Integrated ship recycling industrial estate design concept for Indonesia

Since the implementation of the cabotage principle, the number of Indonesian flagged ships has been increasing significantly, due to the government's incentive on importation tax for used ships. The fleet is dominated by old ships, which most of them will soon be sent for recycling. The ship recycling industry has a great opportunity for the economy of Indonesia, because of its contribution to the steel industry and job creation, but on the other hand it is also a very environmentally unfriendly industry. Currently there is no ship recycling yard complies with the requirements of international and national regulations, most of them are still implementing conventional method, and are not connected to the supporting industries. Based on these issues the study was aimed to design a concept of an integrated green and sustainable ship recycling industry estate, which has all necessary industries and facilities in it, and efficiently connected with each other. Block Plan program was used to optimize the arrangement. It is proposed that five ship recycling yards, large; medium; and smaller capacity, steel mill, waste treatment facility, electricity power plant, fresh water facility, training centre, workers accommodation, hospital, and bus terminal should be included in the estate.