Rising Dollar and Energy Prices Pressure Shipyard Industry
The weakening of the Rupiah against the US Dollar has begun to pressure the national shipbuilding industry. Recent exchange rate fluctuations have caused the cost of importing materials to swell, amidst a surge in energy and raw material prices that are further burdening business operators.
This situation is exacerbated by increasing global economic uncertainty resulting from geopolitical conflicts in the Middle East. The impact is felt not only in the international trade sector but also within the shipbuilding industry, which remains dependent on overseas material supplies.
The Chairperson of the Indonesian Association of Shipbuilding and Offshore Industry Companies (Iperindo), Anita Puji Utami, stated that the escalation of conflicts involving Iran and the United States has triggered price increases for various commodities and materials required by the industry. “This impact is felt directly by businesses that still rely on raw material supplies from abroad,” Anita said in a statement on Monday (8/6/2026).
Iperindo data shows that the price of B40 Diesel has risen by up to 89.19 per cent. Meanwhile, the price of 12kg LPG has increased by 16.16 per cent, and 50kg LPG has risen by 26.51 per cent compared to the previous period.
Increases have also occurred across various primary materials for ship construction. Steel plate prices were recorded to have risen between 7 per cent and 12.60 per cent, while ship paint prices increased by approximately 21 per cent. “Specifically for industrial fuel usage in shipyards, we hope to receive subsidised fuel from the Government,” Anita added.
Furthermore, the price of zinc anodes rose by 12.87 per cent and aluminium anodes increased by 13.61 per cent. Operational oil prices for shipyards also rose between 15 per cent and 40 per cent, while plastic materials increased by approximately 30 per cent to 50 per cent. Anita explained that approximately 45 per cent of the material and equipment needs for the national shipbuilding industry are still sourced from imports, making the industry highly vulnerable to US Dollar exchange rate fluctuations.