Fincantieri has signed an agreement with Indonesian defense group Republikorp to establish a joint venture focused on designing, building, selling, and maintaining naval vessels for Indonesia’s Defense Ministry.
The deal was unveiled during the Euronaval exhibition in Paris and will be carried out through PT Republik Palindo Internasional (RPAL), a subsidiary of Republikorp.
The planned venture will pursue projects involving multirole surface ships, submarines, and next-generation corvettes.
Local Production and Training
The partnership covers technical assistance, shipyard upgrades, and personnel training, as well as efforts to develop Indonesia’s local supplier base.
Fincantieri will contribute its expertise in naval design, construction, systems integration, and lifecycle support, while RPAL will provide local industrial capabilities and knowledge of Jakarta’s defense sector.
The companies aim to expand domestic capacity for engineering, production, and maintenance, allowing more work on naval vessels to be carried out within Indonesia.
The venture could also pursue selected naval projects in other parts of Southeast Asia.
Aircraft Carrier Cooperation
The latest agreement follows a separate cooperation framework signed in September between Fincantieri and Surabaya-based PT PAL Indonesia to modernize the Indonesian Navy’s first aircraft carrier, KRI Sriwijaya.
Formerly known as ITS Giuseppe Garibaldi, the ex-Italian Navy vessel arrived in Indonesia in September after sailing from Europe under escort by two Indonesian Navy Thaon di Revel-class offshore patrol vessels.
Italy transferred the retired carrier under a government grant agreed earlier this year.
The acquisition of the 41-year-old vessel has sparked debate in Indonesia over the costs of operating and upgrading it, as well as its value to the country’s defense strategy.
