Open Indonesian Business for Repair and Maintenance of Ships

Updated on Friday 14th January 2022

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Indonesia relies on the shipping industry which represents one of the most developed branches of the country’s economy. There are various subsectors of the maritime industry in which companies can be opened in Indonesia, one of the most prolific ones being the repair and maintenance of ships and shipyards.

Foreign investors who want to establish an Indonesian company for the repair and maintenance of ships must fulfill certain requirements in accordance with the local regulations.

Our company formation consultants in Indonesia can explain the legal requirements related to opening a business for repair and maintenance of ships as a foreign entrepreneur in this country.

Requisites for opening a ship repair company in Indonesia

Under the Company Law, a foreign investor needs a local partner in order to set up a company in Indonesia, no matter the industry one chooses. The foreign-owned limited liability company is available for full foreign ownership, however, the investment must be significantly higher.

In order to start a business which will offer repair and maintenance services to vessels, the future business owner will need to prepare a set of documents among which the company’s Articles of Association which must contain information such as:
  •           the name and personal information, such as the residential address of the owner;
  •           information about the company’s management structure and appointment of directors;
  •           the main object of activity of the company and its legal address in Indonesia;
  •           information about the share capital of the company and the benefits brought to the community.

In the case of foreign entrepreneurs, this information must be first submitted with the Investment Coordinating Board which must approve the investment plan and then filed with the Trade Register. After these procedures are completed, the Companies Registrar will issue the business license of the Indonesian company. The founder of the company does not need to immigrate to Indonesia in order to register the business.

Boat repair and maintenance businesses in Indonesia can operate in the designated shipyards or outside them.

Our local specialists can help foreigners with the whole Indonesian company incorporation procedure of a business for offering repair and maintenance services for vessels.

Among the types of ships which can be serviced by Indonesian companies, we mention pleasure boats as these are part of the tourism industry in Indonesia, but also cargo ships used for import and export activities and other commercial purposes.

Services offered by Indonesian companies in the repair and maintenance sector

Considering most Indonesian companies in the maritime sector are organized in shipyards, the services these can offer are quite many and very complex. Among these, we mention:
  1.           repair services which can include welding, steelwork and conversion of ships;
  2.           maintenance of equipment and bodywork repair services on all types of ships;
  3.           docking, haulage and warehousing services, as well as maintenance service during docking;
  4.           repair and maintenance services of mechanical and machinery equipment on board ships;
  5.           electric and electronic repair and maintenance services on all types of vessels;
  6.           painting, blasting and all sorts of pipe repair and maintenance services.

Shipyards in Indonesia can also offer various types of storage facilities for trading companies.

Why open a ship repair and maintenance of ships business in Indonesia?

The ship repair and maintenance branch is part of the maritime industry in Indonesia, which is one of the most developed and promoted economic sectors of the country. Indonesia has good trading relations with countries all over the world.

Being an insular country, Indonesia has a 95,000 km coastline with access to the Indian and Pacific oceans which makes it a great trade corridor for Asian and Western countries. Relying on one of the youngest workforces in the world, Indonesia has a great development potential when it comes to the employment facilities it can offer to ship repair and maintenance businesses operating here.

In the last few years, the shipbuilding and sea transportation industries have increased a lot thanks to the substantial economic growth registered by Indonesia and in the near future, the percentage of companies offering repair and maintenance services to commercial vessels is expected to grow.

The number of shipyards in Indonesian ports is close to 240 and it expected to increase in the years to come thanks to the high demand coming from the local and global markets and international companies transiting Indonesian waters.

If you are interested in starting a business for repair and maintenance of ships in Indonesia, please contact our local representatives who offer specialized company formation services.
Our specialists can also give you details if you wish to immigrate to Indonesia.