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Two Chinese firms mulls investing US$100 mln in Indonesia’s shipping industry

JAKARTA (rambuenergy.com) – Two Chinese firms have expressed interest in investing US$100 million in Indonesia’s shipping industry, a local newspaper reported.

The interest was revealed to the Indonesian investment officials during their visit last week to Hangzhou, Zhejiang province, which serves as China’s industrial shipping center. The province is home to 359 shipyard companies with a total production of 7.8 million deadweight tons (DWT) last year.

“They plan to invest [in shipyards] in Banten with an annual production capacity of 30 to 50 ships, particularly middle-sized ones of 10,000 to 20,000 deadweight tons,” the Investment Coordinating Board (BKPM) deputy director for investment planning Tamba Hutapea  was quoted by The Jakarta Post Friday.

Hutapea however did not disclose the names of the potential investors.
To facilitate the investment, the board will provide information about locations and connect the Chinese investors to Indonesian partners.

In collaboration with the Bank of China, the BKPM is promoting Indonesia’s business potential to Chinese firms from July 8 to 10.

In recent visit to Batam, President Joko Widodo reiterated his determination to develop shipping industry in the country. To support the goal, the government is drafting new rule to provide incentives for shipbuilders to build vessels in domestic yards, including lifting import duties on imported components.

The move to develop the shipping industry is part of the moves to support the President’s drive to create maritime axis plan.

Currently, incentives are only available in shipbuilders in trade zones in Batam, Riau Island Province. The government aims to replicate the successful of Batam shipping industry elsewhere. (*)

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