Iperindo seeks subsidized fuel support to strengthen shipyard industry
Jakarta (ANTARA) - The Indonesian Shipyard and Offshore Facilities Institution (Iperlamindo) is hoping for support through subsidised fuel (BBM) for shipyard needs to strengthen competitiveness and maintain the sustainability of the national maritime sector.
“Specifically for industrial fuel usage in shipyards, the hope is to receive subsidised fuel from the government,” said the General Chair of Iperindo, Anita Puji Utami, in a statement in Jakarta on Monday.
She stated that the national shipyard industry is currently facing increasingly heavy challenges due to the recent rise in the US Dollar exchange rate against the Rupiah. This condition is exacerbated by the rising prices of energy and various raw materials used in the construction of new vessels and ship repairs.
Anita noted that pressure on the shipyard industry is becoming more palpable alongside increasing global economic uncertainty triggered by geopolitical conflicts in the Middle East. According to her, the escalation of conflict involving Iran and the United States, and its impact on international trade routes—particularly in the Strait of Hormuz—has triggered price increases for various commodities and materials required by the shipyard industry.
“This impact is felt directly by businesses that still rely on raw material supplies from abroad,” she said.
Data collected by Iperindo shows that the price of B40 diesel has increased by up to 89.19 per cent. Additionally, the price of 12kg LPG has risen by 16.16 per cent and 50kg LPG by 26.51 per cent compared to the previous period. Increases have also occurred in various key production materials. The price of steel plates, a primary material for shipbuilding, recorded an increase of between 7 and 12.60 per cent, while ship paint prices rose by approximately 21 per cent, further adding to shipyard operational costs.
Therefore, she hopes that the government can provide subsidised fuel specifically for industrial use in shipyards. Furthermore, Anita continued, other supporting components such as zinc anodes and aluminium anodes have also increased by 12.87 per cent and 13.61 per cent, respectively. The price of oil for the operation of machinery and shipyard equipment rose between 15 and 40 per cent, while plastic materials increased by approximately 30 to 50 per cent.
Anita explained that the national shipyard industry still has a high dependency on imported components. “About 45 per cent of material and equipment needs still come from abroad, making it very vulnerable to foreign exchange fluctuations,” she said.
She noted that many work contracts were signed when the dollar exchange rate was at a lower level. However, during the procurement and settlement of materials, businesses must pay at a much higher dollar rate, leading to significant cost overruns. The President Director of PT Adiluhung Saranasegara Indonesia explained that to maintain business continuity and ensure service quality, several shipyards have been forced to adjust ship repair tariffs. These tariff increases are estimated to reach approximately 20 per cent as a measure to offset the ongoing surge in production costs.
Meanwhile, for ongoing new shipbuilding projects, industry players are currently conducting discussions and negotiations with ship owners regarding the possibility of implementing cost escalations. Iperindo hopes the government can provide attention and support for the conditions faced by the national shipyard industry.
“So that this strategic sector can remain resilient, maintain competitiveness, and support the growth of the Indonesian maritime industry,” she concluded.