As a maritime country that has fairly extensive territorial waters and more than 37.000 islands, Indonesia would require transportation to connect the islands and mainland to other small islands. It is become the strong reason why the shipping industry needs to be developed in Indonesia. Indonesia as the country's maritime has potentially increase the shipping industry. As the high demand for domestic and international ships, shipbuilding industry began to rise. There is significant increase from the amount of the ships (19.79%) and haulage (24.89%) for the last 2 years. It is expected that by 2011, a national ship transport capacity become 1.5 million DWT from last year (76.47% increases).
(Source: PT Persero Pelabuhan Indonesia III; 12 March 2011)

The total installed capacity of the national shipbuilding from 2005 to 2009 reached 650 thousand DWT. By the end of 2010, the installed capacity of targeted national shipbuilding rose to 850 thousand-1 million DWT. While in year 2011 is targeted to increase to 1.3 million DWT.

While the utilization of shipyards for new ship production reached 80 percent, approximately only 50-60 percent of the industries which produce small capacity vessel under 15,000 DWT. Thus, not many national shipyards are capable of producing over 15.000 DWT ships. But, from average docking capacity per year, the industry is experiencing shortage of shipyard capacity docking facility of 1.8 million GT per year.
(Source: Arsipberita.com 12 April 2011)

Nowadays, shipyard industries have slightly shifted from previously based in Europe turned into Asia. This condition gives an opportunity for Indonesia to become one of the main shipyard industries in Asia such as Japan, China, and Korea.
(Source: Okezone.com 3 Jan 2011)

Ships in the domestic production needed to meet the needs of transportation, oil & gas supply and defense purposes. The potential of the shipping industry this year increase along with the needs of the ship. First to transportation needs in the oil and gas sector. Furthermore, to meet the needs of boats for PT PERTAMINA and the last is for the reconstruction of merchant ships.
(Source: http://.hileud.com 4 January 2011)