18 October 2022
by Ridzwan Rahmat
An ex-South Korean Pohang-class corvette that is now in service with the People's Army of Vietnam Navy. Indonesia had plans to acquire a similar vessel with foreign-sourced loans. (Michael Nitz/Naval Press Service)
The Indonesian Ministry of Finance (MoF) has declined a proposal for the country to fund a possible purchase of an ex-Republic of Korea Navy (RoKN) Pohang-class corvette with foreign loans in 2022.
The declination was confirmed in a notice made out by the MoF to the Indonesian Ministry of National Development Planning (BAPPENAS) in October 2022.
However, the notice, which has been provided to Janes by a government source on 17 October, did not indicate a reason for the rejection.
As reported by Janes in September 2022, BAPPENAS has included the possible corvette acquisition in the revised register of naval programmes for which foreign-sourced loans have been proposed as a source of funding.
The annual register is better known in-country as the ‘green book' and an earlier version of it was released in May 2022. It was revised in September to include additional programmes that have been flagged by the respective armed forces services as pressing requirements.
The ‘green book' section covering military programmes was submitted by the defence ministry to BAPPENAS after consultation with the various armed services, and the total amount of foreign loans sought for military programmes after the September 2022 revision adds up to about USD2.4 billion.
These loans are meant to complement the country's 2022 defence budget of IDR134 trillion (USD9 billion), of which IDR43.2 trillion has been allocated for procurement and sustainment programmes.
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The Indonesian Ministry of Finance (MoF) has declined a proposal for the country to fund a possible ...