Indonesia Begins Construction Of Two 2,000-Ton Advanced Scorpène Submarines Under $2.1 Billion Deal
Our take
The commencement of construction on two advanced Scorpène submarines by Indonesia, facilitated by a $2.1 billion agreement with Naval Group and state-owned shipbuilder PT PAL, represents a significant development in Southeast Asian naval capabilities and underscores a broader trend toward regional maritime modernization. This technology transfer agreement, beyond simply acquiring vessels, fosters domestic shipbuilding expertise, a crucial element for long-term strategic autonomy. The investment signals Indonesia’s intent to bolster its maritime security posture, particularly within the context of increasingly complex geopolitical dynamics in the South China Sea and surrounding waters. Understanding these shifts requires a deeper look at the oceanographic and environmental factors influencing naval operations, as highlighted in research concerning the Spatiotemporal characteristics of the theoretical wave-base-derived seaward shoreface boundary along the China Coast. Accurate modeling of these conditions is vital for submarine navigation and operational effectiveness.
This project’s implications extend beyond Indonesia’s immediate security concerns. The acquisition and integration of advanced submarine technology invariably impact the regional power balance, prompting responses from neighboring nations. Furthermore, the construction process itself provides opportunities for Indonesian engineers and technicians, contributing to the nation’s industrial base. The Indonesian archipelago’s intricate coastal environment, particularly the challenges of mapping and understanding its seabed, are also relevant here, as demonstrated by recent work on Seafloor morphology and sedimentology in the Brazilian semi-arid continental shelf: a high-resolution geophysical baseline from the Ceará Basin. While the Brazilian context differs, the need for detailed bathymetric and geological data for safe and effective submarine operations is universally applicable. The presence of microplastics in Indonesian coastal waters, a growing concern, adds another layer of complexity to the operational environment, as addressed in Bridging the gap for advancing microplastic research and monitoring in the Indonesian marine and coastal environments. While not directly impacting submarine mechanics, these environmental factors contribute to the broader understanding of the operational theater.
The Scorpène submarines, known for their advanced stealth capabilities and modular design, represent a considerable upgrade to Indonesia’s existing submarine fleet. The technology transfer component is particularly noteworthy; it allows PT PAL to build these submarines domestically, reducing reliance on foreign suppliers and fostering a sustainable shipbuilding industry. This aligns with a broader, global trend of nations seeking to enhance their indigenous defense capabilities. The success of this program will depend on rigorous quality control, effective training of Indonesian personnel, and the seamless integration of the submarines into the existing naval infrastructure. The long-term impact will not only be felt through strengthened maritime security but also through the development of a skilled workforce and the potential for export of shipbuilding expertise.
Looking forward, the integration of these submarines into Indonesia's naval strategy warrants close observation. Specifically, how will these assets be utilized in the context of resource management, maritime domain awareness, and regional security partnerships? The rise of autonomous underwater vehicles (AUVs) and their potential integration with submarine operations also presents an intriguing prospect. The calibrated deployment of these advanced assets, coupled with ongoing research into oceanographic conditions and environmental hazards, will ultimately determine the effectiveness of Indonesia's maritime security strategy and its influence within the broader Indo-Pacific region. A critical question will be whether this investment contributes to a stable regional order or triggers a further arms race among Southeast Asian nations.
Indonesia has started building two Scorpène Evolved submarines in partnership with French defence company Naval Group, marking the country’s first domestic construction of the advanced conventional submarines.
The submarines are being built by state-owned shipbuilder PT PAL under a technology transfer agreement with Naval Group.
The programme is intended to strengthen Indonesia’s submarine fleet while helping the country develop its own submarine-building capabilities.
The contract, worth between $2.1 billion and $2.16 billion, was signed in March 2024 and came into force on July 23, 2025. It is also the first export order for the lithium-ion battery version of the Scorpène submarine.
Indonesia sees the project as part of its long-term plan to become self-reliant in submarine construction. The country aims to develop the capability to design, build and eventually export its own submarines between 2042 and 2050.
The Scorpène Evolved is designed to carry out missions against both surface ships and submarines, while also supporting intelligence-gathering operations. It features a new propulsion system, full lithium-ion batteries and Naval Group’s SUBTICS combat management system.
With its lithium-ion battery configuration, the submarine is designed to stay on missions for up to 80 days. It can carry up to 18 heavyweight torpedoes and SM39 Exocet anti-ship missiles.
Naval Group has also confirmed that it will be able to launch the next-generation SM40 submarine-launched Exocet missile, which is currently being developed by MBDA.
The submarine is also equipped with a Platform Management System (PMS), which controls and monitors key onboard systems, including propulsion, energy generation, diving safety and auxiliary equipment.
The system collects information from programmable logic controllers located throughout the vessel and manages the submarine’s operations.
According to Naval Group, the Indonesian submarines will be built using the same specialised steel used in French attack submarines. The material requires strict welding standards and multiple quality inspections.
To prepare for construction, 20 PT PAL employees completed two to three months of training in Cherbourg, France, where they learned welding techniques, preheating procedures and quality control.
Naval Group said it is providing ongoing technical support and training under the programme. The company currently has eight experts working with PT PAL, with the team expected to grow to around 50.
French and Indonesian personnel have also been paired to support knowledge transfer, while French staff are learning Bahasa Indonesia to improve communication.
Indonesia’s order makes it the first country to export the lithium-ion battery version of the Scorpène submarine. It also joins Brazil, Chile, India and Malaysia as operators of the Scorpène class.
Unlike traditional offset agreements, the partnership includes the transfer of submarine design methods, pressure hull construction, systems integration, production management and long-term maintenance expertise to Indonesia.
PT PAL previously gained experience through the construction of Type 209 submarines. The Scorpène programme expands that experience by introducing advanced manufacturing techniques, including stealth technologies, combat system integration and lithium-ion battery management.
Preparations for construction included infrastructure upgrades, workforce training and improvements to production systems. PT PAL completed its steel-cutting qualification in December 2025, meeting the standards required for pressure hull construction.
The Scorpène Evolved also features acoustic-reduction technologies developed from French submarine programmes to reduce noise during operations. Its sonar system uses advanced signal processing to improve the detection and tracking of submarines, surface ships and unmanned underwater vehicles.
Compared with conventional diesel-electric submarines that use lead-acid batteries, the lithium-ion battery system allows the submarine to spend more time underwater while reducing the need to surface for battery charging.
The submarine has an operational range of more than 8,000 nautical miles and can reach speeds of over 20 knots while submerged.
Indonesia’s location along key shipping routes, including the Malacca, Sunda and Lombok straits, makes submarine capability an important part of its maritime strategy.
The submarines are expected to support surveillance, intelligence gathering and sea-denial operations across Indonesia’s waters.
PT PAL and Naval Group have also discussed making Indonesia a regional production, maintenance and repair hub for future Scorpène operators.
The second submarine is expected to enter construction in 2027. Sea trials for the first submarine are planned between 2030 and 2032, with delivery expected in 2032.
The second submarine is expected to undergo sea trials between 2031 and 2033 before being delivered in 2033. Officials said the schedule could be accelerated if the programme progresses as planned.
The project is expected to create around 2,250 skilled jobs across manufacturing, engineering, systems integration and long-term submarine support. It also involves several Indonesian companies alongside PT PAL as part of efforts to expand the country’s defence industry.
References: interestingengineering, defencesecurityasia
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