Russia, S Korea to compete in Indonesia's tender for non-nuclear subs

26.10.2010 Russia and South Korea again were called the main potential importers of two diesel electrical submarines to Indonesian Navy, reports Jane's Defense Weekly referring to informed sources.

According to the sources, the "short" list of candidates includes Daewoo Shipbuilding and Marine Engineering (DSME) with Project 209 non-nuclear submarine and Admiralteyskie Verfi with Kilo class diesel electric sub.

Reportedly, Howaldtswerke-Deutsche Werft (Germany) with Project 209 submarine and DCNS (France) with Scorpene class sub dropped out of the tender.

The final decision can be made in 2011. Indonesian defense ministry is about to determine the supplier as soon as possible. As is planned, the first sub will be constructed by the tender winner. Building of the second one will be held under license by PT PAL Indonesia.

According to Indonesian top-ranking naval official, technical specifications for new submarines have been already determined.

Indonesia's currently implemented submarine procurement program is the second one in the recent years. The first tender was annulled in 2009 due to lack of financing; S Korean and Russian shipyards were also major candidates then.

Previously, Indonesia planned to appropriate about $700 mln for non-nuclear subs. Greater part of those funds is supposed to be covered by export credit.