The Indonesian government has assigned around US$292.5m to construct new passenger and freight ships under the revised 2015 state budget.

The investment will be directed toward construction of 15 cargo ships and 10 passenger ships, the Jakarta Post quoted the country's Transportation Ministry official Bobby Mamahit as saying.

The move forms part of the Indonesian President Joko Widodo's maritime highway initiative aimed to introduce new and upgrading exiting trade routes across the country.

The ships are projected to join the country's fleet in two years.

According to Mamahit, the ministry plans to launch a tender for private freightliners to operate the new ships and offer subsidies that could reach Rp15m per day to compensate for fuel and other costs.

The ministry said that the country's shipbuilding plans for 2015 will also include construction of 25 new patrol ships and 10 navigation ships.