Indonesia to buy 8 Italian frigates and hike defence spending as China tensions rise

Jakarta is planning a massive boost in defence spending, with a leaked document suggesting a budget of US$124 billion over five years – three times the previous level

Need to modernise fleet has been highlighted by sinking of the submarine KRI Nanggala and increasing Chinese activity near the Natuna Islands, experts say

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A French FREMM frigate. According to the website of Italian shipbuilder Fincantieri, Indonesia has signed a contract to purchase six new FREMM multipurpose frigates and two used Maestrale-class frigates. Photo: AFP

Published: 6:31pm, 15 Jun 2021Updated: 9:00pm, 15 Jun 2021

Nearly two months after one of its submarines sank off the coast of Bali during a training exercise, Indonesia has begun to modernise its defence forces by ordering eight frigates from Italy.

Analysts say the deal highlights the Southeast Asian nation’s concerns over violations of its territory by Chinese vessels and its ability to defend its interests with its current fleet of ageing vessels.

According to a leaked document, the Indonesian defence ministry will propose a budget of US$124 billion, which will be split over five years, representing a massive increase in defence spending for Indonesia. Over the previous five years it spent around US$38.8 billion.

News of the deal comes as defence ministers of the Asean (Association of Southeast Asian Nations) bloc took part in virtual talks on Tuesday and conducted an Asean-China meeting, where a code of conduct for the South China Sea may have been discussed, though no details were provided by the Asean chair Brunei in a statement at the end of the meeting. The Asean countries will meet with eight dialogue partners – Australia, China, India, Japan, New Zealand, South Korea, Russia and the United States – on Wednesday for talks in which regional security and Chinese assertiveness in the region are likely to feature high on the agenda.

According to the website of Italian shipbuilder Fincantieri, Indonesia has signed a contract to purchase six new FREMM multipurpose frigates and two used Maestrale-class frigates. The two Maestrale-class frigates will be available after they are retired by the Italian Navy.

An Indonesian Navy ship leaves for the search and rescue operation following the sinking of submarine KRI Nanggala in East Java. Photo: Xinhua

The company said the deal was “of the utmost importance” to strengthen the collaboration between two countries in the “strategic area of the Pacific”. It did not disclose the value of the contract.

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