Indonesia Has a Huge Prospect of Maritime Industry – What You Need to Know
- As an archipelago comprising more than 17,000 islands, air and maritime connections are vital to Indonesia and its economy.
- Indonesia’s economic potential from the developed maritime sector is huge. Some points in detail: USD 32 billion from fisheries sector, USD 56 billion from coastal businesses, USD 2 billion from marine tourism, USD 21 billion from the oil industry and USD 20 billion from sea transportation.
- Indonesia has 250 shipyards with the capability of building a new 900,000 DWT / year and repair capabilities 12,000,000 DWT/year.
- The National Development Planning Board (Bappenas) previously estimated that the government would need to invest around US$ 54 billion between 2015 and 2019 to develop 24 commercial seaports, 1,481 non-commercial seaports and to procure vessels.
- Indonesian Investment Coordinating Board (BKPM) recorded from 2015, there had 37 project principle permits in maritime sector worth IDR 3.9 trillion. The principle permits comprise 17 foreign investment projects worth IDR 1.7 trillion and 20 domestic investment projects worth IDR 2.2 trillion.
- Recently, President Joko “Jokowi” Widodo’s announced Maritime Highway Program (Tol Laut) to implement the vision of Indonesia as the World’s Maritime Axis.
- Maritime Highway Program, driving the need for new vessels as much as 83 container ships of various sizes ; 500 ships cruise the people; 26 ships pioneer; 73 coast guard shps, 60 ships goods, 15 units of semi-container ships, 20 ships rede, 5 units of livestock vessels, 20 navigation vessels; 4 units of FPU, 3 FPSO units, and 1 unit FSO (SKK Migas, 2015); 3,280 units of fishing vessels, 9 fish transport vessels, 30 units patrol boats; 13 units patrol boats. Marine tourism sector also continues to require the vessels its activities. This condition will require big volume of marine equiment and components and creates the oppoturnity for the development of marine components industry.
Estimated Economic Value for Maritime Sector (US$ Billion)
Source : Ministry of Industry, Republic of Indonesia