Italian shipbuilder Fincantieri has entered into an agreement with Indonesian defence group Republikorp to establish a joint venture aimed at designing, constructing, marketing, and maintaining naval vessels for Indonesia’s Ministry of Defence.
The agreement was announced during the Euronaval exhibition in Paris and will be implemented through PT Republik Palindo Internasional (RPAL), a subsidiary of Republikorp. The proposed joint venture will focus on several naval programmes, including multirole surface combatants, submarines, and next-generation corvettes.
Strengthening Indonesia’s Domestic Shipbuilding Capabilities
The partnership will cover technical support, shipyard modernisation, workforce training, and the development of Indonesia’s domestic supplier network. Fincantieri will bring its expertise in naval architecture, shipbuilding, systems integration, and through-life support, while RPAL will contribute its local industrial infrastructure and understanding of Indonesia’s defence market.
Both companies intend to strengthen Indonesia’s indigenous capabilities in engineering, manufacturing, and maintenance, enabling a greater share of naval vessel production and support activities to be undertaken domestically. The joint venture may also explore opportunities to participate in selected naval programmes across other Southeast Asian markets.
Cooperation on Indonesian Aircraft Carrier Modernisation
The latest partnership builds on a separate cooperation framework signed in September between Fincantieri and PT PAL Indonesia, headquartered in Surabaya, to modernise the Indonesian Navy’s first aircraft carrier, KRI Sriwijaya.
Previously known as ITS Giuseppe Garibaldi, the former Italian Navy aircraft carrier arrived in Indonesia in September after completing its voyage from Europe under the escort of two Indonesian Navy Thaon di Revel-class offshore patrol vessels. Italy transferred the decommissioned carrier to Indonesia through a government grant arrangement agreed earlier this year.
However, Indonesia’s acquisition of the 41-year-old vessel has generated debate over the financial implications of operating and upgrading the carrier, as well as its long-term relevance to the country’s naval modernisation and defence strategy.
