Indonesia signs $1.3 billion deal with Italian shipbuilder Fincantieri for two multipurpose offshore patrol vessels

Italian shipbuilder Fincantieri signed a $1.3 billion (€1.18 billion) contract on March 28 to supply the Indonesian Navy with two 4,900-ton PPA ships.

The purchase, which has not been funded by the Indonesian government yet, involves the PPA multipurpose offshore patrol vessels which were originally destined for the Italian Navy. However, they will now be allocated to Indonesia.

The ships, each 143 meters long, are currently under construction and fitting at the integrated shipyard in Riva Trigoso-Muggiano.

The contract was signed by Pierroberto Folgiero, CEO and Managing Director of Fincantieri, and the Indonesian Ministry of Defense, in the presence of Dario Deste, General Manager of the Naval Vessels Division.

“This contract is a milestone for the development of a strategic partnership between our group and Indonesia,” Fincantieri CEO Folgiero said, adding this would be the “first of many significant collaborative opportunities” with Indonesia.

Italian shipbuilder Fincantieri and the Indonesian Ministry of Defense have signed a $1.3 billion contract
Italian shipbuilder Fincantieri and the Indonesian Ministry of Defense have signed a $1.3 billion contract to supply two PPA vessels. (Image Credit: Fincantieri)

It is important to note that under Indonesia’s procurement process, the signing of this contract does not yet constitute a final purchase agreement. The contract is still subject to the necessary authorizations from the competent authorities.

As part of the agreement, Fincantieri is the prime contractor responsible for coordinating with other industrial partners, including Leonardo, for the customization of the ships’ combat system and the provision of related logistic services.

This isn’t the first time Fincantieri has collaborated with Indonesia. In June 2021, the company announced that it had won another contract to supply Indonesia with six 6,600-ton FREMM-class frigates and two secondhand Maestrale-class frigates. Discussions for these ships are ongoing, but a financed deal for the FREMMs has not yet been finalized.

Key Features of the vessels

PPA is a highly flexible ship with an outstanding technological standard. It has the capacity to serve multiple functions, ranging from patrol with sea rescue capacity to civil protection operations.

The vessel is

  • 143 meters long overall
  • Has a speed of more than 32 knots according to vessel configuration and operational conditions
  • Can carry a crew of about 170 persons
  • Equipped with a combined diesel, a gas turbine plant (CODAG) and an electric propulsion system
  • Capacity to supply drinking water to land

Indonesian Navy’s interest in Fincantieri PPA vessels

The interest of the Indonesian Navy in Fincantieri’s PPA vessels can be traced back to the tour of the Italian Navy’s PPA vessel Francesco Morosini in Southeast Asia last year. The ship made stops in Malaysia, the Philippines, Singapore, Thailand, Vietnam, and Indonesia, generating interest and leading to discussions between Italy and Indonesia over the sale of the vessels.

Design of the PPA vessels

The PPA vessels ordered by the Italian Navy come in three configurations: light; light plus; and full. The light plus variant includes an anti-air warfare capability, while the full version also features the ability to prosecute anti-submarine missions.

The design of the vessels incorporates a naval cockpit, situated within a diamond-shaped bridge, to reduce the crew required on the bridge. So far, the Italian Navy has received three PPAs, and Fincantieri has launched a further three. The final two are expected to be commissioned in August 2025 and August 2026, respectively.

With the two offshore patrol vessels currently under construction in Italy, there will be limited opportunities for Indonesia’s state-owned shipbuilder PT PAL to participate in the program. However, PT PAL is currently building two 6,540-ton Iver Huitfeldt-class frigates for the Indonesian Navy under a $720 million contract signed in May 2021. These frigates are based on Babcock International’s Arrowhead 140 design.

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