State Shipbuilders Join to Form Manufacturing Industry Cluster

As many as three state owned (BUMN) shipbuilders, together with other state manufacturers, will join to build industry cluster, following the instruction of Ministry of State-Owned Enterprises.

The three shipbuilders include Dok Perkapalan Surabaya (DPS), Dok Kodja Bahari (DKB), and Industri Kapal Indonesia (IKI).  Together with the other three heavy equipment companies of PT Barata Indonesia, Boma Bisma Indra (BBI), and Industri Kereta Api (Inka), totalling in six state owned enterprises, they will form a manufacturing industry cluster.

Antara reported that the Minister of State Owned Enterprises Erick Thohir has assigned the six state-owned firms to set up a manufacturing industry cluster and is expected to be completed this year (2020).

Barata, a construction and manufacturing firm, will become the coordinator of the cluster.

“They produce various products, such as ship, turbine, heavy equipment, and those related to the heavy equipment industry,” President Director of PT Barata Indonesia Fajar Harry Sampurno said as quoted by Antara.

Sampurno noted that the cluster aims to restructure the industries. The six companies will synergize efforts in production, such as in the production and maintenance of ships, to support state oil company PT Pertamina to expedite the construction of an oil refinery, and state electricity firm PLN in the construction of a power plant.

“We will consolidate the operation first and maintenance, and thereafter, we will also support Pertamina to accelerate development of the oil refinery and power plant for PLN,” Sampurno said.

Sampurno echoed the state enterprises minister’s target to complete the establishment of the cluster this year.

PT Barata Indonesia is a state-owned construction and manufacturing firm that produces iron and steel castings and forged components for sale to industrial and municipal customers.

PT Boma Bisma Indra (BBI) is a state company engaged in engineering, procurement, construction, and manufacturing industrial equipment.

Three other companies in the cluster — PT Dok Perkapalan Surabaya (DPS), PT Dok Kodja Bahari (DKB), and PT Industri Kapal Indonesia (IKI) — are state-owned shipbuilding companies, while PT Industri Kereta Api (Inka) is a rolling stock manufacturer.

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