South Korea Expects to Sell 3 Conventional Subs to Indonesia in Nov

11.10.2011 Daewoo Shipbuilding & Marine Engineering (DSME) intends to sign a $1.1-bln contract for three Project 209 non-nuclear submarines for Indonesian Navy in Nov.

According to Reuters referring to DSME, negotiations on the contract with Indonesian defense ministry has been already started.

Indonesian officials do not comment information emerged in media. Once being signed, this contract would become the first agreement dealing with export of South Korean non-nuclear submarines.

DSME builds Project 209 conventional submarines under license purchased early in 90's from Germany.

Indonesian Navy currently operates two Project 209/1300 Cakra submarines built by German company Howaldtswerke-Deutsche Werft. Those non-nuclear subs were upgraded by Daewoo Shipbuilding.

In 2009, Indonesian defense ministry sent invitations to participate in tender for conventional subs to French, German, Russian, and Korean companies, but the program was abolished due to lack of financing. The tender decision was postponed for 2011.

As was initially reported, Russia and South Korea were regarded as leaders, although final competition broke out between two companies building German-designed Project 209 subs under license. In the Indonesian tender, Daewoo Shipbuilding competes with consortium of Turkish and German companies also offering Project 209 subs.