As competitors in Indonesia’s bulk shipping industry push to expand their fleets, PT Indonesia Bulk Carrier (IBC) is taking a more cautious route. Rather than procuring new fleets, the company is focused on optimizing the utilization of its existing fleet and strengthening long-term customer relationships in a volatile market.
“Our current focus is optimising the performance of our existing fleet. Any new procurement will depend on the right market momentum,” Kevin Joshua Sutji, Business Development Manager at PT IBC, told Indonesia Shipping Gazette in an interview on Thursday, October 2, 2025.
Kevin said the domestic shipping market is under pressure, primarily due to a mismatch between vessel growth and shipping demand. While coal exports surged in 2022 and 2023, prompting many operators to expand capacity, demand has since softened, leading to a glut of vessels.
“Supply growth has far outpaced demand. Many players were drawn in by high prices and added more ships, but now they’re facing a reality check,” he said.
That oversupply has weighed heavily on tariffs, particularly in the nickel transport sector, where rates have fallen by around 30% from previous highs.
“This situation requires a precise strategy, one that protects margins while ensuring customer loyalty,” Kevin revealed.
Operational Pressures
The shipping is also grappling with regulatory shifts, particularly around the mandated use of biodiesel. Under government rules, diesel fuel must now contain up to 40% biodiesel (B40), with B50 currently under preparation.
While intended to reduce emissions, the policy has posed technical challenges for tugboat operators.
“Engines not originally designed for biodiesel require more frequent maintenance. Performance drops unless systems are cleaned regularly,” Kevin said.
Despite the hurdles, IBC remains committed to regulatory compliance, even as it navigates the technical adjustments needed to accommodate biodiesel derived from Fatty Acid Methyl Esters (FAME).
Expansion, New Fleets Target on the Table
Founded in 2010 with just five tugboats and barges, IBC has grown its fleet to 11 units. But rather than pursue rapid expansion, the company has anchored its strategy in operational stability and long-term contracts, especially in the coal and nickel mining sectors.
“We don’t speculate. Ship investment is a long-term commitment,” Kevin said. “Our goal is to maintain operational efficiency and sustainability.”
With coal demand softening, IBC is increasingly shifting its focus toward nickel, a commodity seeing growing global demand due to its use in electric vehicle batteries. Indonesia, home to the world’s largest nickel reserves, is expected to play a central role in this supply chain.
“Nickel smelters in Sulawesi and other regions are opening up new lanes for domestic shipping. We’ve started diverting part of our fleet to serve these routes,” he said.
IBC sees long-term potential in eastern Indonesia, where sea transport remains critical due to limited land-based infrastructure. Barges are essential not just for mining logistics, but also for delivering construction materials to remote regions.
Although the company remains open to future expansion, its approach is firmly rooted in market fundamentals.
“Expansion is still on the table, but it has to align with real demand, not just temporary trends,” Kevin said.
As the bulk shipping industry faces multiple headwinds, from market oversupply to environmental regulation, IBC is betting that discipline, prudence, and efficient operations will prove more resilient than aggressive growth.