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Tuesday, April 16, 2024

Fincantieri Scoops $1.27B Deal to Supply Two Patrol Vessels to Indonesia

Maritime Activity Reports, Inc.

March 28, 2024

(Credit: Fincantieri)

(Credit: Fincantieri)

Fincantieri and the Indonesian Ministry of Defense have signed a contract for the supply of two Multipurpose Offshore Patrol Vessel (PPA) units.

The $1.27 billion (€1.18 billion) deal is part of the framework of collaborative relations initiated by the Italian Ministry of Defense.

A PPA is a highly flexible ship with an outstanding technological standard. It has the capacity to serve multiple functions, ranging from patrol with sea rescue capacity to Civil Protection operations and first line fighting vessel.

The vessels to be supplied by Fincantieri will be 143 meters long overall, capable of reaching speeds of more than 32 knots according to vessel configuration and operational conditions.

The PPAs will be able to accommodate crew of about 170 persons, and will be equipped with a combined diesel, a gas turbine plant (CODAG) and an electric propulsion system

The contract was signed by Pierroberto Folgiero, CEO and Managing Director of Fincantieri, and by the Indonesian Ministry of Defense, in the presence of Dario Deste, General Manager of the Naval Vessels Division.

The ships subject to the order - originally destined for the Italian Navy - are currently under construction and fitting at the Integrated Shipyard in Riva Trigoso-Muggiano.

The Units will be able to support Indonesia in protecting national interests and contribute to the stability of the delicate Indo-Pacific strategic quadrant.

As part of the transaction, Fincantieri will act as the prime contractor towards the Indonesian Ministry of Defense and will specifically coordinate the other industrial partners, including Leonardo, for the customization of the ships' combat system and the provision of related logistic services.

The parties will define the relevant agreements in compliance with the applicable legislation, including that relating to transactions between related parties.

The effectiveness of the contract is subject to the necessary authorizations from the competent authorities.

“We view this as the first of many significant collaborative opportunities with the Indonesian Ministry of Defense, following a long-term partnership approach thanks to the structural support of our institutions, starting with the Ministry of Defense and the Italian Navy.

“Southeast Asia is a region of central geopolitical importance where Fincantieri aims to strengthen its presence, as defined in the Business Plan,” said Pierroberto Folgiero, CEO and Managing Director of Fincantieri.

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