Key Points
Indonesia aims to boost domestic shipbuilding industry with renewable energy incentives
Country lags behind nations like Japan in maritime clean energy adoption
Regulatory barriers complicate retrofitting ships with new technologies
Initiative aligns with Indonesia's 2050 net zero emissions commitment
The move aims to strengthen energy independence and align with the country's long-term commitment to achieving net zero emissions by 2050.
"Electric cars and electric motorcycles receive incentives. Ships should also be included in this scheme. The important issue is how ships built with new and renewable energy can get incentives, including refurbished ships," said Antoni Arif Priadi, Director General of sea transportation at the Ministry of Transportation, on Tuesday.
According to Antoni, Indonesia's shipbuilding industry currently lags behind other countries in new and renewable energy adoption. He cited Japan as an example, where hydrogen-powered vessels are already being developed, whereas Indonesia is still in the early stages of using biodiesel.
"There are several shipping companies that have started constructing ships with electric main engines rather than traditional combustion-based systems. However, Indonesia still relies on petroleum. The challenge now is to determine the most suitable new and renewable energy solution for our country," he said, Xinhua news agency reported.
He also highlighted regulatory barriers to new and renewable energy adoption in shipping. Unlike passenger vehicles, the retrofitting process for ships is not as straightforward. He called for policy changes to ease the process of incorporating new technologies into existing vessels.
