The United Kingdom and Indonesia have agreed to establish a Maritime Partnership Programme (MPP) under which Indonesia will build naval and fishing vessels with support from British shipbuilding specialists.
The announcement was made by the British Prime Minister following a call with Indonesia’s President. Worth £4 billion ($5.2 billion), the MPP will be spearheaded by defense contractor Babcock and forms part of the Strategic Partnership signed in November 2024.
The initiative covers technology sharing and co-development of modern shipbuilding capabilities, including automation and AI. Babcock will also expand training links between UK and Indonesian universities to build skills in precision engineering, digital vessel design, and integrated maritime systems.
Construction will occur in Indonesia, bolstering domestic shipbuilding capacity while sustaining jobs at Babcock’s Rosyth, Bristol, and Devonport sites.
Starmer said the agreement strengthens shared national security goals and underscores Indonesia’s importance as a close G20 partner.
The program supports the UK’s Blue Planet Fund, aimed at helping developing nations protect marine ecosystems and reduce poverty — aligning with Indonesia’s efforts to improve food security and safeguard biodiversity across its extensive archipelagic waters.
