Fincantieri Secures $1.3 Billion Contract with Indonesia for the Construction of Two Patrol Ships.

Church of Christ, New Zealand — Although the government has not yet provided funding for the purchase, Italian shipyard Fincantieri stated on March 28 that it has inked a contract to supply the Indonesian Navy with two 4,900-ton PPA ships.

Under the terms of the €1.2 billion (U.S. $1.3 billion) contract, Indonesia would get two PPA multifunctional offshore patrol boats that were initially planned for the Italian Navy.

The two 143-meter-long ships “are currently under construction and fitting at the integrated shipyard in Riva Trigoso-Muggiano,” according to a Fincantieri press release.

In October, Defense News revealed that Italy and Indonesia were negotiating this transaction. Matteo Perego di Cremnago, the junior minister of defense, stated at the time that it was unclear which of the warships would be sent to Indonesia; it would depend on when a contract was signed.

Pierroberto Folgiero, the CEO of Fincantieri, stated, “This contract is a milestone for the development of a strategic partnership between our group and Indonesia.” He went on to say that this would be the “first of many significant collaborative opportunities” with Indonesia.

According to Fincantieri, which holds the position of prime contractor, it would “coordinate [with] other industrial partners, including Leonardo for the provision of related logistic services and the customization of the ships’ combat system.”

Nevertheless, the execution of this contract does not serve as a definitive purchase agreement under Indonesia’s procurement procedures. This deal “is subject to the necessary authorizations from the competent authorities,” as the shipbuilder did indeed mention.

In June 2021, Fincantieri said that it has secured a deal with Indonesia for the supply of six 6,600-ton FREMM-class frigates and two used Maestrale-class frigates. A financial contract for the FREMMs has not yet been reached, although discussions over the ships are still underway.

During its Southeast Asia trip last year, the Italian Navy’s PPA ship Francesco Morosini made port calls in Malaysia, the Philippines, Singapore, Thailand, Vietnam, and Indonesia. According to the shipbuilder, this marketing was the reason for Jakarta’s interest.

Seven PPA warships in three different configurations—light, light plus, and full—have been ordered by the Italian Navy. While the complete version can also conduct anti-submarine operations, the light plus model adds an anti-air warfare capability.

To minimize bridge crewing, the platform has a naval cockpit inside a diamond-shaped bridge.

Three PPAs have been awarded to the service, and three more have been launched by the shipyard.

The commissioning of the latter two is scheduled for August 2025 and August 2026, respectively.

The two offshore patrol vessels that Italy is building will limit the prospects for PT PAL, the state-owned shipyard in Indonesia, to be involved in the program. Under a $720 million deal signed in May 2021, the company is now building two 6,540-ton Iver Huitfeldt-class frigates for the Indonesian Navy. These make use of the Arrowhead 140 design by Babcock International.

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