REPUBLIKA.CO.ID, PONTIANAK -- The Study Center of Public Policy (Puskepi) said the government policy banning state companies from building ships abroad needs to be backed up with a presidential regulation.

In addition the regulation should not only be limited to state companies but the regulation should also be applied to other state agencies, Puskepi director Sofyano Zakaria said here on Monday.

The policy of President Joko Widodo deserves support from all as it concerns the interest of the national shipbuilding industry,Sofyano said.

In addition, the government needs to provide incentives for investment in shipbuilding industry to improve the competitiveness of the industry, he said.

The incentives could be a cut or exemption of import duties on materials needed for the industry, he said.

"We have to appreciate Pertamina ( state oil company), which already long adopted the policy. It is a reflection of concern for the development of domestic industry," he said.

Bonuses or tax facility should be given to companies or agencies having their ships built by domestic shipbuilding facilities, he said.

Data at Pertamina showed that in the last decade, Pertamina had 32 units of tankers built in the country and in 2010-2015, the company has 18 new tankers built domestically.

Currently Pertamina is building 10 units of tanker measuring 17,500 tons, including two units built at PT PAL, two at Anggrek Hitam, three at Multi Ocean Shipyard, three units at PT Daya Radar Utama Lamongan.

Sofyano Zakaria said the first order for the biggest vessels that could be built by domestic shipyards always came from Pertamina.

Currently Pertamina needs 180 tankers for the distribution of oil fuel (BBM).

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