Indonesia's shipbuilding industry expands with output up 15% as localized demand drives growth.
Recently, the Indonesian Shipbuilding and Offshore Association (Iperindo) noted that driven by continuously strengthening domestic market demand, Indonesia's shipbuilding industry achieved an output growth of approximately 15% this year compared to last year. Iperindo Chairperson Anita Puji Utami stated that an increasing number of Indonesian shipping companies have recognized the importance of using domestically built vessels. Currently, the overall development prospects for Indonesia's shipbuilding industry remain optimistic. "Next year, we expect the fishing vessel and other shipbuilding markets to grow by at least another 10%, which will further support national economic growth," she said. She also mentioned that aside from the increase in output, the overall scale of Indonesia's shipbuilding industry has expanded by about 30% over the past three years.
Currently, Iperindo has 265 member companies covering various related sectors of the maritime industry. It is projected that the number of domestic shipbuilding enterprises in Indonesia could grow by another 20% next year. She added that the development momentum of new shipyards is also on the rise, with current growth ranging between 5% and 10%. The industry's optimism primarily stems from the Indonesian government's shipbuilding construction and vessel modernization initiatives. It is estimated that there is a construction and renewal demand for approximately 20,000 vessels of various types across Indonesia, presenting a vast market opportunity for the domestic shipbuilding industry.
According to Iperindo data, its member companies collectively possess an annual ship repair capacity of around 36,000 dock berths and a newbuilding capacity of about 900 berths. Anita Puji Utami stated, "With this capacity, we can, in principle, meet the shipbuilding needs of government departments and state-owned enterprises. This includes the planned project for 80 product tankers by Pertamina and the thousands of vessels required for the domestic fishing fleet modernization program."
Furthermore, Iperindo is committed to promoting tug-barge construction, with an annual capacity to supply up to 800 sets of tugs and barges. The association is also actively involved in the renewal task for over 1,684 aging domestic vessels that are more than 25 years old. Anita Puji Utami pointed out, "The current domestic shipbuilding capacity is approximately 1,200 vessels per year, while the repair/maintenance capacity can reach up to 36,000 vessels annually."
She indicated that multiple growth areas, including Indonesia's maritime highway program, energy and mining projects, fisheries development, defense needs, and logistics transportation for food and energy, will continue to drive the expansion of vessel demand. However, the industry still faces several challenges, such as a significant share of imported vessels, insufficient financing channels, high raw material costs, and the need for further coordination of relevant regulatory policies.