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View all search resultsShipbuilding industry struggles with persistent weak demand
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Foreign technicians walk down the gangway of the KRI I Gusti Ngurah Rai warship at the shipyard of state-owned shipbuilder PT PAL Indonesia in Surabaya, East Java, on Nov.8, 2016. (Antara/Irfan Anshori)
I
ndonesia’s shipbuilding industry is facing mounting pressure from a lack of domestic orders for ship construction that has persisted since the coronavirus pandemic.
The dearth in orders has threatened the operations of several shipyards and could trigger layoffs across the industry, according to the Indonesian Shipbuilding Association (Iperindo).
Iperindo chairwoman Anita Puji Utami said industry players were staying afloat for now by relying on maintenance services for income.
“There’s still work to do, such as annual maintenance and minor repairs, but looking ahead, we hope there will be new ship construction within the country,” she said on the sidelines of the Iperindo general members meeting in Jakarta on Wednesday, as quoted by Kompas.com.
She explained that one of the challenges holding back the industry’s recovery was the importation of used vessels from countries like Japan and China.
Domestic construction of new ships is deemed crucial to sustaining local supply chains and creating more jobs for both direct and subcontractor workers.
Muted local orders had directly impacted the industry’s workers, Anita added, as some companies had decided to furlough employees to reduce operating and overhead costs.
