The United Kingdom and Indonesia have established a new Maritime Partnership Programme (MPP) valued at approximately £4 billion, a move set to secure 1,000 jobs within the UK defence and shipbuilding industry.
The landmark agreement, led by British prime contractor Babcock, will focus on the joint development of maritime capabilities for the Indonesian Navy alongside the construction of over 1,000 vessels for the nation’s fishing fleets. This long-term programme underscores the UK’s strategic commitment to the Indo-Pacific region and presents significant, sustained opportunities for the British defence supply chain.
The partnership was formally announced by Prime Minister Keir Starmer and Indonesian President Prabowo Subianto during the G20 Summit. Under the terms of the agreement, the new vessels will be constructed in Indonesia, leveraging British design and shipbuilding expertise. This model of technology transfer and industrial partnership is expected to directly support 1,000 UK jobs, with the majority located at Babcock’s Rosyth shipyard. Additional roles will be secured at the company’s facilities in Bristol and its Devonport dockyard, creating a demand for specialist skills and components from across the UK supply chain. For Indonesia, the programme is designed to revitalise local shipbuilding, enhance defence and maritime security, and improve national food security.
From a strategic perspective, the MPP strengthens the existing maritime cooperation between the two nations, paving the way for greater naval interoperability and joint training exercises. It reinforces a shared commitment to stability, freedom of navigation, and a rules-based international order in the Indo-Pacific. The programme also includes a significant technology and skills development component, with plans for joint research into next-generation shipbuilding practices, including automation and Artificial Intelligence. Babcock will facilitate collaboration between UK and Indonesian educational institutions to foster skills in precision engineering, digital ship design, and integrated naval systems, ensuring long-term benefits for both industrial bases.
This agreement is the latest in a series of major international defence contracts secured by the UK. It follows a £10 billion contract with Norway for next-generation anti-submarine warfare destroyers and an £8 billion deal with Türkiye for the export of 20 Typhoon fighter jets. For UK-based suppliers, the Indonesian MPP represents a substantial opportunity to engage with a major international programme, providing a clear pipeline for high-value manufacturing, engineering services, and technology innovation over the coming years.
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Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
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