German Business Mission to Indonesia: Shipbuilding and Maritime Technology Solutions

28.03.18 Aktuelles

As part of the German Federal Ministry for Economic Affairs and Energy’s (BMWi) Market Development Program for SMEs 2018, the German Indonesian Chamber of Industry and Commerce (EKONID) organized a 5-day event to assist market actors from the German Maritime Industry to enter the Indonesian market.

Held from February 25 to March 2, the event saw the participating companies being given a tour across the capital of East Java, Surabaya, and then to Indonesia’s capital of Jakarta, as well as Indonesia’s free trade zone of Batam in the Riau island province.

In his inaugural speech as President in October 2014, Joko Widodo, also known as Jokowi, stated that, as an archipelagic country, Indonesia must develop its vast maritime resources to raise its competitiveness. Since then, improvement on inter-island infrastructure has become one of the important development pillars of President Jokowi’s infrastructure development plans. A vocal point to his maritime infrastructure development plan is the Sea Toll project, which is a pendulum shaped sea traffic route that would connect Indonesia’s east to west axis.

Having started in November 2015, the operational element of the Sea Toll project has proven to lower prices of goods, as well as reduce dwell-time of vessel harboring in Indonesia’s ports. However, the massive project requires huge operational support, including for the repair of existing vessels and the procurement of new ones. In coinciding with the 5-day German maritime delegation’s mission to Indonesia this February to March, the Market for Development Program for German SMEs obtained positive response from Indonesian market players.

The mission would not have gone as smoothly without the cooperation of the German Shipbuilding and Ocean Industry Association (VSM). The delegates covered a comprehensive spectrum of the maritime sector: from marine power and propulsion system to marine supporting equipment construction. The business delegation for German SMEs was accompanied by Ms. Anja Stenger, representative of the Federal Ministry for Economic Affairs and Energy (BMWi) and Mr. Christian Schilling, Managing Director and Corporate Counsel of German Shipbuilding and Ocean Industry Association (VSM).

The main purpose of the business delegation was to introduce German maritime experts to Indonesian stakeholders within the maritime industry, as well as to establish a joint solutions to develop the Indonesian maritime sector. Aside from the high quality of German marine components – which is already well-known in Indonesia – further assistance of financing solutions in importing German components were also highlighted by the German Shipbuilding and Ocean Industry Association (VSM). Therefore VSM played an important role as an umbrella association representing the German Maritime Industry in Indonesia. Moreover, the German delegation had also the opportunity to generate business contacts during the event.

After the welcoming dinner and the introduction session on Sunday evening in Surabaya, the event was continued on Monday, starting with the group visit to PT Adiluhung Saranasegara Indonesia, one of the leading shipbuilding in Madura Island, PT Pelindo III, a state-owned enterprise with a main focus of operating the port terminal, and PT. Teknik Tadakara, one of Indonesian marine component producer. In the evening, the German delegations also took the opportunity to meet and mingle with the invited attendees within the maritime industry from Surabaya in a networking dinner.

Conference

The next morning, the program began with a Business Forum on Shipbuilding and Maritime Technology Solutions. Around 60 Indonesian participants from maritime Industry in Surabaya participated in the forum.

The Business Forum was opened by Mr. Martin Krummeck, Deputy Managing Director of EKONID, followed by Ms. Anja Stenger, representative of the German Federal Ministry for Economic Affairs and Energy (BMWi). In her speech, Ms. Anja Stenger also expressed German interest in extending a bilateral cooperation with Indonesia in the maritime sector as one part of the Ministry’s supports in regards to the signed MoU between the German and Indonesian Government in July last year.

In his following remarks, Mr. Budhiarto Sulaiman, the representative of Indonesia Shipbuilding and Offshore Association (IPERINDO), pointed out the relevance of the development of Indonesian Maritime facilities in fulfilling the demand of marine components and to improve the quality of Indonesian vessels. Afterwards, Mr. Christian Schilling, Managing Director and Corporate Counsel of the German Shipbuilding and Ocean Industry Association (VSM) outlined how both associations can support Indonesia in strengthening its maritime industry and explained the possibilities of bilateral business cooperation from their perspective viewpoints.

Throughout the conference, Indonesian participants had the chance to obtain first-hand knowledge about the core activities of each delegation’s company and exchange interesting information through individual B2B meetings.

On Wednesday, the program focused on gaining potential business partners for the German delegation in Jakarta. Accompanied by EKONID staff members, each of the delegates had individual meetings with major local companies. The day in Jakarta was completed successfully by a networking dinner with representatives of the local business community in Jakarta. 

The next day started with visits to PT ASDP Indonesia Ferry, the state-owned enterprise which operates 34 ferry ports; PT Pertamina Trans Kontinental, the ship provider for offshore industry; PT PELNI, a state-owned shipping company; and PT Samudera Indonesia, the cargo transportation and logistics company which covers more than 30 subsidiaries across the country.

The last day of the delegation’s program was spent in Batam where the delegation had visited the shipbuilding companies in Batam: PT Citra Shipyard, Batam Enterprise Agency (BP Batam), PT Palindo Marine and Batam Shipyard and Offshore Association (BSOA).

Overall, the responses from the participants of the event were very positive, reflecting the successful mission of each of the parties involved in the German Maritime Delegation 2018.