The Indonesian Navy’s first Type 209/1400 submarine being prepared for launch. (DSME)
Indonesia is planning to consolidate government-owned shipyards into a holding structure under its primary naval shipbuilder PT PAL, the company has announced.
Under the proposed reorganisation, the new PT PAL holding company would be charged with enhancing capacity across naval and commercial ship construction and increasing related efficiencies.
The consolidation, which will involve up to 22 national shipbuilding enterprises, has been proposed by the government and will be led by Danantara, a state-run investment management agency.
PT PAL had not responded to Janes questions about the consolidation.
However, on 5 February, the company said in a press release that consolidation would bolster Indonesia’s strengths in shipbuilding.
PT PAL CEO Kaharuddin Djenod said in the press release, “PT PAL has been mandated to consolidate the fulfilment of domestic fleet needs. This is interpreted as a strategic step to strengthen domestic industrial sovereignty, where PT PAL is not a competitor but rather an orchestrator for 22 potential national shipyards.”
In leading the consolidated shipbuilding sector, Djenod said PT PAL would “supervise and standardise” the capabilities of national shipyards.
He added, “The success of PT PAL’s maritime industry transformation will be implemented at other shipyards in Indonesia, both state-owned and private, so that the entire national industry has the same competency standards and is able to compete with global players.”
Outlining the rationale of the consolidation, he added, “Shipyard consolidation is expected to improve efficiency, production scale, and the quality of ship design, construction, and maintenance, thereby reducing dependence on imports and increasing domestic added value.”
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