The Indonesian National Shipowners’ Association (INSA) and the Indonesian Shipbuilding and Offshore Association (Iperindo) are calling for immediate policy interventions to stabilize the nation’s shipbuilding sector. The plea follows the bankruptcy of PT Dok Perkapalan Surabaya (DPS), a shipyard with a 116-year history, which industry leaders describe as a critical warning regarding the current state of national maritime infrastructure.
Did You Know? PT Dok Perkapalan Surabaya (DPS) had a 116-year history before its recent bankruptcy, a closure that industry leaders argue represents a significant loss of skilled labor and established industrial supply chains.
Policy Challenges for the Shipbuilding Industry
According to INSA chairperson Carmelita Hartoto, the shipbuilding industry possesses unique characteristics that demand specialized, consistent policy support. The sector is both capital-intensive and labor-intensive, requiring long-term investments and extended payback periods. Furthermore, shipyards must adhere to rigorous international safety and classification standards to remain viable.
Hartoto noted that while President Joko Widodo has expressed a clear political commitment to the industry, this intent must be translated into tangible regulations. Current hurdles include systemic issues with raw material procurement and access to financing, which prevent domestic shipyards from competing effectively in an archipelagic nation that relies heavily on maritime logistics.
Risks to National Industrial Capacity
The collapse of PT DPS is viewed by industry stakeholders as a symptom of broader structural weaknesses. Iperindo chairperson Anita Puji Utami stated that the closure is not an isolated incident but a loss of industrial capacity that threatens the national supply chain. The industry remains concerned that without proactive policy shifts, the loss of skilled workers and infrastructure built over decades may continue to affect the country’s maritime sovereignty.
Expert Insight: The bankruptcy of a legacy firm like PT DPS highlights the precarious nature of capital-intensive industries in Indonesia. The primary stake here is maritime sovereignty; if the domestic shipbuilding industry cannot sustain itself, the nation’s logistics system may become increasingly dependent on foreign capacity, potentially driving up costs and reducing control over essential maritime infrastructure.
Potential Future Developments
Looking ahead, the industry may see a shift in focus toward government-led initiatives to secure the shipbuilding supply chain. Given the ongoing plans to construct 1,582 fishing vessels by 2028, stakeholders expect that the government could prioritize policies that directly link these large-scale projects to domestic shipyard utilization. If these policies are implemented, they may provide the necessary financial stability to prevent further industrial contraction.
Frequently Asked Questions
Why is the bankruptcy of PT DPS considered a significant warning?
According to Iperindo chairperson Anita Puji Utami, the bankruptcy signals the loss of essential industrial capacity, skilled workers, and a supply chain that took decades to develop.
What are the specific characteristics of the shipbuilding industry that require policy support?
INSA chairperson Carmelita Hartoto noted that the industry is capital-intensive and labor-intensive, requires long-term investment with a long payback period, and must meet strict international safety standards.
What is the main goal of the proposed policy changes?
The goal is to strengthen the national shipbuilding industry to ensure it can support Indonesia’s logistics system and solidify the country’s position as a sovereign maritime nation.
How do you believe the government should prioritize domestic shipyards to ensure long-term maritime stability?
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