Indonesia Deliberating the Purchase of Submarines from Germany

Mar 2021

The Indonesian Ministry of State-Owned Enterprises and the Ministry of Defense (MoD) is in discussion with German shipbuilder Thyssen-Krupp Marine Systems (TKMS) to potentially procure Type 214 diesel-electric submarines (SSKs) for the Indonesian Navy (TNI-AL). The purchase of Type 214 SSK submarines is included in the MoD’s ‘Blue Book’ which lists proposed procurement plans for funding approval. Importantly, the third phase of Indonesia’s 2020-2024 Minimum Essential Force stipulates the procurement of four submarines.

It is reported that TKMS and the MoD held discussions about TNI-AL’s operational requirements, work sharing arrangements for the local shipbuilding industry, infrastructure support and financing options. A visit to state-owned military company PT PAL’s submarine production facilities in Surabaya, East Java is also in order. It is worth highlighting that under Indonesia’s laws, it is compulsory for foreign submarine builders and suppliers to perform transfers of technology.

(Sources: Jane’s; The Jakarta Post)

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