Jakarta. Greece has floated a possible shipbuilding partnership with Indonesia amid Athens’ shipyard revival and Jakarta’s dream of having higher fleet capacity.

According to Greek Deputy Foreign Minister Harry Theoharis, his country possesses “extensive expertise” in shipping, ship management, and maritime services. Given Indonesia’s archipelagic geography, maritime connectivity is vital to the country’s economic development. 

“Opportunities include port development, logistics, shipbuilding and repair, maritime education, professional training and greener shipping, alongside exchanges in maritime technology and operational efficiency,” Theoharis wrote to the Jakarta Globe in a written interview.

Greece — whose shipping represents 19.1% of the global fleet capacity — also seeks a “joint maritime committee”. Theoharis wants the committee to “coordinate dialogue, identify shared priorities, and advance practical initiatives”.

Indonesia’s National Shipowners’ Association (INSA) and Greek maritime organizations can team up for stronger business links and knowledge transfers.

Theoharis had discussed the shipbuilding partnership with his Indonesian counterpart Arif Havas Oegroseno in Jakarta earlier this month. State-owned port operator Pelindo and oil tanker firm Pertamina International Shipping held a business briefing to explore opportunities with Greek businesses at the time. 

An overhaul of Indonesia’s shipbuilding industry is in the pipeline. The government is ironing out a roadmap for a rebound as the country saw a negative trade balance in the industry.

State news agency Antara quoting Industry Minister Muhammad Sarmuji recently wrote that the government wants to expand shipyards outside Java and Batam to build vessels up to 30,000 deadweight tonnage (DWT) and tankers of around 60,000 DWT. The world’s archipelagic country laid out plans to produce passenger ships with 2,000 people capacity, as well as defense-related vessels.

At home, Greek shipyards are witnessing major privatization after years of state ownership and the 2009-2018 debt crisis. 

The full-year Greek investments in Indonesia totaled at least $949,000 as of end-September. Bilateral trade amounted to $295.7 million between January and August, still falling short of both sides’ $1 billion target.

In about a few months from now, Greek businesses will enjoy tariff eliminations and better investment certainty when doing commerce with Indonesia and vice versa, thanks to an upcoming European Union (EU) free trade agreement. This pact is known as the Comprehensive Economic Partnership Agreement (CEPA).

“We encourage companies on both sides to prepare by identifying partners, assessing market conditions and developing strategies to make full use of the agreement’s provisions. Promising areas for cooperation include shipping,” Theoharis said.

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