Indonesia assents plan to fund carrier acquisition with foreign loans

Ex-Italian Navy aircraft carrier Giuseppe Garibaldi , which may soon be transferred to the Indonesian Navy. (US Navy)

Indonesia's Ministry of National Development Planning (BAPPENAS) has assented to plans for the country to fund the acquisition of an ex-Italian Navy aircraft carrier with foreign loans.

Documents provided to Janes by a source close to the matter indicate that the plan was formally assented to in a 29 August letter sent by Indonesia's Minister of National Development Planning Rachmat Pambudy to his counterpart at the Ministry of Defense, Sjafrie Sjamsoeddin.

An annexe accompanying the letter indicates that BAPPENAS has assented to a maximum loan quantum of USD450 million to fund the acquisition of the carrier and to purchase equipment that is necessary to support the vessel's operation.

Loans for these acquisitions can be sourced from either foreign export credit agencies, bilateral creditors, or private lending institutions, the annexe noted.

In addition to the acquisition of the ex-Italian aircraft carrier, BAPPENAS has also assented to plans for the country to acquire new transport and utility helicopters in the same letter.

A maximum loan quantum of USD250 million has been approved for the acquisition of transport helicopters, while the upper limit sum set for the acquisition of utility helicopters is USD300 million.

In pursuance of this, BAPPENAS has included these three programmes in a register of priority projects approved for foreign funding. While not explicitly stated in the annexe, these new helicopters will presumably operate from the ex-Italian carrier if its acquisition materialises.