Shipyards form consortium to improve competitiveness
The Jakarta Post, Jakarta
Indonesia's eight largest shipyards have formed a consortium to leverage their competitiveness in the global market, while they eye a US$400 million project to build tankers for state- owned oil and gas company Pertamina.
President Megawati Soekarnoputri witnessed on Wednesday the signing of a memorandum of understanding (MoU) on the consortium, called the National Shipyard.
The shipyards hope that as a consortium they will be better able to compete against international shipbuilders.
Signing the MoU were representatives of PAL Surabaya, Dok Surabaya, Koja Bahana Jakarta, Dumas Surabaya, INGGIM Jakarta, Duta Marina Indah, Intan Sekunyit Palembang and IKI Ujungpandang.
State Minister of State Enterprises Laksamana Sukardi said the consortium was negotiating with Pertamina for the construction of 38 tankers by 2008.
"Currently the talks center on building 10 to 12 ships at a total value of $400 million," Laksamana, who also attended the signing ceremony, said.
One official who declined to be named said the local shipping industry was capable of building ships of up to 26,000 deadweight tons.
The official said local shipyards were unable to build anything beyond that size in accordance with international standards.
He added that the eight shipyards also established the consortium in response to competition from Chinese shipbuilders.
Megawati witnessed the signing ceremony along with her husband, businessman and legislator Taufik Kiemas.
Also present were State Minister of Research and Technology Hatta Radjasa, Minister of Defense Mathori Abdul Jalil and Minister of Industry and Trade Rini Soewandi.
Several high-ranking officers from the Indonesian Military also were present.
Megawati also witnessed the handing over of a new patrol boat, which state-owned PT PAL Indonesia built for the Navy.
The 57-meter-long boat is the 11th of a total of 12 boats the Ministry of Defense ordered, PAL director Moehammad Moenir said on Tuesday.
It comes equipped with a weapons control system and can cruise at speeds of up to 29 knots. This makes it the Navy's fastest boat in its class, with other similar boats reaching top speeds of 16 knots to 17 knots.
"With faster and better equipment the Navy will hopefully be able to begin maximizing its efforts to patrol the country's waters," Moenir said.
PT PAL also handed over a type 28 fast patrol boat (FPB) to the Customs and Excise Office, and a type PAX-2000 passenger vessel, the KM Maroka Ehe, to the provincial administration of Papua.
The director general of the Customs and Excise Office, Permana Agung, said his office planned to overhaul 12 FPBs, two of which were being completed.
The PAX-2000 passenger boat is the first vessel to be ordered by the Papuan regional administration.