In International Shipping News 27/05/2015
Indonesia’s Investment Coordinating Board (BKPM) says developing the country’s shipping industry has a multiplier effect which is able to spur growth in other sectors of the economy and create employment.
Indonesia’s Investment Coordinating Board (BKPM) wants to develop the country’s shipping industry. The Board said the industry has a multiplier effect which is able to spur growth in other sectors of the economy and create employment.
“The potential for the shipping industry is huge – the demand for ships not only for cargo, but also passenger ships, ferries, fishing boats and so on. So, we are inviting investors to fill that demand,” said Franky Sibarani, head of BKPM on Tuesday (May 26).
The Indonesian Chamber of Trade and Industry values the shipping industry at US$20 billion. This is before taking into account the potential of the country’s maritime economy worth US$171 billion.
The National Development and Planning Board (Bappenas) said the shipyards in Indonesia can only meet about 30 percent of overall demand. This includes demand for transportation of goods, passenger ships, fishing vessels, patrol boats, navigation boats, and luxury liners.
Currently, there are only about 250 docking facilities for ships, concentrated in the islands of Batam and Java.
Director of PT Daya Radar Utama, Agus Gunawan, supports the move by BKPM to develop the national shipping industry.
“The potential to contribute to the manpower sector is also big. Our business with land use of about six hectares contributes up to 800 workers. This number can still be increased, given the huge potential in the shipping industry,” said Mr Agus.
