UK and Indonesia Strike $5.23B Maritime Deal
The U.K. and Indonesia have agreed a $5.23 billion (£4 billion) maritime deal that will secure around 1,000 jobs in Britain and strengthen defense and security cooperation in the Indo-Pacific.
The new Maritime Partnership Programme, led by British defense firm Babcock, will see both countries jointly develop maritime capability for Indonesia’s navy and build more than 1,000 vessels for its fishing fleet to support food security.
The vessels will be built in Indonesia using British shipbuilding expertise, supporting jobs at Babcock’s Rosyth yard, as well as at its Bristol and Devonport operations. In Indonesia, the program aims to revitalize local shipbuilding, strengthen fishing communities, enhance maritime security and advance food-security objectives.
“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. And as one of our closest G20 partners, it reinforces our joint commitment to global stability and bolsters our shared national security,” said Keir Starmer, U.K. Prime Minister.
The partnership builds on recent UK naval engagement in the region, including visits by the UK Carrier Strike Group and HMS Spey. It is expected to deepen naval interoperability, support joint training and contribute to freedom of navigation in the Indo-Pacific.
The program also includes technology transfer and joint research into next-generation shipbuilding, such as automation and artificial intelligence. Babcock will explore collaboration between UK and Indonesian educational institutions to develop skills in digital ship design, precision engineering and integrated naval systems.
Supported by the UK’s Blue Planet Fund, the vessels will be deployed in ways designed to support environmental protection and sustainable fisheries management, including projects on fish-stock assessment and marine conservation.
“The Maritime Partnership Programm between Indonesia and the UK is a major investment and commitment, building on the strong foundations between nations while driving economic growth for both countries.
“Babcock is proud to be leading the UK’s industrial support for this international program which will advance critical Indonesian naval and maritime programs. We will also generate positive economic impact across the UK, supporting high-value jobs, while stimulating the supply chain and SME opportunities,” added David Lockwood, Babcock chief executive.
