Naval Technology

Daily Newsletter

14 November 2023

Daily Newsletter

Indonesia’s strategic submarine collaboration takes depth with Naval Group

Deputy minister M. Herindra explores expansive partnership horizons with Naval Group CEO Pierre Eric Pommellet for strengthening Indonesia's defence and economy.

In a meeting at the heart of Jakarta, Deputy Minister of defence M. Herindra hosted Naval Group CEO Pierre Eric Pommellet to delve into submarine procurement discussions that transcend traditional defence talks.

The agenda, centring around submarine procurement, unfolded as a strategic endeavour to acquire vessels, reinvigorate Indonesia's national defence industry and uplift its economic landscape.

Deputy minister M. Herindra and Naval Group CEO Pierre Eric Pommellet convened to chart a course beyond routine defence collaboration. Amidst the diplomatic ambience, the duo delved into the intricate details of submarine procurement, emphasizing a joint commitment to align with the expectations set forth by both the Indonesian and French governments.

The Indonesian Navy is likely to invest in the acquisition of a new-generation submarine, according to GlobalData's "Indonesia Defense Market 2023-2028" report.

Accompanying the deputy minister of defence in this high-profile engagement were notable figures, including the head of the ministry of Defence's Baranahan Head, Dirkersinhan, and the directorate general of defence. Together, they navigated through discussions not only on the acquisition of submarines but also on the matter of financing submarine construction.

The focus shifted towards a holistic vision – Indonesia's national defence industry revival. Deputy Minister Herindra, in alignment with PT. PAL underscored the nation's determination to foster a self-sustaining defence sector. This vision, they believe, holds the key to bolstering national security and, uplifting the livelihoods of thousands employed in the defence industry and contributing to the broader national economy.

According to GlobalData's information on the Indonesian defence market, Naval Group have proposed to work on the Scorpene-class submarine with PT Pal Indonesia, and the procurement of Naval Group's Gowind-class Corvette has been planned.

The collaboration between Deputy Minister M. Herindra and Naval Group CEO Pierre Eric Pommellet signifies a shift in defence discussions. It signals a commitment to acquiring assets but fostering growth within Indonesia's defence industrial landscape.

Space economy - A universe of relentless competition

Per GlobalData estimates, the space industry was worth $450 billion in 2022 and is expected to expand at a CAGR of somewhere between 6% and 10% by 2030. Investor interest, evident gaps in the market, and advancements in space technologies have led to a surge in start-ups entering the space economy in the last five years. The unforgiving environment of space exploration is matched by the harsh financial reality of developing space technologies, which has made acquisitions of complementary companies, strategic suppliers, and partners more likely.