The Indonesian shipbuilding industry is recovering from a two-year-long downturn as shipbuilders benefit from an influx of both domestic and overseas orders, a government official has said.

"The industry is expected to grow by 9.5 percent this year and surpass 10 percent next year as shipbuilders have received major orders from both local and overseas customers," Julius Tang ketasik, a senior official at the Industry Ministry, was quoted Wednesday by English daily The Jakarta Post as saying.

Made up of more than 250 ship- and boat builders, the industry grew by 7 percent last year, higher than 2005's growth of 6 percent, according to the directorate general of transportation and communication industry.

The figures also reveal that the maximum capacity of the national shipbuilding industry is expected to reach a total of 450,000 deadweight tons (DWT) this year, with shipbuilders operating at 65 percent capacity.

These figures compare with 400,000 DWT and 55 percent capacity last year.

Source:Xinhua