Tuesday , 9 June 2015
Pipeline Technology
Breaking News

Shipbuilders welcome government plan to revive shipyard industry

JAKARTA (Rambu Energy) – The Indonesia Shipbuilding and Offshore Association (Iperindo) members said they welcome the government’s program to revitalize the country’s shipbuilding industry.

Chairman of Iperindo Eddy K. Logam was quoted by Bisnis Indonesia as saying that the government’s plan to revitalize the shipbuilding industry “is a positive signal.” He believes that the revitalization of shipyard industry, including replacing the old machines and equipment will stimulate the growth of the industry.

The government is believed to provide Rp10.8 billion to support the revitalization program. However, it is not clear yet how the funds will be channeled.

He however admitted that the government is yet to discussed with the association (Iperindo) over the revitalization program.

The country’s shipyard and shipbuilding industry has been stagnant over the past years due to lack of government support. Industry players blamed the government policy, saying that the imposition of import tax on shipbuilding components has made domestically made vessels to be less competitive compared to those in neighboring countries.

The government is preparing various incentives to the industry, including scrapping import tax on shipbuilding components. In addition, the shipbuilding industry has been centered in Batam, Riau province area. The government wants the shipbuilding industry to also spread to other parts of the country. (*)

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