Indonesia buying submarines from S. Korea on technology transfer terms

January 5, 2012 11:54 pm 

BATAM, Jan. 5 — Indonesia has signed a contract with a South Korean shipbuilding company on the purchase of three submarines with emphasis on technology transfer in the manufacturing process, Deputy Defense Minister Sjafrie Sjamsoedin said.

Under the contract, South Korea's Daewoo Shipbuidling and Marine Engineering (DSME) would build two of the submarines in Korea with the participation of Indonesian personnel in the manufacturing process and the third one in Indonesia in the dockyard of PT PAL in East Java, he said.

"The purpose of the US$ 1.80 billion scheme is also transfer of technology in the building of submarines," Sjafrie said.

Meanwhile, Maj Gen Ediwan Prabowo, head of the defense ministry's defense facilities agency, said the first submarine would be entirely built in South Korea with 30 personnel of PT PAL participating in the project as interns.

The PT PAL people would be assigned to master the designing phase of the submarine building project and participate in preparations to construct the second submarine.

Later, Indonesia would send up to 130 shipbuilding personnel to Korea to be involved in the process of making the second submarine.

"Eventually, we hope the third submarine can be wholly built at the dockyard of PT PAL in Indonesia so that local human resources can gain full submarine building competence," he said.

Ediwan said the government expected the first submarine to be completed in 2015, the second in 2016 and the third in 2017.

"With the acquisition of the three new submarines, the Indonesian Navy's combat and deterrent capability will be significantly enhanced," he said. (PNA/Antara)



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