Italian shipbuilder Fincantieri has signed an agreement with Indonesian defence group Republikorp to establish a joint venture focused on designing, constructing, marketing and maintaining naval vessels for Indonesia’s Ministry of Defence. Announced during the Euronaval exhibition in Paris, the partnership will operate through PT Republik Palindo Internasional (RPAL), a subsidiary of Republikorp. The proposed venture will pursue programmes involving multirole surface combatants, submarines and next-generation corvettes. The agreement also covers technical assistance, shipyard modernisation, workforce training and the development of Indonesia’s domestic supplier network. Fincantieri will contribute its expertise in naval design, shipbuilding, systems integration and life-cycle support, while RPAL will provide local industrial capabilities and knowledge of Indonesia’s defence sector. The companies aim to expand domestic engineering, manufacturing and maintenance capacity, enabling a greater share of naval vessel work to be performed within Indonesia. The partnership could also explore selected naval projects in other Southeast Asian markets. The agreement follows a separate cooperation framework signed in September between Fincantieri and PT PAL Indonesia to modernise the Indonesian Navy’s first aircraft carrier, KRI Sriwijaya. Formerly operated by the Italian Navy as ITS Giuseppe Garibaldi, the 41-year-old vessel arrived in Indonesia in September after travelling from Europe under escort by two Indonesian Navy Thaon di Revel-class offshore patrol vessels. Italy transferred the retired carrier to Indonesia through a government grant agreed earlier this year. The acquisition has generated debate over the financial burden of operating and upgrading the ageing vessel, as well as its long-term value to Indonesia’s defence strategy.
