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 types of ships is Indonesia targeting to build by 2015, and why?

How do the production costs in Indonesia compare to those in other Asian countries like Vietnam and China?