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Japan'€™s Tsuneishi Holdings seeks foothold in RI ship repair

Buoyed by fresh business potentials in Indonesia, Japanese shipbuilding and maritime transport company Tsuneishi Holdings Corporation plans to spend US$40 million to set up a ship-repair business in the world’s largest archipelago

Linda Yulisman (The Jakarta Post)
Jakarta
Wed, May 27, 2015

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Japan'€™s Tsuneishi Holdings seeks foothold in RI ship repair

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uoyed by fresh business potentials in Indonesia, Japanese shipbuilding and maritime transport company Tsuneishi Holdings Corporation plans to spend US$40 million to set up a ship-repair business in the world'€™s largest archipelago.

Tsuneishi Holdings chairman and president Yasuharu Fushimi said the government'€™s plan to enhance sea connectivity promised good prospects and was the main reason for his firm to choose Indonesia as its investment destination.

'€œWe see a big potential to develop Indonesia'€™s shipping industry. We'€™ve estimated that around 3,293 ships will require repair services each year,'€ he said in a statement on Tuesday.

Tsuneishi'€™s presence in Indonesia will also contribute to employment, absorbing approximately 1,000 workers, according to the statement.

Fushimi added said that Tsuneishi would seek to expand into the shipbuilding industry, but declined to elaborate upon a specific timeframe for such a move.

Japan'€™s seventh-biggest shipping firm, Tsuneishi, has established a presence in China, the Philippines and Paraguay in four business sectors '€” environment, energy, shipping and shipbuilding.

The firm'€™s investment commitment was revealed to Investment Coordinating Board (BKPM) chief Franky Sibarani during an investment promotion roadshow in three of Japan'€™s major cities '€” Osaka, Tokyo and Nagoya '€” from May 25 to 29.

Franky said that Tsuneishi confirmed its plan after exploring opportunities to invest in other Southeast Asian countries, including Cambodia, Vietnam and Myanmar.

Tsuneishi'€™s planned investment would likely be carried out in two phases, the first involving $40 million in the reparation business, which could be expanded into the shipbuilding industry, he said.

'€œWe'€™ve recommended at least five locations for investment: Lampung, Lamongan, Surabaya, Makassar and Manado,'€ Franky said in a statement.

Lampung and Lamongan have been developed as new integrated shipping industry'€™s centers. Indonesia, a sprawling archipelago with more than 17,000 islands, is now spurring growth in its shipping and maritime industries in line with the new government'€™s vision to make the country a maritime axis.

The country plans to build 24 seaports in five years, comprising five major seaports and 19 feeder seaports to better link the western and eastern parts of the country, a measure that will lower its sky-high logistics costs.

At present, the local shipbuilding industry can produce just 30 percent of the 1,000 passenger vessels, fish-transporting ships and patrol boats needed annually.

Indonesia'€™s sea transportation industry may annually reach $20 billion, according an estimate by the Indonesian Chamber of Commerce and Industry (Kadin).

Recently, the government issued a new tax-allowance scheme, which will allow investors to reduce taxable income by up to 30 percent of their total investments applied over six years, a move that will also apply to the shipbuilding and marine industries.

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