The performance of the maritime industry of a country will determine the performance of its maritime security. The Indonesian maritime industry has been a victim of a policy that promotes trade much more than industry during the last 15 years and the consequence of a development that is too obsessed with growth at all cost during the last 40 years. Along with the reform of the TNI since 1998, in the 21st century, the national shipping fleet supported by the shipbuilding industry need to be designed to play a more significant role than mere supplementary or complementary to the navy fleet as a major component in the maritime security system. At present, the performance of TNI and the national shipping fleet as an important component of the maritime industry has not been capable to realise an effective maritime security. Many illegal activities in Indonesian waters including ones by foreign elements are rampant without sufficient response to prevent and control.