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The Ministry of Finance of the Republic of Indonesia has given approval for the country to secure up to USD 2.16 billion in foreign loans, which will be utilized to acquire air-independent propulsion (AIP)-)-capable submarines. This significant move reflects Indonesia’s commitment to bolstering its naval capabilities and enhancing its maritime defence.

Indonesia’s naval shipbuilder, PT PAL, and France’s renowned naval defence company, Naval Group, entered into a preliminary agreement on February 10th to collaborate on the construction of two Scorpène submarines for the Indonesian Navy (Tentara Nasional Indonesia – Angkatan Laut: TNI-AL). These submarines are equipped with advanced air-independent propulsion technology, which provides increased operational endurance and stealth capabilities, making them a valuable asset for Indonesia’s naval forces.

Moreover, Naval Group has expanded its cooperation in the region by signing a Memorandum of Understanding (MoU) with MDL (Mazagon Dock Shipbuilders Limited) this July. Under this collaboration, This partnership has generated considerable enthusiasm, as it positions MDL as a key player in Indonesia’s submarine program.

MDL’s role in this endeavour encompasses several crucial aspects:

  1. Training: MDL will provide training to engineers and workers from PT PAL Indonesia Naval Engineering Company. This training will impart essential skills and knowledge required for submarine construction and maintenance.
  2. Maintenance: MDL will extend its support to PT PAL Indonesia by assisting in the maintenance of the submarines. This includes sharing expertise and experience in maintaining and servicing submarines.
  3. Construction Activities: MDL’s expertise will be deployed to oversee and optimize the construction activities. This collaborative effort aims to ensure the successful and efficient completion of the submarine program.

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