Incentives for Indonesia’s shipbuilding industry
The Indonesian government said it is establishing a set of incentives to spur growth in the shipbuilding industry. The plan is part of efforts to help realize the so-called maritime axis platform.
According to local media, the government has decided to scrap import duties on ship components and the value-added tax (VAT) to spur growth in the local shipbuilding industry, Indonesia's industry minister Saleh Husin explained.
Indonesia has more than 200 shipyards. However, maritime industry groups like the Indonesia National Shipowners Association (Insa) and the Indonesian Offshore Industry and Shipping Association (Iperindo) have called for the abolition of import and value-added taxes to help build up the shipbuilding industry in other regions outside Batam.