Indonesias Shipbuilding Industry to Get Incentives

The Indonesian government plans to boost the shipbuilding industry by removing import duties on raw materials and ship components. Minister of Industry Saleh Hussein highlights incentives like tax removal to support growth. The government also considers tax allowances to enhance connectivity between islands. Indonesia currently has around 200 shipbuilders, with a capacity of up to 70,000 deadweight tonnes. The country aims to build larger ships by 2015, focusing on oil tankers, despite high production costs compared to Vietnam and China.

What is one of the key strategies the government is using to boost the shipbuilding industry?

• Removing import duties on raw materials

• Increasing import duties on raw materials

• Increasing borrowing costs

• Reducing the number of shipbuilders

What additional incentive is the government considering to support the shipbuilding industry?

• Increasing tariffs on imports

• Introducing new taxes

• Lifting value-added tax

• Reducing ship production

Where are most of Indonesia's shipbuilders located?

• Bali and Lombok

• Jakarta and Surabaya

• Java and Sumatra

• Batam, Tanga, and Lamon

What is Indonesia's target for shipbuilding by 2015?

• Reducing ship production

• Focusing on passenger ships

• Building larger ships, especially oil tankers

• Building smaller fishing boats

How do Indonesia's production costs compare to other Asian countries like Vietnam and China?

• They are higher due to borrowing costs and tariffs

• They are lower due to government subsidies

• They are lower due to cheaper labor

• They are about the same