Babcock signs strategic deal with Indonesia, boosting local maritime industry

Industry
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By: Bethany Alvaro

Babcock International has secured a £4 billion (approximately AU$7.9 million) Maritime Partnership Programme with Indonesia.

Babcock International has secured a £4 billion (approximately AU$7.9 million) Maritime Partnership Programme with Indonesia.

An agreement for the provision of two Arrowhead 140 frigate licences is set to be delivered in the coming months, being signed alongside a letter of intent (LOL) describing the procurement aims.

The LOL was signed between Babcock CEO David Lockwood and Indonesia President Prabowo Subianto, with the hopes to jointly develop capabilities in Indonesia’s navy and maritime industry which is critical for food and job security in the country.

 
 

President Subianto said the partnership is a “vital part of our maritime economic development”.

“We are pleased to proceed with the maritime partnership. I think this is very important and strategic for Indonesia.”

Lockwood said the Maritime Partnership Programme (MPP) “is focused on advancing Indonesia’s defence and maritime capabilities, infrastructure and supply chain, while creating jobs and prosperity for local communities”.

“As the lead industrial partner in this program, we are creating a strong and enduring alliance that will not only support Indonesia’s maritime goals but will sustain and grow jobs in both countries.

“This first work order, within this landmark framework, signals the importance of the pace and progress needed to deliver President Prabowo Subianto’s maritime transformation and underpins the growing success of our Arrowhead 140 export design.”

The announcement underpins a central growth seen across Babcock’s frigate exports, coming just weeks after the delivery of the first ship in the Merah Putih frigate class program being launched in Indonesia.

UK Prime Minister Keir Starmer said that “delivering for working people at home” is his main focus, with the MPP advancing the skills, opportunities and workforce of the UK community.

“Today’s next phase of our partnership with Indonesia is a powerful vote of confidence in the UK, securing hundreds of high‑skilled jobs right here in Rosyth [Scotland] and strengthening our world-class shipbuilding future.”

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