Japanese investor to build ship repair facility in Indonesia

Jakarta (ANTARA News) - A Japanese shipbuilding company, Tsuneishi Ship Building, plans to invest US$40 million in a ship repair project in Indonesia, chief of the Capital Investment Coordinating Board (BKPM) Franky Sibarani said.

Tsuneishi made the commitment at a meeting in Fukuyama with Franky Sibarani when the latter visited Japan last Monday.

"At the meeting , the management of Tsuneishi pledged to invest US$40 million in the first phase. The investment would likely be increased with expansion," he was quoted as saying in a statement.

He said the Japanese company has long indicated interest in expanding operation to Indonesia.

He said he has invited the company leaders to visit Indonesia to determine the location for their project.

BKPM representative office in Tokyo will facilitate the company in the process of licensing.

"At least there are five potential locations to be recommended - Lampung, Lamongan, Surabaya, Makassar and Manado. Lampung and Lamongan have been developed as center for integrated shipbuilding industry.

Chairman & President of Tsuneishi Holding Yasuharu Fushimi said his company plans the investment in two phases.

The first phase the company would build ship repair facility and in the second phase the company would build shipbuilding facility, Yasuharu said.

"We see a big potentials for ship building industry in Indonesia. There are around 3,293 ships that will make a potential market for ship repair service in Indonesia a year," he was quoted as saying.

Tsuneishi Ship Building is the 7th largest ship building industry in Japan . It has shipyards in Cebu in the Philippines , in Zoushan, China, and in Paraguay.