Indonesia has successfully secured a substantial $1.25 billion loan from BNP Paribas, with significant contributions from Credit Agricole and additional support from the Italian financial institution SACE. This financing will fund the acquisition of two multi-role offshore patrol vessels (Pattugliatore Polivalente d’Altura, or PPA), known as the Thaon di Revel class, from the renowned Italian shipbuilder Fincantieri. The loan agreement, expected to be finalized by Indonesia’s Ministry of Finance before the end of 2024, marks a significant strategic development in Indonesia’s naval defense capabilities, affirming Indonesia’s commitment to strengthening its maritime security and regional defense posture.
The two vessels will be named KRI Brawijaya (pennant number 320) and KRI Prabu Siliwangi (pennant number 321) upon delivery to the Indonesian Navy. This acquisition is part of Indonesia’s broader defense modernization program, which seeks to equip the country with state-of-the-art maritime assets capable of performing a range of functions, from traditional defense roles to humanitarian missions.
Indonesia’s decision to acquire the Thaon di Revel-class PPA vessels aligns with its increasing emphasis on versatile, technologically advanced maritime assets. Originally designed for the Italian Navy, the PPA-class patrol vessels are among the most sophisticated multi-role vessels available. Each vessel features a displacement between 5,800 and 6,300 tons and a length of approximately 143 meters. Powered to reach speeds of up to 32 knots, the ships are well-suited for both high-speed interceptions and long-duration patrol missions, ensuring a broad operational spectrum.
- Displacement: Between 5,800 to 6,300 tons.
- Top Speed: Up to 32 knots.
- Armament: Equipped with Teseo/Otomat Mk-2/E anti-ship missiles, CAMM-ER or SCALP ER air defense missiles.
- Aircraft Capability: Accommodates an SH90 helicopter.
- Crew Capacity: Can carry up to 170 personnel, facilitating extended operational range and endurance.
The Thaon di Revel class’s flexible design allows the vessels to perform multiple missions, from border patrols and search-and-rescue (SAR) operations to anti-piracy missions and civil defense operations. This versatility is especially relevant to Indonesia’s geographical context, where over 17,000 islands and extensive maritime borders pose a unique set of challenges for national security and disaster response.
Indonesia’s acquisition of these vessels comes at a time of heightened focus on Indo-Pacific security, where issues such as territorial sovereignty, maritime rights, and illegal fishing frequently surface as strategic concerns. The Ministry of Defense has emphasized the importance of bolstering its naval assets as part of its Minimum Essential Force (MEF) modernization strategy, which seeks to elevate Indonesia’s military capabilities to meet minimum defensive requirements by 2024.
The new vessels, designed with cutting-edge modular systems, will enhance Indonesia’s capability to address asymmetric threats, improve patrol efficiency in the nation’s exclusive economic zones (EEZ), and project a stronger presence in the South China Sea and surrounding waters. The ships’ high-speed, armament, and flexible mission profile will enable the Indonesian Navy to respond more effectively to various regional security threats, thereby reinforcing Indonesia’s status as a key maritime player in Southeast Asia.
The Indo-Pacific region has grown increasingly significant for European nations, particularly Italy, which has been expanding its diplomatic and defense cooperation in the area. The Italian Navy’s eastern deployment of the second PPA vessel, Francesco Morosini, in 2023 included a visit to Indonesia, which reportedly ignited Indonesia’s interest in the PPA-class patrol vessels. During this deployment, Francesco Morosini also participated in the Langkawi International Maritime and Aerospace Exhibition (LIMA) in Malaysia, marking Italy’s commitment to a cooperative security approach in the region.
Fincantieri, Italy’s largest shipbuilding company, has welcomed Indonesia’s acquisition as a catalyst for increased bilateral collaboration in both defense and industrial sectors. The Italian shipbuilder, which has been a leader in naval innovation, expressed its support for Indonesia’s aspirations to safeguard its interests and contribute to Indo-Pacific stability. “These PPA-class patrol vessels will support Indonesia’s efforts to safeguard its interests and contribute to stability in the Indo-Pacific region,” Fincantieri said in a statement.
The Thaon di Revel-class PPA vessels being acquired by Indonesia were initially intended for the Italian Navy and are presently under construction at Fincantieri’s Integrated Shipyard in Riva Trigoso-Muggiano, Italy. The Italian Navy, which currently operates three PPA vessels commissioned between March 2022 and September 2023, aims to complete a fleet of six such vessels by 2026. The PPA-class patrol vessels are a central component of the Italian Navy’s modernization program, with the first vessel launched in 2017 as part of a broader effort to equip the Italian Navy with multi-mission, high-endurance vessels capable of meeting modern maritime challenges.
The financing of $1.25 billion for the PPA acquisition underscores Indonesia’s strategic priority of strengthening its defense infrastructure. BNP Paribas led the loan arrangement, with support from Credit Agricole and Italian export credit agency SACE, highlighting the substantial interest and commitment of European financial institutions in supporting Indonesia’s defense modernization efforts.
This loan arrangement represents not only an investment in military assets but also in economic ties between Indonesia and Europe, fostering mutual benefit in technology transfer, industrial synergy, and skill development. In the long term, such defense deals could pave the way for further industrial cooperation, with Indonesia benefiting from Italian expertise in naval shipbuilding and possibly integrating Italian technologies in other sectors of its defense industry.
The acquisition of the PPA vessels is expected to contribute positively to the regional balance of power, reinforcing Indonesia’s naval capabilities at a time when geopolitical tensions in the Indo-Pacific are intensifying. With Indonesia’s geographic position straddling the vital shipping routes between the Indian and Pacific Oceans, the country plays a crucial role in maintaining the security and stability of these waters, which are frequented by global trade and military assets alike.
The presence of advanced multi-role vessels like the PPA-class could serve as a deterrent to illegal fishing, piracy, and incursions by foreign military forces into Indonesian waters, particularly in contentious areas such as the North Natuna Sea. Additionally, as Indonesia seeks to modernize its armed forces, the PPA vessels’ advanced surveillance and combat systems will likely improve the Navy’s situational awareness, allowing for a rapid and effective response to maritime incidents.
Moreover, Indonesia’s acquisition of such high-capability vessels could prompt further collaboration among Southeast Asian nations seeking to address common security threats. By setting a benchmark in maritime security, Indonesia could inspire neighboring countries to similarly enhance their naval forces, potentially opening avenues for coordinated patrols, shared intelligence, and joint military exercises aimed at safeguarding regional security.
