Military Capabilities

Indonesia allocates USD1.9 million for consultancy work on sixth submarine

27 August 2018

Key Points

  • Indonesia has moved closer towards acquiring a sixth submarine for its navy
  • Consultancy project aimed at establishing more beneficial technology transfer arrangements

Indonesia’s Ministry of Defence (MoD) has set aside a total sum of IDR283.8 trillion (USD1.9 million) for consultancy services in relation to the acquisition of a sixth submarine for the Indonesian Navy (Tentara Nasional Indonesia-Angkatan Laut: TNI-AL).

A document on this allocation, which was obtained by Jane’s on 28 August from the ministry’s directorate for defence potential, indicated that the funds will be drawn from Indonesia’s defence budget allocation for 2018.

A specific focus on the consultancy will be on transfer-of-technology (TOT) arrangements, and how Indonesia’s local industry can better benefit from the contract for a sixth submarine when it materialises.

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