£4bn Maritime Deal with Indonesia Set to Boost British Jobs and Support Indo-Pacific Security

23 November 2025

Babcock has started its project in Indonesia with Arrowhead 140 frigates for the Indonesian Navy built by PT PAL(image: Babcock International)

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 tomorrow [SATURDAY], 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 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.

Prime Minister Keir Starmer said:

“This deal with Indonesia is the latest example of how our strong international partnerships are delivering real benefit for people at home in jobs, opportunity and growth.

“And as one of our closest G20 partners, it reinforces our joint commitment to global stability and bolsters our shared national security.”

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.

Babcock chief executive David Lockwood said:

“The Maritime Partnership Programme between Indonesia and the UK is a major investment and commitment, building on the strong foundations between nations while driving economic growth for both countries.

“Babcock is proud to be leading the UK’s industrial support for this international programme which will advance critical Indonesian naval and maritime programmes.  We will also generate positive economic impact across the UK, supporting high-value jobs, while stimulating the supply chain and SME opportunities.”

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. It follows the UK winning a £10bn contract with Norway to build the nation’s next generation anti-submarine warfare destroyers, supporting 4000 UK jobs, and an £8bn deal with NATO-ally Türkiye for the export of 20 Typhoon fighter jets, securing a further 20,000 jobs.

President Prabowo Subianto said:

“Through our historic partnership, we will develop and build our vessels domestically, supported by the expertise, experience and technology from the United Kingdom.

“The programme marks a new phase in the Indonesia-UK bilateral relationship. This collaboration will mutually drive our economies, create high-quality jobs, and more importantly, advance Indonesia’s shipbuilding and defence capabilities.

“Crucially, it will also empower our local fishermen and coastal communities by presenting significant new economic opportunities.”

This programme forms an integral part of the broader strategic partnership that the Prime Minster and President Prabowo committed to in November last year.

(UK Govt)