Fincantieri, contract with Defence Indonesia for 2 ships worth 1.18 billion

Fincantieri has signed a €1.18 billion contract to supply two patrol vessels (Ppa) to the Indonesian Ministry of Defence. The order was signed by the shipbuilding group's number one, Pierroberto Folgiero, and the Indonesian Ministry of Defence in the presence of the general manager of the Italian company's Military Ships Division, Dario Deste. The Ppa (an acronym that identifies a multi-purpose offshore patrol vessel) is a highly flexible vessel capable of performing multiple tasks ranging from patrols with sea rescue capabilities to civil defence operations, but can also act as a first-line combatant ship.

"This contract is a milestone in the development of the strategic partnership between our group and Indonesia. We see it as the first of other important collaboration opportunities with the Indonesian Ministry of Defence, in a logic of long-term partnership thanks to the structural support of our institutions, starting with the Ministry of Defence and the Italian Navy. Southeast Asia is a central area from a geopolitical point of view where Fincantieri wants to strengthen its presence, as defined in the industrial plan," commented Fincantieri CEO Folgiero.

The ordered ships, originally intended for the Italian Navy, are currently under construction and outfitting at the Integrated Shipyard in Riva Trigoso and Muggiano. The Indonesian Defence Ministry's interest in the Ppa units stems from the Far East naval campaign of the Francesco Morosini, the second ship of the Italian Navy's Ppa class, which also stopped over in Indonesia in July 2023. The operation can trigger further operational, industrial and technological synergies between the two countries. The units will be able to support Indonesia in protecting national interests and contribute to the stability of the sensitive Indo-Pacific strategic quadrant.

Within the scope of the transaction, Fincantieri will act as prime contractor vis-à-vis the Indonesian Ministry of Defence and will co-ordinate with the other industrial partners, including Leonardo, for the upgrades of the ships' combat system and the provision of related logistics services. The relevant agreements will be defined in compliance with applicable regulations, including those concerning transactions between related parties. As is always the case with this type of contract, effectiveness is subject to the authorising approvals of the relevant institutions.