Initial Model Development of an Integrated Shipbuilding Industry in Indonesia: a Case Study of Indonesian State Owned Enterprises (BUMN) Shipyards

Abstract

Capacities of the world shipbuilding industry have been dominated by three major countries which are South Korea, China and Japan. The ship tonnage proportion they have been built is approximately 90% of the total ship tonnage in the world. Indonesia with the rest of the shipbuilding countries only share the rest of the proportion which are far less than the total capacities of those three countries. Indonesia has its potency to increase its shipbuilding industry capacity significantly with the support of 250 shipyards in this country. The increasing capacities can be fulfilled if those shipyards are getting involved in collaboration. The increasing capacity of Indonesian shipyard is need to be actualized to prevent order of shipbuilding rejection from overseas as a consequence of shipyard insufficient capacity. In this paper, an initial model for shipyard collaboration in Indonesia is developed. The number of shipyards to get involved in this initial model is limited to 4 BUMN shipyards. The selection of those shipyards is based on the consideration that those shipyards are under central coordination of Indonesian BUMN Ministry. Some aspects related to the model development are discussed and in the end, an initial model of an integrated shipbuilding industry in Indonesia is proposed.