Indonesia begins contract negotiations for two Scorpene Evolved submarines

An Indian Navy Scorpene submarine. Indonesia has begun negotiations to procure the Scorpene Evolved variant of the boat, which will be equipped with lithium ion batteries. (Naval Group)

Representatives from French shipbuilder Naval Group have arrived in Jakarta to begin contract negotiations for two lithium ion batteries-equipped Scorpene Evolved diesel-electric submarines (SSKs).

Separate sources have confirmed to
Janes
that negotiations for the possible contract began at the Indonesian Ministry of Defense’s (MoD’s) office on Jalan Medan Merdeka Barat on 26 February. A major point of the discussions included how the programme would be financed should a contract materialise.

As part of its offer, Naval Group has partnered with the French government’s Directorate General of the Treasury to fully fund the programme via three sources of loans,
Janes
has been informed.

These include a credit facility with France’s Banque publique d’investissement and a direct loan from the Directorate General of the Treasury, which would fund up to 85% of Naval Group’s portion of the contract.