By Eddy Kurniawan Logam Chairman Of Iperindo

Opportunities In Indonesia
Maritime Market
EDDY KURNIAWAN LOGAM
Chairman of Iperindo
Consulate General Of The Republic Of Indonesia, Hamburg - SMM 2016
Indonesian Maritime Strategy On Ports, Shipbuilding & Shippng Lines Seminar
5 September 2016 – Hamburg, Germany
TOPICS
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Indonesia’s Snapshot
Cabotage Principle (2005)
Shipping Industry Post Cabotage Law
Shipbuilding Industry Profile
Shipbuilding Industry’s Challenges & Key Issues
New Maritime Era Under President Jokowi
Huge Opportunity
IPERINDO in Brief
IPERINDO = Ikatan Perusahaan Industri Kapal dan Lepas Pantai Indonesia
or Indonesia Shipbuilding and Offshore Industries Association
Opportunities in Indonesia Maritime Market | IPERINDO
01
INDONESIA’S SNAPSHOT
• The largest archipelago country : + 17.500 islands, + 81.000 km shoreline
(14% of the world shoreline), 2/3 sea area
 Land area = 1.910.931,32 km² (Kemendagri, Mei 2010); Sea area = 3.544.743,9 km²
(UNCLOS 1982) consists of : territorial area = 284.210,90 km², EEZ = 2.981.211,00
km², 12 mile area = 279.322,00 km²
• Capital : Jakarta
• Currency : Indonesian Rupiah
• Nominal GDP : $895 billion USD (IMF, 2015)
• GDP per capita : $3,415 USD at Current Prices (IMF, 2015)
• GDP growth : 4.7% (2015)
• Population : 255 million (estimated, 2015)
• Productive populations : 66.5% (age 15-64)
• Rich & abundant natural resources
• Projected to become the 10th largest economy in Y2020 – GDP US$3,2 T
(Stanchart)
Opportunities in Indonesia Maritime Market | IPERINDO
02
CABOTAGE PRINCIPLES (2005)
Cabotage Principle was initiated in 2005 when the domestic shipping
industry in Indonesia almost collapsed as a result of foreign vessels
engaging in coastwise transportation.
The initiative was then reinforced by the introduction of the Maritime Law No.
17 of 2008 which was aimed at providing business opportunities and
greater market share to Indonesian companies.
Article 8 of the Maritime Law No. 17 of 2008 sets out the following
principles:
• That activities relating to domestic sea transportation must be performed
by an Indonesian Sea transportation company using an Indonesian
flagged vessel which are manned by Indonesian crews; and
• Non-Indonesian sea flagged vessels are prohibited from carrying
passengers and or goods between island or ports in Indonesian waters.
Opportunities in Indonesia Maritime Market | IPERINDO
03
SHIPPING INDUSTRY AFTER CABOTAGE LAW
Number Of
Vessels
Yard’s Installed
Capacity
12000000
12000
10000000
10000
8000000
8000
6000000
6000
4000000
4000
2000000
2000
0
0
2005
Repair
2012
New Build
Vessels’ Age
Distribution
2005
2012
# of Vessel
App 90% of # of vessels’
increase was imported and
second hand older tonnage
Opportunities in Indonesia Maritime Market | IPERINDO
04
SHIPBUILDING INDUSTRY PROFILE
Shipyards
• + 250 companies
Installed
Capacity
• New shipbuilding  0,9 Mn DWT/yr
• Repair & maintenance  12 Mn DWT/ yr
Facility
Capacity
• New shipbuilding  up to 50.000 DWT
• Repair & maintenance  up to 150.000 DWT
(Graving Dock)
Industry
Capability
• To build up to 1,500 DWT  ± 80% of total yard
• To build > 10,000 DWT  6 yards
Opportunities in Indonesia Maritime Market | IPERINDO
05
LOCAL YARDS’ CHALLENGES
& KEY ISSUES
• Unfavorable Fiscal & Tax Policy on the shipbuilding industry (Import Duty,
Corporate Income Tax)
• Lack of financing support (investment & working capital) from banking
industry (collateral requirement and high interest rate)
• Equipment's, parts and raw materials are mostly (app 70%) imported
• Limited production capacity
• Production management and ship design can be improved
Opportunities in Indonesia Maritime Market | IPERINDO
06
NEW MARITIME ERA UNDER
PRESIDENT JOKOWI (1)
• President Jokowi has declared his vision to make Indonesia the World’s
Maritime Axis and outlined an ambitious maritime doctrine to boost
economic growth by improving connectivity between the islands of the
Indonesian archipelago.
• Government has decided that all government and state-owned companies’
vessels procurement have to be built locally
• Government has proven its commitment by purchasing vessels to local
shipyards
 Sea Comm – total 188 vessels : 73 patrol boats, 95 passenger 1.200 & 2.000
GT vessels, & 15 navigation vessels, Rp. 11.8 T eqv US$ 875 Mio
 Fishery Ministry – Y2016 target 3.540 various sizes (<5, 5, 10, 20 & 30 GT) of
fishing vessels, Rp. 4 T eqv US$ 295 Mio; Y2016-2019 target 16.000 vessels
worth Rp. 16 T eqv US$ 1,185 Mio
Opportunities in Indonesia Maritime Market | IPERINDO
07
NEW MARITIME ERA UNDER
PRESIDENT JOKOWI (2)
• Government has exempted Value Added
Tax (10%) last year
• Government has issued business licenses to
11 companies to operate bonded logistics
warehouses in the beginning of Y2016
• Government has opened the opportunity to
private sector to invest and operate sea
ports
Note :
IPERINDO is lobbying the Government to
exempt the Import Duty as well
Opportunities in Indonesia Maritime Market | IPERINDO
08
HUGE OPPORTUNITY (1)
• The development of large-scale shipyards to build larger size and more
complex vessels
 Few existing large shipyards
 Lower land price
 Trainable labor at lower cost
• The development of premium repair & maintenance yards
 Docking for most of medium-large vessels has to be done overseas
 Long waiting period to get docking space
 Most of foreign equipment makers do not have local warehouse
• The production of equipment's, parts and raw material locally
 Most of winches, anchors, valves etc. are still imported
• The production management and ship design services
 Proven design will help to accelerate and improve future ship building
Opportunities in Indonesia Maritime Market | IPERINDO
09
HUGE OPPORTUNITY (2)
• The development of recycling
business due to rejuvenation
of old vessels (30% >20
years)
• Shifting from oil to gas will
trigger LNG-related
businesses from processing
(FRSU/FSU), transportation
(small-medium LNG carriers),
storage (LNG tank farms),
etc.
Opportunities in Indonesia Maritime Market | IPERINDO
10
IPERINDO IN BRIEF
IPERINDO
Ikatan Perusahaan Industri Kapal dan Lepas Pantai Indonesia
(Indonesia Shipbuilding and Offshore Industries Association)
Established
Purpose
well
Function
Members
: 11 March 1968
: To support and develop shipbuilding & offshore industries as
as its supporting industries
: - Consolidate ideas of its members for industry’s growth
- Advocate and represent members to meet the Government’s
officials and other important stakeholders
: 142 Companies
• 94 shipbuilding companies
• 1 offshore company
• 39 supporting industries
Opportunities in Indonesia Maritime Market | IPERINDO
• 4 classification companies
• 4 consulting companies
11
RIAU/ KEP. RIAU
PT. Citra Shipyard
PT. Bandar Abadi
PT. Multi Ocean Shipyard
PT. Batam Expresindo Shipyard
PT. Marinatama Gemanusa
PT. Palindo Marine
PT. ASL Shipyard
PT. Patria Maritim Perkasa
PT. Cahaya Samudera Shipyard
PT. Palma Progress Shipyard
PT. Bandar Victory Shipyard
PT. Idros Service
PT. Llthabi Mandiri Teknik
SHIPYARD’S DISTRIBUTION
KALIMANTAN
PT. Muji Rahayu Shipyard
PT. Kukar Mandiri Shipyard
PT. Galangan Balikpapan Utama
PT. H & H Utama Internasional
SULAWESI
PT. Industri Kapal Indonesia
PT. Unggul Sejati Abadi
PT. Sarana Samudera Pacific
PT. Bitung Sarana Mulia
CV. Sarana Marine Fiberglass
+ 250 Shipyards
PAPUA
PT. Dakindo Aimas Papua
PT. Skyline Kurnia
SUMATERA
PT. Noahtu Shipyard
PT. Marine Mandiri Shipping Line
PT. Pahala Harapan Lestari
PT. WarunaNusa Sentana
PT. Dok & Perkapalan Air Kantung
PT. Lampung Andalas Shipbuilding & Engineering
PT. Mariana Bahagia
PT. Intan Sengkuyit
BANTEN
PT. Samudera Marine Indonesia
PT. Saturn Manunggal Abadi
PT. Krakatau Shipyard
PT. Krakatau Steel (Persero)
PT. Krakatau Posco
JAWA BARAT
PT. Dok bahari Nusantara
PT. Patria Martime Industry
PT. Gunung Raja Paksi
PT. Samudera Luas Paramacitra
PT. Hamson Indonesia
PT. Pindad (Persero)
PT. Hempelindo
JAKARTA
PT. Dok & Perkapalan Kodja Bahari
PT. Union Yard
PT. Janata Marina Indah
PT. Daya Radar Utama
PT. Perkapalan Nusantara (Persero)
PT. Dukuh Raya Dockyard
PT. Bayu Bahari Sentosa
PT. PUSKOPELRA
PT. Dok Duasatu Nusantara
PT. Caputra Mitra Sejati
PT. Steadfast Marine
PT. Hamdok Argokaravi Raya
PT. Mutiara Fibrindo
PT. Merpati Marine Service
PT. Tesco Indomaritim
PT. Fibrite Fibreglass
PT. Kawi Eka Karya
PT. Pengerukan Indonesia (Persero)
PT. Adiguna Shipbuilding & Engineering
PT. Gunanusa Utama Fabricators
PT. Indonesia Magma Chain
PT. Palka Sarana Utama
PT. Antesanu Bahari Utama
PT. Aneka Sarana Konstrindo
PT. Multico Millenium Persada
PT. Pivotel Amalgam Indonesia
PT. Metalock (Indonesia)
PT. Wechai Singapore Pte Ltd – Indonesia Branch
PT. Kresna Adikarsa
PT. Dunia Marine Internusa
PT. Reka Pola Bahari
PT. Rachsa Putra
PT. Omega Marine
PT. Biro Klasifikasi Indonesia
PT. Nipon KaijiKyokai Indonesia
NUSA TENGGARA/ MALUKU
PT. Wahana Putra Marindo
CV. Wahana Fiberglass
PT. Waiame
PT. Mitra Kieraha Prima
JAWA TENGAH
PT. Tegal Shipyard Utama
PT. Sanur Marindo Shipyard
PT. Ben Santosa
PT. Yasa Wahana Tirta Samudera
Opportunities in Indonesia Maritime Market | IPERINDO
JAWA TIMUR
PT. F1 Perkasa
PT. Dok & Perkapalan Surabaya
PT. Indonesia Marina Shipyard
PT. Dumas Tanjung Perak Shipyard
PT. Samudera Indoraya Perkasa
PT. PAL Indonesia
PT. Bintang Timur Samudera
PT. Najatim Dockyard
PT. Sumber Logam Nusantara
PT. Dewa Ruci Agung
PT. Adiluhung Saranasegara Indonesia PT. Banyuwangi Perkasa
PT. Dok Pantai Lamongan
PT. Duta Marina Shipyard
PT. Tri Ratna Diesel Indonesia
PT. Marulin Maju Utama
PT. Tirta Wiguna Agung
PT. Tambangan Raya Permai
PT. Arum Samudera
PT. Galangan Surya Pelni
PT. Dodo Sakti
PT. Mitra Pal
PT. Palindojaya Utama
PT. Teknik Tadakara Sejati
PT. Tirtasari Permai
PT. Gunawan Dianjaya Steel
CV. DeReconstruction
PT. Pantheon Energie
PT. Marinav
PT. Avenir
Sumber: Directori IPERINDO 2015 - 2016
12
WELCOME TO INDONESIA
We welcome and support you to invest and
expand in Indonesia and participate in
building Indonesia to become the
World’s Maritime Axes
Thank you