

According to Arie, the need over various vessels is predicted of 300,000 units per year. So far, vessel market is dominated by domestic shipyard. Arie worried domestic industry can collapse if foreign investors interfere. “IDR 2 billion or less vessel construction should be conducted by small shipyard,” Arie asserted.

Aries asked foreign or big shipyard to focus on making big vessels of millions US dollar.

Javaneseboat produces vessels with 5-18 meters length and 6-30 passenger capacity. Most of Arie’s customers are corporate such as Sinar Mas, Freeport, and Wilmar.

Arie’s anxiousness is also felt by Hasbi Assiddiq, Industry Ministry’s Maritime, Aerospace, and Defense Equipment Industry Director. He said small shipyard is prioritized for domestic industry. “I will coordinate with Investment Coordinating Board. This sector should only be for domestic since it has great market potential,” Hasbi said.

Moreover, Hasbi said he will ease vessel production process by giving imported component incentives and cutting bureaucracy. “Currently, there is Maritime Coordinating Ministry which will integrate various sector,” Hasbi said.

The current vessel industry complained long component import process for vessel production. “Component import takes three weeks. The long process occurs in Customs and Excise Office while vessel import is really quick only three days,” Arie said. (Kontan)