I too had my doubts about the location given. It looks a bit like Dutch East Indies (see the boat with the sun shelter). And indeed:
On December 1, 1881, the first dock of the Netherlands Indian Dry Docks Company was opened on the isle Amsterdam (=Pulau Amsterdam on the roadsteads of Batavia). The paddle steamer Hs.Ms. OENARANG under Captain Volck sailed on 19th November 1888 from Batavia to Pulau Amsterdam. It is very likely that the photo was taken on or around that date.
Moreover captain Volck was at the east coast of Sumatra in 1889 (Palembang or Musi River) aboard Hs.Ms. OENARANG (Source: archivesportaleurope.net).
That island in the roads at Batavia had a long history of ship repair. Captain Cook called there for some months on his first voyage, homeward bound, for repairs to HMS Endeavour.
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