This collaboration between the Indonesian Ministry of Defence, PT PAL, and Naval Group will result in the creation of thousands of long-term skilled jobs. Indonesian personnel will lead the management of the submarine fleet, supported by expertise gained through intensive technology transfer.
Preparatory steps, including design work, procurement of long lead items and planning, have been underway since the initial signing of the agreement. In the coming weeks, PT PAL welders will undergo job-specific training in France, while around 50 Naval Group experts will train more than 400 Indonesian engineers on-site.
As part of the broader strategic partnership, several Memorandums of Understanding (MoUs) were signed on 12 June 2025 between Naval Group and Indonesian defence industries. A separate MoU was also signed with Indonesia’s National Research and Innovation Agency (BRIN) to support future collaborative R&D in defence marine technologies.
On 1 July 2025, the establishment of the subsidiary PT Naval Group Nusantara further demonstrated Naval Group’s long-term commitment to supporting Indonesia’s defence ambitions. This initiative underlines the shared goal of fostering a resilient and independent naval industrial base in Indonesia.
“The implementation of this contract is a significant milestone in the strategic alliance between Indonesia and France, which we are honoured to be a part of,” said Pierre Eric Pommellet, Chairman and CEO of Naval Group. “Together with our strategic partner PT PAL, we will to support Indonesia in its ambition to build a modern, sovereign, and resilient Indonesian naval industry for the benefit of the Indonesian Navy.”
“This step is a high commitment and trust of the Indonesian government in the capability of local engineers to advancing defence technology, especially submarine technology,” said Dr Kaharuddin Djenod, President Director of PT PAL. “The government’s commitment in realizing the independence of the defence industry is also supported by the provision of Government Capital (PMN) to fully support the whole local production of submarine at PT PAL. In the future, Indonesia is expected to be able to master submarine technology.”
PT PAL Indonesia is the country’s largest shipbuilding company with capabilities spanning warship and commercial ship construction and design, submarine MRO services, general engineering for energy products, and advanced maritime technology development.
