Strategy for Improving the Competitiveness of Shipyards in the Eastern Part of Indonesia

Abstract

In recent years, the number of shipyards in Indonesia has increased significantly to anticipate the increasing demand and the government policy regarding the Cabotage Principles and Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MAEIED), and three Archipelagic Sea-Lanes (ASL’s) in Indonesia. However, shipbuilding and ship repair works have been centered in the western part of Indonesia. Therefore, this study aims to develop a potential strategy of shipyards in the eastern part of Indonesia to compete in the current market situation. The Analytical Hierarchy Process (AHP) method was used to model the strategy hierarchy and analyze the weight of sub-criteria as the internal and external factors of the shipyard competitiveness. Then, the Blue Ocean Strategy method was used to analyze the competitiveness strategy. To improve competitiveness, the shipbuilding industries in the eastern part of Indonesia have to focus intensively on reforming and upgrading several internal environment factors such as coordination and response, business network, high skill manpower, and complex ship types building ability. Besides, the shipyards also have to focus on external environmental factors, particularly on five factors that have a high influence on improving competitiveness, namely shipping company partners, networks and partnership with suppliers, government policies, human resource development, and cluster formation of shipyards.

Swot-Ahp Hybrid Method for Ranking the Strategies in the Shipbuilding Sector

“…The introduction of the strategy WT aims to use a more active, even aggressive behavior of the Romanian shipyards that allow maintaining and development of the niche market won. In addition to the internal and external environment of the shipyard, this market strategy will take into account the worldwide manifestations aimed at increasing competitiveness (Baso et al, 2020).…”

“…Starting from the fact that there are very few studies (Ma'ruf, 2009;Lumaksono, 2014;Hossain et al, 2017;Syahtaria et al, 2019;Baso et al, 2020) on defining and prioritizing strategies aimed at improving the situation of the shipbuilding sector, the paper aims a study in this regard. Thus, the purpose of this study is to determine the current situation of the Romanian naval sector, using the SWOT matrix, and the formulation and classification of the strategies that would increase the performance of this industry, using as criteria the sub-factors in the SWOT matrix.…”

Studi klasterisasi industri galangan kapal kayu berdasarkan ukuran kapal perikanan di Banda Aceh dan Aceh Besar dengan menggunakan metode Analytical Hierarchy Process (AHP)

“…Lebih jauh lagi, galangan kapal dapat menawarkan berbagai spesifikasi produk kepada pelanggan, termasuk jenis struktur kapal yang kompleks. Ini akan meningkatkan daya saing galangan kapal di masa depan (Baso et al, 2020).…”