The Indonesian shipbuilding industry, currently idling at 50 percent capacity, is expected to receive a welcome boost after the government announced a new rule that would require the oil and gas sector to rely on Indonesian vessels for its shipping needs, the Jakarta Post reported on September 5.

The MoU was signed in August and was based on a 2008 Maritime Law.

The Indonesian National Shipbuilding Industry Association (Iperindo) Secretary General, Wing Wirjawan, said that the local shipbuilding industry was capable of building almost 20 types of vessels that were needed by the oil and gas sectors. Other than FPSOs and FSOs, which are too large for Indonesian shipyards to build, yards were capable of producing AHTS vessels, tugs, mooring boats, barges and utility vessels.

Source: Baird Maritime