Indonesian shipyards rely on cluster to handle large orders

Shipbuilders in East Java, Indonesia, rely on the Surabaya Shipbuilding Industry Cluster (KIKSA) to handle large orders.

"The cluster tries to put shipbuilding's core industry, suppliers, users and supporting industries into a synergy," president director of state-owned shipbuilder PT Dok and Perkapalan Surabaya, Muhammad Firmansyah Arifin told. "The synergy allows us to spread orders or overhead costs to a number of shipbuilders when there is a fuel prices hike." The shipbuilding industry in Indonesia is booming as a result of the IMO's new enforcement regulations stipulating that all single hull ships be replaced by double hull ships. The cluster was established in September 2006 and its core members include state-owned PT PAL as well as some privately-owned builders such as PT Ben Sentosa.
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