UK and Indonesia agree landmark £4bn deal to develop maritime capability for Jakarta

The UK and Indonesia have agreed to a landmark £4bn maritime deal, which will see the two countries jointly develop capability for Indonesia's navy. 

The new maritime partnership programme, led by British defence firm Babcock, will see vessels being built in Indonesia using British shipbuilding expertise, with the majority of the roles expected to be secured at Babcock's Rosyth shipyard. 

It is hoped that the programme will enhance Jakarta's defence and maritime security and unlock major investment in local shipbuilding. 

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It follows the UK winning a £10bn contract with Norway to build the nation's next-generation anti-submarine warfare destroyers and an £8bn deal with Turkey for the export of 20 Typhoon fighter jets. 

"This deal with Indonesia is the latest example of how our strong international partnerships are delivering real benefit for people at home in jobs, opportunity and growth," Prime Minister Sir Keir Starmer said. 

"And as one of our closest G20 partners, it reinforces our joint commitment to global stability and bolsters our shared national security."

The new deal builds on existing maritime cooperation links between the two countries, including the UK Carrier Strike Group's visit to Jakarta over the summer and HMS Spey's stop-off earlier in the year. It will also pave the way for greater interoperability and joint training between both navies. 

The agreement underlines the UK and Indonesia's shared commitment to stability and prosperity in the Indo-Pacific, upholding freedom of navigation and supporting a rules-based international order. 

Through the deal, there will be joint research into next-generation shipbuilding practices, such as automation and AI. 

Babcock will also share skills in precision engineering, digital ship design, and integrated naval systems. 

"Babcock is proud to be leading the UK's industrial support for this international programme, which will advance critical Indonesian naval and maritime programmes," Babcock chief executive David Lockwood said. 

And Indonesia's president Prabowo Subianto said: "Through our historic partnership, we will develop and build our vessels domestically, supported by the expertise, experience and technology from the United Kingdom. 

"The programme marks a new phase in the Indonesia-UK bilateral relationship.

"This collaboration will mutually drive our economies, create high-quality jobs, and more importantly, advance Indonesia's shipbuilding and defence capabilities."

This programme forms part of the broader strategic partnership that the Prime Minister and the Indonesian president committed to in November last year.