State shipyard sees exports on the horizon
JAKARTA (JP): The state-run shipbuilding company PT PAL will export four bulk carriers and one reefer vessel at a total value of US$100 million to Britain and the Netherlands.
"We will soon sign the deals with the two countries," Suleman Wiriadidjaja, senior executive vice president of the Surabaya-based firm told journalists yesterday.
Suleman said Britain will procure four 18,000-dead-weight- ton (DWT) bulk carriers at $20 million each, while the Netherlands will purchase one reefer vessel of 18,000 DWT at $20 million.
"This is our first export experience and it indicates that our products have got international recognition," said Suleman.
His company has won ISO-9001 quality-assurance certification from Germanischer Lloyd of Germany for its management, designing, engineering and manufacturing.
He said his company has also won an international tender from state oil company Pertamina for providing three oil tankers of 17,500 DWT at a price of $23.1 million each.
PAL, which is overseen by the Supervisory Board for Strategic Industries (BPIS) chaired by State Minister for Research and Technology B.J. Habibie, produces a wide range of vessels, from fishing to military ships.
The company can make two 450-DWT warships and four of the 60-DWT type annually.
Production
It has produced eight 450-DWT fast patrol ships, all procured by the Indonesian Navy, and 17 60-DWT fast patrol boats, of which 12 were bought by the Directorate General of Customs and Excise. The five others were procured by the Police Force.
"The quality of our military ships is just the same as those produced by German dockyards," Suleman said.
He noted that the company can produce at least three units of 45,000 DWT commercial vessels yearly. Since early this year the company has focused on producing large vessels of over 10,000 DWT.
Construction of smaller vessels, such as Caraka Jaya ships, has been taken over by smaller shipyards.
Suleman explained that the marketing of PAL's commercial ships has gone smoothly. It sells all products to state-owned PT PANN Multi Finance, which then resells or leases the ships to shipping companies.
"PAL has sold 32 commercial ships to PT PANN, and I heard all of them are sold out. State-run shipping operator PT PELNI even paid cash for some of them," Suleman said, adding that PAL's commercial ships are among the most modern ones in their classes.
He said that investment in shipping is slow yielding and that most banks are reluctant to finance the procurement of ships, especially fishing vessels.
"However, PAL has signed a contract with a Spanish company for making fishing vessels worth $32 million," Suleman said.
PAL has signed contracts with a number of international shipbuilding firms, such as Mitsui of Japan and Luerssen Werft of Germany, for transfer of technology. (rid)