The UK and Indonesia have agreed a landmark £4 billion ($5.2 billion) maritime partnership, securing 1,000 jobs in the UK and strengthening bilateral defence and commercial ties.
Set to be announced by Prime Minister Keir Starmer during a call to President Prabowo Subianto from the G20 Summit, the Maritime Partnership Programme (MPP), led by British defence firm Babcock, will see the two nations jointly develop maritime capabilities for Indonesia’s navy and more than 1,000 vessels for its fishing fleets.
The initiative aims to boost seafood production, enhance food security, and support sustainable marine industries.
The vessels will be built in Indonesia with British expertise, safeguarding 1,000 jobs in the UK. Most roles will be at Babcock’s Rosyth shipyard, with additional positions at Bristol and Devonport.
In Indonesia, the programme will revitalise shipbuilding, strengthen maritime security, and support local coastal communities, while advancing responsible fishing practices and preserving marine biodiversity.
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Prime Minister Starmer said the deal demonstrates “how our strong international partnerships are delivering real benefit for people at home in jobs, opportunity and growth,” reinforcing shared commitments to global stability and national security.
The partnership builds on existing UK-Indonesia maritime cooperation, including visits by the UK Carrier Strike Group to Jakarta and earlier deployments of HMS Spey.
It will enhance interoperability, joint training, and technology transfer between the two navies, including next-generation shipbuilding practices using automation and artificial intelligence (AI).
Babcock Chief Executive David Lockwood said the MPP represents “a major investment and commitment, building on the strong foundations between nations while driving economic growth for both countries,” adding that the programme will stimulate supply chains and SME opportunities across the UK.
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The vessels will also be deployed sustainably under the UK’s Blue Planet Fund, supporting initiatives such as dynamic fish-stock assessment, fisheries management, marine conservation, and community-led coastal resilience projects.
The deal follows other recent UK defence and maritime exports, including a £10 billion ($13 billion) contract with Norway for anti-submarine warfare destroyers, supporting 4,000 UK jobs, and an £8 billion ($10 billion) deal with Türkiye for 20 Typhoon fighter jets, securing a further 20,000 jobs.
President Prabowo said the collaboration will “mutually drive our economies, create high-quality jobs, and advance Indonesia’s shipbuilding and defence capabilities,” while providing economic opportunities for local fishermen and coastal communities.
The programme forms a key part of the broader strategic partnership committed to by both nations in November 2024.
For more information:
Gov.UK – https://www.gov.uk/
