Indonesia reveals payment structure for new submarines

17 April 2019

Indonesia has revealed more details about how it intends to pay for three Type 209/1400 diesel-electric submarines ordered on 12 April from South Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME).

Agus Setiadji, the secretary-general of Indonesia's Ministry of Defence (MoD), told reporters on 16 April that the programme will be funded through loans covering 85% of the total value of the procurement with the remaining 15% sourced from the Indonesian state budget.

Setiadji said that the loan portion of the deal had not been finalised and that the Indonesian Ministry of Finance is in the process of identifying a lender.

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