Seatrium sells Karimun shipyard as part of non core asset divestment drive

By Rara Suratmi

Seatrium Ltd has divested its Karimun shipyard in Indonesia for S$22 million as part of a broader strategy to streamline operations and exit non core assets, the Singapore based offshore and marine group said on Monday.

The sale of the yard on Karimun Island was executed through subsidiary PT Karimun Sembawang Shipyard under a binding agreement signed on Dec. 31, 2025 with PT Tirta Segar Alami, a related party of the Salim Group. The consideration will be paid in cash, with completion expected by the first quarter of 2026 subject to customary conditions.

Seatrium said the divestment is intended to enhance capital and operational efficiency while unlocking value from a surplus facility whose activities had declined in recent years. Most land leases at the yard are set to expire in September 2026.

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Karimun Sembawang Shipyard is a roughly 30 hectare yard located in Teluk Paku on Karimun Island, about 40 km from Singapore, providing afloat ship repair, steel fabrication, tank cleaning and work vessel construction services. The facility offers deep water access suitable for large vessels and has historically complemented Seatrium’s Singapore operations as a cost efficient extension close to the Malacca Strait shipping lane.

Operational work previously undertaken at Karimun has been relocated to nearby facilities, with the group centralising its Indonesian yard footprint at its larger Batam yard, which remains a strategic base supporting regional projects.

The Karimun sale forms part of a wider programme of non core asset disposals alongside other transactions, including tugboat fleet and floating dock divestments, which the company said are expected to deliver more than S$50 million in annualised cost savings once completed by early 2026.

Editing by Alexander Ginting