Indonesia Becomes Global Maritime Axis through Shipping Industry

VIVA English Site – As one of the largest archipelagic countries in the world, Indonesia has the potential as a strong maritime country. The Indonesian government places the shipping industry as one of the priority industrial sectors to be developed.

President Joko Widodo has introduced Indonesia's policy as the Global Maritime Axis which is embodied in five main pillars. One is the commitment to build maritime infrastructure and connectivity by building sea toll roads, sea ports, logistics, and shipping industry, then marine tourism.

As reported from the Press Release of Kemenperin.go.id, the Minister of Industry, Agus Gumiwang Kartasasmita at the Inauguration of the General Chair and Management of the Central Executive Board (DPP) of the Indonesian Shipping and Offshore Facility (IPERINDO) in Jakarta, explained about Indonesia's task as a maritime country that strong and independent.

“Our task is to make Indonesia a strong and independent maritime country. For that, synergy is needed to formulate policies and concrete steps to develop the transportation sector and adequate marine infrastructure,” Agus Gumiwang Kartasasmita explained on Wednesday, October 5, 2022.

The Minister of Industry said that the shipping industry has a strategic role in supporting the national economy so far. This industry has the characteristics of being a labor-intensive, capital-intensive, and technology-intensive sector.

"In addition, the shipping industry sector has a long backward linkage and forward linkage," Minister Agus remarked.

Currently, Indonesia has more than 250 shipyards spread from Sabang to Merauke, and 127 supporting industries that produce raw materials and components according to marine use standards.

"Indonesian shipyards have experience in building various types of ships, ranging from passenger ships, cargo ships, to special-purpose ships with the largest graving dock facility, namely 300,000 Dead Weight Tonnage (DWT)," the Minister of Industry explained.

Throughout 2019-2021, there have been 473 domestically built vessels with the largest proportion being Barge (274 units) and Tug (100 units). Furthermore, for the period of January-August 2022, there have been 363 applications for new shipbuilding in domestic shipyards.

"This figure shows shipowners from ministries and institutions, BUMN, and the private sector are increasingly trusting domestic shipyards to meet the needs of their fleet," Agus Gumiwang Kartasasmita remarked.

However, to develop the domestic shipping industry that is globally competitive, steps are needed to reduce imported raw materials and components, competitive financing support, as well as efficient shipbuilding procedures and stages.