“We need to keep market [demand] going, starting with SOEs, which don’t buy a significant number of locally made ships,” Indonesian Shipbuilding Association (Iperindo) chairman Eddy K. Logam told The Jakarta Post on Tuesday.

Unlike the Transportation Ministry, which has ordered about 150 coastal, navigation and transfer ships, and the Maritime Affairs and Fisheries Ministry, which has ordered more than 1,000 fishing ships this year, the number of ships ordered by SOEs is insignificant.

(Read also: Indonesia's state-owned manufacturing enterprises aim to go global)

Eddy said SOEs should set an example and heed the government’s instruction to use locally made ships.

President Joko “Jokowi” Widodo has committed to revamping the local shipbuilding industry and instructed government ministries to procure only locally made ships. According to 2014 data, more than 90 percent of Indonesia’s 14,156 national vessels were imported.

In the President’s second economic policy package, shipbuilders are given tax incentives such as zero-value added tax and lower income tax.

Eddy lauded the launch of Indonesian first electric sea vessel, the MV Iriana, named after First Lady Iriana Joko Widodo, saying it was proof that Indonesia had the capability to build international-standard vessels.

State firm PT PAL Indonesia exported a warship to the Philippines last May. Thailand and Vietnam have reportedly ordered warships from the firm. Turkish company Karpowership also plans to build a floating power plant with the firm. (bbn)

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