The United Kingdom and Indonesia have signed a landmark £4 billion (Rp87.7 trillion) maritime partnership that will strengthen Jakarta’s naval capabilities while deepening defense ties between the two G20 nations.

Under the agreement, British defense firm Babcock will lead a program to jointly develop naval vessels for the Indonesian Navy. The ships will be built in Indonesia using British shipbuilding expertise, with many roles also expected to be supported by Babcock’s Rosyth facility in Scotland.

Officials say the collaboration will enhance Indonesia’s maritime defense and spur investment into the country’s domestic shipbuilding industry.

The announcement comes on the heels of significant UK defense export achievements ‒ including a £10 billion deal with Norway for next-generation anti-submarine destroyers and an £8 billion agreement with Turkiye to supply 20 Typhoon fighter jets.

“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,” UK Prime Minister Keir Starmer said on Saturday, November 22, 2025. “And as one of our closest G20 partners, it reinforces our joint commitment to global stability and bolsters our shared national security.”

The partnership builds on recent maritime cooperation, such as the UK Carrier Strike Group’s visit to Jakarta this past summer and a port call from HMS Spey earlier in the year. It aims to improve interoperability between the two navies and support a rules-based international order across the Indo-Pacific.

The program also includes joint research into advanced shipbuilding technologies, including automation, precision engineering, digital naval design, AI integration, and modern combat systems.

“Babcock is proud to be leading the UK's industrial support for this international program, which will advance critical Indonesian naval and maritime programs,” Babcock Chief Executive David Lockwood said.

Indonesian President Prabowo Subianto said the collaboration would help build the country’s defense industry and workforce: “Through our historic partnership, we will develop and build our vessels domestically, supported by the expertise, experience and technology from the United Kingdom. The program marks a new phase in the Indonesia-UK bilateral relationship.”

He added that the initiative would create high-quality jobs in both nations and advance Indonesia’s long-term maritime security.

The deal forms a core element of the broader strategic partnership agreed by the two leaders in November last year.