Sunday, December 3, 2023

PT PAL to buy Scorpene submarines from Naval

Reading Time: 2 minutes
Gusty da Costa





State-owned shipbuilder PT PAL Indonesia and French defense company Naval Group are under negotiation on several issues in the purchasing of Scorpene submarines. A source from Naval told Indonesia Business Post that the discussion was focusing on the number of Scorpene submarine that will be purchased and the price of a submarine unit.

“It is still under discussion but PT PAL will buy between 2 and 6,” the source said on November 3, 2022, on the sideline of the Indo Defense 2022 Expo and Forum in Jakarta. He added that the budget for the acquisition of the Scorpene would range between US$4 and $6 billion.

However, PT PAL refused to comment on the issue when contacted by the Post.

On February 10, 2022, Naval Group CEO Pierre Eric Pommellet and PT PAL CEO Kaharuddin Djenod signed a Memorandum of Understanding (MoU), witnessed by Indonesia Defense Minister Prabowo Subianto and the then French Minister of the Armed Forces Florence Parly.

The MoU was to leverage the capabilities of both companies to meet the growing requirements of the Indonesian Navy. Both companies are leaders in their markets and confirm their willingness to further increase their cooperation by opening a joint R&D center involving other Indonesian companies.

Scorpene, the source said, was a special submarine with a stealth technology with armament and weapons capability. “It has the capability to fire a missile and torpedo, which is a big difference to other submarines,” he said.

Naval will provide technical assistance and transfer of technology to PT PAL in developing the submarine. “PT PAL is a good choice for manufacturing our submarines, it is an augmentation of capability because the submarine designer has its own technology and technical skills. PT PAL is completely ready and skillful to manufacture this kind of submarine,” the source added.

To manufacture Scorpene submarine, a shipyard has to provide the materials and guarantee the resistance of the submarine hull. The submarine has subsystem of energy production, electricity, DTE sensors with sonar and others.

A shipyard may have the capability to make the hull. However, it needs to have the capability to integrate all the subsystem from difference companies. Naval, the source said, had a huge partnership with different companies that make the subsystem such as sensors, sonar and periscope from French company Safran Group.

“It is a job of system integration to install, validate and deliver a submarine,” he added.

Generally, it takes 6 to 8 years to build a submarine, depending on the specification. Currently, Naval and PT PAL is under discussion on the duration of the submarine manufacturing. The life cycle of Scorpene submarine can range from 35 to 45 years.

Gusty da Costa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The government is advised to exercise caution in developing nuclear power plants (NPPs) as their development poses various risks that require careful consideration.
Presidential and vice-presidential candidate Prabowo Subianto and Gibran Rakabuming Raka have outlined their vision to construct 10 innovation cities across Indonesia if they emerge victorious in the 2024 Presidential Election.
The government plans to encourage larger exports to non-traditional markets such as India, Pakistan, and Mexico. Indonesia’s exports have traditionally been dominated by China, the United States, and European countries.¬†
The Corruption Eradication Commission (KPK) is currently investigating three cases of alleged corruption in the Ministry of Agriculture (Kementan), involving the procurement of cattle, horticulture, and extortion.
PT PGN Tbk, a Subholding Gas under Pertamina, is committed to enhancing its responsiveness to customer complaints by implementing various initiatives.
The official establishment of the Comprehensive Investment and Policy Plan (CIPP) within the Just Energy Transition Partnership (JETP) marked a significant milestone in Indonesia’s move towards achieving net-zero emission.