The UK and Indonesia have agreed a landmark £4 billion maritime deal securing 1000 jobs in the UK in the latest boost for the British industry.
Set to be announced by Prime Minister Keir Starmer during a call to President Prabowo Subianto from the G20 Summit on Nov 22, the new Maritime Partnership Programme (MPP) led by British defence firm Babcock, will see the UK and Indonesia jointly develop maritime capability for Indonesia’s navy and more than 1,000 vessels for its fishing fleets to boost seafood consumption and in turn, food security, the UK government website said.
The boats will be built in Indonesia using British shipbuilding expertise, which will support 1000 jobs at home in the UK. The majority of jobs are expected to be secured at Babcock’s Rosyth shipyard, with further roles at the company’s Bristol site and Devonport dockyard.
In Indonesia, the programme will unlock major investment in local shipbuilding, revitalise fishing communities, enhance Indonesia’s defence and maritime security, and boost food security – one of President Prabowo’s top priorities. It will deliver on Indonesia’s ambition to grow food production responsibly while safeguarding its unparalleled marine biodiversity.
The new partnership with Indonesia builds on the strong existing maritime cooperation links between both countries, including recent visits to Jakarta by the UK Carrier Strike Group over the summer and HMS Spey earlier in the year. It will also pave the way for greater interoperability and joint training between both navies.
The deal underlines the UK and Indonesia’s shared commitment to stability and prosperity in the Indo-Pacific, upholding freedom of navigation and supporting a rules-based international order.
It will bring benefits to future generations in both countries, with the partnership driving technology transfer and joint research into next generation shipbuilding practices, including through automation and Artificial Intelligence.
Babcock will also look boost collaboration between UK and Indonesian educational institutions to share skills in precision engineering, digital ship design, and integrated naval systems, ensuring long-term benefits for both economies and workforces.
Supported by the UK’s Blue Planet Fund, which supports developing countries to protect the marine environment and reduce poverty, the future vessels will be deployed in an economically, environmentally, and socially sustainable way. This includes projects on dynamic fish-stock assessment, fisheries management, marine conservation, and community-led coastal resilience initiatives.
The deal is the latest agreement struck with international partners to export defence and maritime capability.
