| Summary: | Shipping is one of the world�s most capital- intensive industries due to the
high cost of purchasing a ship. Therefore, many shipping company in Indonesia
decide to invest in second- hand ship in order to minimize their investment cost. In
the long term, the operational cost of second- hand ships will be higher than the
new one, these costs include the repair and maintenance cost. Repair and
maintenance cost is need to be allocated by ships owner to ensure that the ship
will always be in the good condition during the economic lifetime of the ship.
This research aims to identify the determinant of expenditure in ship repair
and maintenance cost. Age, size and mileage as a proxy of utilization will be
tested as the independent variable of repair and maintenance cost determinant. 33
ro-ro ships will be the sample of this research, where all of those ships are owned
by PT ASDP Indonesia Ferry (Persero).
The result of this research shows that age, size and mileage have positive
and significant effect on ship repair and maintenance cost. All independent
variables can exp lain the 46,88 percent of ship and maintenance cost.
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