Indonesia holds offset talks with Abeking & Rasmussen for new hydrographic ship

KRI Rigel , one of four survey ships operated by the Indonesian Navy. The service is looking to procure an ocean-going survey vessel and has held talks with Abeking & Rasmussen to understand possible offset arrangements. (Indonesian Navy Office of Public Communications (DISPENAL))

Indonesia's Ministry of Defense (MoD) held a virtual meeting with German shipbuilder Abeking & Rasmussen to discuss the possible procurement of an ocean-going hydrographic vessel.

According to meeting documents provided to Janes by a government source, the event was held virtually on 3 September.

The meeting was headed by Director General of Defense Potential, Brigadier General Aribowo Teguh Santoso, while Abeking & Rasmussen officials were accompanied by representatives from the company's local agent PT Agrapana Nugraha Katara.

Also present during the meeting were representatives from Indonesian shipbuilders, PT Palindo Marine, PT Batamec, and PT Bandar Abadi, state-owned electronics company PT Len, and the deans of the machining and electro-informatics faculties at the Bandung Institute of Technology.

The source that provided Janes with the documents described the meeting as one that centred around how Abeking & Rasmussen can work with local companies should a contract for the hydrographic ship materialise.

Officials from the Indonesian MoD were also keen to understand if the vessel could be built in-country with assistance from German engineers, the source added.

Indonesia's Ministry of National Development Planning and MoD have approved a plan for the country to obtain up to USD150 million in foreign loans for the procurement of an ocean-going hydrographic ship.

It is one of 31 armed forces procurements, upgrades, and maintenance programmes for which permissions to source foreign loans have been approved by the ministries in 2021.