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SHIPYARD Bulu Kumba, South Sulawesi Dumai, Riau Batulicin Study on the Development of Domestic Sea Transportation and Maritime Industry in the Republic of Indonesia (STRAMINDO) - Technical Report 2 - SHIPYARD Bulu Kumba, South Sulawesi Dumai, Riau Batulicin, South Kalimantan Study on the Development of Domestic Sea Transportation and Maritime Industry in the Republic of Indonesia (STRAMINDO) - Technical Report 2 - TABLE OF CONTENTS 1. INTRODUCTION 1.1. BACKGROUND .................................................................................................................1 1.2. EXISTING PROBLEMS..................................................................................................... 2 1.3. STUDY OBJECTIVES........................................................................................................ 3 1.4. SCOPE OF WORKS ........................................................................................................... 3 1.5. ORGANIZATION OF THE REPORT................................................................................. 4 2. METHODOLOGY AND LITERATURE REVIEW 2.1. INTRODUCTION ...............................................................................................................5 2.2. FLOWCHART OF THE STUDY........................................................................................ 5 2.3. GENERAL UNDERSTANDINGS...................................................................................... 7 2.3.1. Modernization......................................................................................................... 8 2.3.2. Traditional Shipping................................................................................................ 8 2.4. LITERATURE REVIEW................................................................................................... 10 2.5. METHOD OF ANALYSIS ................................................................................................ 12 2.6. PREVIOUS RESEARCH FINDINGS .............................................................................. 14 2.7. STUDY AREA................................................................................................................... 16 2.8. DATA SOURCES .............................................................................................................. 17 2.9. DATA PRESENTATION ................................................................................................... 18 3. OVERVIEW OF GENERAL CONDITION OF TRADITIONAL SHIPPING INDUSTRY 3.1. INTRODUCTION ............................................................................................................. 19 3.2. GEOGRAPHICAL CONDITION ..................................................................................... 19 3.3. INFRASTRUCTURE CONDITION................................................................................. 20 3.4. GENERAL CONDITION OF DOMESTIC SHIPPING INDUSTRY .............................. 21 3.5. SUPPLY SIDE OF THE PELRA INDUSTRY .................................................................. 23 3.5.1. Fleet Number of Pelra........................................................................................... 23 3.5.2. Number of Pelra Companies................................................................................. 24 3.5.3. Route Networks .................................................................................................... 26 3.6. THE DEMAND SIDE OF THE PELRA INDUSTRY ...................................................... 26 3.7. TRADITIONAL SHIPPING ASSOCIATION (PELRA ASSOCIATION)........................ 28 i Study on the Development of Domestic Sea Transportation and Maritime Industry in the Republic of Indonesia (STRAMINDO) - Technical Report 2 - 4. POLICIES FOR ECONOMIC, TRANSPORTATION AND TRADITIONAL SHIPPING DEVELOPMENT 4.1. INTRODUCTION..............................................................................................................30 4.2. POLICIES FOR NATIONAL ECONOMIC DEVELOPMENT........................................30 4.3. POLICIES FOR NATIONAL TRANSPORTATION DEVELOPMENT...........................31 4.4. POLICIES FOR MARITIME DEVELOPMENT..............................................................32 4.4.1. Vision and Mission of Law No. 21/1992...............................................................32 4.4.2. Category of Maritime Industry..............................................................................33 4.5. POLICIES FOR TRADITIONAL SHIPPING DEVELOPMENT ....................................34 5. ANALYSIS OF BUSINESS PRACTICES OF TRADITIONAL SHIPPING INDUSTRY 5.1. INTRODUCTION..............................................................................................................38 5.2. MODERNIZATION ASPECTS AND STAKEHOLDERS ROLES ..................................38 5.3. SHIP OWNER....................................................................................................................41 5.3.1. Marketing Expansion.............................................................................................41 5.3.2. Management Improvement....................................................................................42 5.3.3. Cargo Handling Operations...................................................................................42 5.3.4. Vessel Replacement...............................................................................................42 5.4. SHIP OPERATOR..............................................................................................................43 5.4.1. Management Improvement....................................................................................43 5.4.2. Marketing Expansion.............................................................................................47 5.4.3. Cargo Handling Operation.....................................................................................48 5.4.4. Vessel Replacement and Technological Innovation...............................................48 5.5. SEAFARER........................................................................................................................49 5.5.1. Management Practices...........................................................................................49 5.5.2. Marketing Expansion and Changing Business ......................................................50 5.5.3. Cargo Handling Operations...................................................................................50 5.5.4. Vessel replacement ................................................................................................51 5.6. SHIPPER............................................................................................................................51 5.6.1. Marketing Expansion.............................................................................................51 5.6.2. Management Improvement....................................................................................51 5.6.3. Vessel Replacement...............................................................................................52 5.7. SHIPBUILDER..................................................................................................................52 5.7.1. Management Improvement....................................................................................52 5.7.2. Marketing Expansion.............................................................................................52 5.7.3. Vessel Replacement...............................................................................................53 5.8. SWOT ANALYSIS OF TRADITIONAL SHIPPING OPERATIONS ..............................53 ii Study on the Development of Domestic Sea Transportation and Maritime Industry in the Republic of Indonesia (STRAMINDO) - Technical Report 2 - 6. ROADMAP FOR MODERNIZING TRADITIONAL SHIPPING INDUSTRY 6.1. INTRODUCTION ............................................................................................................. 58 6.2. MODERNIZATION ROADMAP ..................................................................................... 58 6.3. DEVELOPMENT STRATEGIES ..................................................................................... 61 6.3.1. The Short-Term Strategy....................................................................................... 62 6.3.2. The Medium-Term Strategy.................................................................................. 64 6.3.3. The Long-Term Strategy....................................................................................... 66 6.4. ACTION PLANS............................................................................................................... 68 6.4.1. Human Resources Development........................................................................... 68 6.4.2. Port Infrastructure Development........................................................................... 69 6.4.3. Introduction of Standard and Technology............................................................. 70 6.4.4. Supporting Policies ............................................................................................... 71 7. CONCLUSION AND RECOMMENDATION 7.1. CONCLUSION.................................................................................................................. 72 7.2. RECOMMENDATIONS ................................................................................................... 73 iii Study on the Development of Domestic Sea Transportation
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