Government of Indonesia has a grand design to establish of Sea Toll Programs to improve connectivity, by increasing the capacity of 24 seaports (consist of 19 seaport feeder and 5 seaports hub).
We strongly encourage that companies consider the investment opportunities not only in sea port infrastructure, but also on ship building industry. Within 5 (five) years to come, Indonesia needs an additional around 1,500 ship units with an estimated cost of investment of 13.4 Billion USD
Since, the principle of cabotage exist in Indonesia in 2015, that was increase 7.183 of national ships, or 6.041 ships in 2005 to 13.000 ships in 2014, which is 30% of the total ships are above 20 years old. If we assume, the lifetime of ships is around 30 years, therefore in the next 20 years maritime industri Indonesia will replace the old one with the new one about 2.154 ships.
Therefore, we see that Shipbuilding Industry Indonesia is very prospective industry, but still requires some improvements to increase their competitiveness. In order to build a ship in Indonesia, 70% components come from import goods, and only 30% of the components produced in the country. In the term of the time, Ship construction time is still time consuming where construction of 10,000 DWT tanker needs to be completed within 18 months, while in Korea, a 260,000 DWT tanker can be completed in just 9 months.
Currently, there are about 250 shipbuilding company in Indonesia with production capacity reach to 1 million deadweight tonnage/year for the construction of new ships and that estimate 12 million deadweight tonnage/year for reparation.