Small and medium enterprises (SMEs) in Batam, Riau Islands, are not yet able to fully support the fast-growing shipbuilding industry because most SMEs are not directly linked to the industry
mall and medium enterprises (SMEs) in Batam, Riau Islands, are not yet able to fully support the fast-growing shipbuilding industry because most SMEs are not directly linked to the industry.
The Agency for the Assessment and Application of Technology (BPPT) will establish a shipyard industrial cluster to develop SMEs' capabilities in supplying the needs of the hi-tech industry, especially shipyards, in Batam.
The plan was forged with the signing of a memorandum of understanding (MoU) between the BPPT and the Batam Free Trade Zone Management Agency (BPK FTZ) on Friday.
BPPT chief Marzan Aziz Iskandar said his agency would synchronize SMEs with the existing shipyards.
'When we are talking about an industrial cluster, then we should also consider all aspects surrounding it, including SMEs,' he said. 'SMEs can produce components or modules with cheaper price.' Marzan said that the Japanese automotive industry sourced some 70 percent of the components from SMEs and that such models could be implemented for the shipbuilding industry in Batam.
Meanwhile, BPK FTZ chief Mustofa Widjaya said currently there were some 90 shipyards in Batam which were growing at a tremendous rate.
'Such tremendous growth requires speed in the shipbuilding activities including looking for partners,' he said.
'The industry is relying on their existing partners but we also need local partners now to empower the local economy and businesses.'
Mustofa expected that if a shipyard won a project then it would also involve the neighboring companies to work on that project.
He was referring to the case in South Korea that when a shipbuilder won a contract to build a huge tanker, then the neighboring firms would work on the segments of the tanker.
'We must do this in Batam.' said Mustofa.
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