The Ministry of Finance of the Republic of Indonesia has approved a foreign loan of up to USD 2.16 billion to acquire air-independent propulsion (AIP)-capable submarines, signaling Indonesia's commitment to strengthening its naval capabilities and maritime defense.
Indonesia's naval shipbuilder, PT PAL, and France's renowned naval defense company, Naval Group, previously entered into a preliminary agreement 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, providing increased operational endurance and stealth capabilities, enhancing Indonesia's naval forces.
Naval Group has further expanded its regional cooperation by signing a Memorandum of Understanding (MoU) with MDL (Mazagon Dock Shipbuilders Limited) in July. MDL's role in this partnership includes training engineers and workers from PT PAL Indonesia Naval Engineering Company, assisting in submarine maintenance, and overseeing and optimizing construction activities. This collaboration positions MDL as a significant contributor to Indonesia's submarine program, fostering enthusiasm for the project's success.