Indonesian shipyards recovering

The Indonesian shipbuilding industry is recovering from a two-year-long downturn as shipbuilders benefit from an influx of both domestic and overseas orders. A government official said “The industry is expected to grow by 9.5% this year and surpass 10% next year as shipbuilders have received major orders from both local and overseas customers.”

Comprising of more than 250 ship- and boat builders, the industry grew by 7% last year, higher than 2005’s growth of 6%, according to the directorate general of transportation and communication industry. The figures also reveal that the maximum capacity of the national shipbuilding industry is expected to reach a total of 450,000 deadweight tonnes (DWT) this year, with shipbuilders operating at 65% capacity.

These figures compare with 400,000 dwt and 55% capacity last year.