JAKARTA - The Ministry of Industry said it will encourage fiscal incentives to support the growth of the shipyard industry. The industry is considered to be of high competitive value due to its human resource capabilities and its use of modern technology.
“This policy is important because it can give the shipyard industry the discretion to improve its capacity and competitiveness,” said Industry Minister Agus Gumiwang Kartasasmita during his visit to PT Afta Tehnik Mandiri’s shipyard in Makassar, South Sulawesi on Monday (10/2).
In addition, Mr Kartasasmita added, the ministry will encourage financing assistance for vessel production due to the shipyard industry’s capital intensive and labour intensive nature.
“Building vessels require very high costs, and vessel development projects cannot be used as collateral by banks. As mandated by the Industrial Law, the government needs to establish a financing agency [for the shipyard industry],” said Mr Kartasasmita.
According to the ministry, there are currently over 250 shipyard companies with production capacity of 1 million DWT (deadweight tonnage) for new vessels and 12 million DWT for vessel repair annually.
“Going forward, we hope that production capacity for new vessels and vessel repair can be increased. The government will always encourage the growth of the shipyard industry so that it can meet domestic needs and even enter export markets,” Mr Kartasasmita concluded. (MS)