Fincantieri has signed a contract with Indonesia’s Ministry of Defense to supply six FREMM multipurpose frigates and two used Maestrale class frigates to the country’s armed forces, the Italian shipbuilder revealed earlier this month.
The purchase addresses Indonesia’s mounting concerns over its ability to defend its maritime territories. It also strengthens collaboration between the two countries.
According to Fincantieri, the deal will ensure significant employment benefits for Italian shipyard workers and numerous small and medium-sized companies.
“The acquisition of an order of this magnitude allows Fincantieri to also assume global leadership in the surface ships sector, and is the confirmation of the technological leadership of a project once again considered the most innovative on the market…” Fincantieri CEO Giuseppe Bono said.
“Finally, I want to acknowledge our Navy, which has made a decisive contribution to building together with the Country’s industry a ship that is appreciated all over the world and which fully satisfies its operational needs,” he added.
$125 Billion Military Modernization Plan
Last week, Indonesia disclosed plans to invest $125 billion over the next three years in upgrading and modernizing its military arsenal. Nearly two-thirds ($79.1 billion) of the budget will be allocated for new military equipment, while $32.5 billion will be used for contingencies and maintenance.
A document obtained by BenarNews states that the southeast Asian nation will rely on foreign loans to fund the modernization plan. However, it did not reveal what type of armaments the government is planning to procure.
“Many of our defense systems are aging, so replacing them is urgent,” Indonesian Defense Minister Prabowo Subianto said. “This is very important to respond to the ever-changing strategic environment.”