National Steel Products to Get More Rooms in National Shipbuilding Industry

Rudi Maulana, General Secretary of ‘Poros Maritim Dunia Nawacita’

Local-produced steel is expectedly getting more market in national shipbuilding industry following the commitment, goodwill, and program of Ministry of Industry to strengthen the national steel industry.

The Ministry’s Director General for Steel, Machine, Transportation Vehicles, and Electronic (ILMATE) Taufiek Bawazier has just explicitly said to massively develop the national steel industry in a bid to support the national shipbuilding industry growth.

Echoing it, General Secretary for the government’s maritime program to make Indonesia as the world maritime axis – Poros Maritim Dunia (PMD) – Rudi Maulana affirmed it, calling for the use of local products, including steel, to support the revival of national shipbuilding industry.

“As a strong maritime country, this (the use of local steel for shipbuilding industry) should be appreciated,” he told reporters today (Friday, July 17), expecting all national shipbuilders to utilize local steel in building vessels.

Rudi affirmed there are some components that should be imported since Indonesia has not produced it yet. But, he asked for a more selective importation process. “It is we still import components that the national manufacturers have not produced yet. But, it should be more selective,” he said.

Earlier, Director General for Steel, Machine, Transportation Vehicles, and Electronic (ILMATE) Taufiek Bawazier in a YouTube Discussion conducted by Hipmi (Indonesia Young Entrepreneurs Union) explained that import of steel products should be more selective. He said, the import is allowed for steel that has not been produced by national manufacturers yet.

The government, he said, would continue to do transfer of technology to support the national manufacturing to product steel that are still imported until now. “With the transfer of technology, we will step by step produce any kind of steel, so one day, no more steel we will import,” he said.

Shipbuilders’ Expectations

The shipbuilding industry remains one of key factor in maritime industry, and further in national logistics system. Hence, the shipbuilding industry should be encouraged to get progress.

This industry (shipbuilding) needs at least four aspects to get progress, according to Eddy Kurniawan Logam, Chairman of Indonesia Shipbuilders’ Association (Iperindo).

First, it has to ‘go digital’. Taking an analogue as easy as booking hotel rooms in a   platform booking online, Eddy expects to get information on dock space  easily within a digital platform. The ‘go digital’ in shipbuilding industry relates to easiness in getting information on location, space availability, facilities, and review.

Second, fast and smooth docking process. Eddy explained that though the domestic docking tariff is cheaper compared to neighbour countries, but there is a stigma that Indonesia’s docking time is much longer.

Third, conducive environment for maritime industry growth. Eddy said the government plays key role in creating a conducive business climate. He said that the government clear and long-standing policies have supported the maritime industries in Korea, Japan, China, and Vietnam grew up faster.

Fourth, making maritime industry attractive to banks and financial sector. Currently, Eddy explained, shipbuilders did investment very slow and step by step. Eddy expects for a paradigm change, thus encouraging the banks to disburse long-standing credit with lower interest rate.

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