Fincantieri, Republikorp sign pact to support naval shipbuilding in Indonesia

Italian shipbuilder Fincantieri and Indonesian privately owned defense industrial holding company Republikorp have signed a memorandum of understanding (MoU) to establish a strategic partnership aimed at developing domestic naval shipbuilding capabilities in Indonesia.

The agreement, signed on the sidelines of the Eurosatory defense and security exhibition in Paris, includes plans to create a joint venture through PT Republik Palindo Internasional (RPAL), a subsidiary of Republikorp, the companies said in a statement.

The proposed joint venture is intended to support Indonesia's efforts to strengthen defense industry self-reliance through local construction of naval vessels and the transfer of shipbuilding technology and expertise.

Under the partnership, the companies plan to explore the local production of a range of naval platforms tailored to Indonesia's maritime requirements, including landing platform docks (LPDs), landing helicopter docks (LHDs), frigates, corvettes, offshore patrol vessels, fast attack craft and submarines.

The agreement also envisages cooperation in technology transfer, engineering, workforce training and the development of local suppliers to support the growth of Indonesia's shipbuilding industry.

Fincantieri said the initiative would help strengthen domestic capabilities in vessel design, systems integration and ship production, while supporting Indonesia's integration into the global shipbuilding value chain.

"Building on our established cooperation with the Indonesian Navy, this MoU marks a further step in strengthening a long-term strategic partnership between Fincantieri and Indonesia," Fincantieri Chief Executive Officer Pierroberto Folgiero said in the statement.

"By leveraging our expertise in high-complex naval shipbuilding and system integration, we are committed to supporting the development of local industrial capabilities and contributing to a more resilient maritime ecosystem," he added.

Norman Joesoef, Chairman and Founder of Republikorp Group, said the partnership is expected to support Indonesia's goal of developing a more self-reliant defense industry while strengthening international industrial cooperation.

"Together with Fincantieri, we see an opportunity to strengthen Indonesia's maritime capabilities, develop national talent and contribute to a more resilient regional defense ecosystem," he said.

Editing by Reiner Simanjuntak