Samudera Shipping Line has finalized the sale of its 18-year-old Indonesia-flagged oil tanker, the Sinar Emas.
Under an agreement with an undisclosed buyer, the unit was sold at a price of USD 6.9 million, as agreed on a willing buyer-willing seller basis.
Samudera Shipping informed that the proceeds from the transaction would be used for working capital and business expansion of the group.
Under the current Indonesian shipping law, the company is restricted from owning and registering new Indonesia-flagged vessels. Therefore, it will not be able to acquire new ships to rejuvenate the aging Indonesia-flagged fleet.
The company opted to sell the unit as part of its strategic approach of gradually selling or scrapping Indonesia-flagged vessel. Once these vessels are disposed of, the group will cease to provide shipping services for domestic route within Indonesia.