INSA calls for stronger policies to boost shipbuilding industry

Medan, North Sumatra (ANTARA) - The Indonesian National Shipowners' Association (INSA) and the Indonesian Shipbuilding and Offshore Association (Iperindo) have called for strengthening the national shipbuilding industry through supportive policies to support the national logistics system.

"Strengthening the national shipbuilding industry is one of the main prerequisites for realizing Indonesia as a sovereign maritime nation," INSA chairperson Carmelita Hartoto said in a statement here on Thursday.

She expressed concern over the bankruptcy of shipbuilding company PT Dok Perkapalan Surabaya (DPS), which has a 116-year history in Indonesia.

According to her, the company's bankruptcy serves as a warning that the shipbuilding industry requires supportive and sustainable policies, considering the strategic role of shipyards in an archipelagic country like Indonesia.

Hartoto noted that the shipbuilding industry has different characteristics from most other industries.

It is capital-intensive and labor-intensive, requires long-term investment with a relatively long payback period, and must comply with various international safety and classification standards.

Given those characteristics, she added, the development of the shipbuilding industry requires consistent policy support to enable national shipyards to remain competitive.

She assessed that President Joko Widodo has demonstrated strong commitment and political will to develop the national shipbuilding industry.

However, that commitment needs to be realized into policies that support domestic shipyards.

"The challenge now is realizing that commitment into policies capable of addressing the real issues faced by the shipbuilding industry, ranging from raw materials to financing," she said.

Meanwhile, Iperindo chairperson Anita Puji Utami said the bankruptcy of PT DPS is a serious warning for all stakeholders that the national shipbuilding industry is facing significant challenges.

"The loss of one of the country's historic shipyards is not merely an issue affecting a single company, but also involves the loss of industrial capacity, skilled workers, and the national supply chain that has been built over decades," Utami said.

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Translator: Harianto, Kenzu

Editor: Azis Kurmala

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