Indonesia to build mega shipyard

South Korea’s Daeju Construction Engineering, which specialises in dockyard and city developments, will invest $500 million in a shipyard project in Karimun Island, one of the islands in the Riau Islands province of Indonesia. “The construction of the shipyard is expected to start in September or October,” Oh Jae Hong, Daeju’s overseas business director, told reporters in Jakarta. He didn’t say when the shipyard will be finished. Daeju could develop the shipyard to be the biggest in the world he said.

Daeju is one of seven local and foreign companies that recently signed investment agreements with the government of Riau Island Province. The seven companies plan to invest a total $543.2 million in the province’s islands of Batam, Bintan, and Karimun and will create employment for more than 8,000.

The other investors are Schmidtmann investing in the field of production of metal goods for construction purposes, PT Batamfast Indonesia in international shipping, PT Neptune Marine in shipbuilding, ship repair and reconditioning of machineries/equipment worth $1.6 million, PT Cemara Intan Shipyard in shipbuilding and repair of ships worth $2 million and Indo Multi Sarana in industrial development worth $15 million.

Tiong Woon Co. Ltd that operates in shipping, port operation, fabrication, manufacturing and logistics meanwhile plans to invest around $20 million in Bintan.