Daewoo Shipbuilding & Marine Engineering "Expecting Second Phase of Indonesian Submarine Project to Take Effect in First Half of Next Year"

President Park Duseon Interviews Korean Reporters
"Expectations for 50th Anniversary of Indonesia-Korea Diplomatic Relations Next Year"
Exploring Export Routes to the Philippines and Thailand

Park Doo-sun, President of Daewoo Shipbuilding & Marine Engineering, attended the 'Indo Defense 2022' event held on the 3rd at the JIExpo Exhibition Hall in Jakarta, Indonesia, and introduced a scaled-down model of a submarine.
[Photo by Ministry of National Defense Joint Press Corps]

[Jakarta (Indonesia) = Ministry of National Defense Joint Press Corps & Asia Economy Reporter Jang Hee-jun] Park Doo-sun, CEO of Daewoo Shipbuilding & Marine Engineering (DSME), stated, "Negotiations for Indonesia's second submarine project are progressing."

Park visited Indonesia from the 29th of last month (local time) for a 5-night, 6-day schedule but urgently extended his stay by one day. This was because signs emerged that the stalled second submarine project with Indonesia, managed by Daewoo Shipbuilding since the contract was signed in 2019 but not yet activated for about three years, might finally gain momentum.

On the 3rd, Park held an interview with Korean reporters at the JI Expo exhibition hall in Jakarta, saying, "Discussions with Indonesia regarding the submarine issue are progressing well," and added, "I think the second submarine project could be activated by the first half of next year if possible."

The Indonesia second submarine project involves constructing three 1,400-ton class submarines. The contract amount was a total of 1.02 billion USD at the time. DSME won the contract by outbidding competitors like Russia with the 'DSME 1400' submarine, which is an upgraded version of the domestically produced 1,400-ton class Jangbogo-class submarine tailored to Indonesia's requirements. However, Indonesia signed the contract but did not activate it. Contract activation means the issuance of an export letter of credit (L.C).

Park explained, "In the past, Indonesia delayed activation for about a year after signing the contract but then suddenly accelerated the activation process," and added, "Next year marks the 50th anniversary of diplomatic relations between Korea and Indonesia, so I expect this to have a positive impact on the submarine activation as well." He continued, "The reason for extending my stay by one day in Indonesia was to have deeper discussions regarding the activation," emphasizing, "I will do my best to ensure visible results."

Park also visited 'Indo Defense 2022,' Southeast Asia's largest defense industry exhibition held at the JI Expo exhibition hall from the 2nd to the 5th of this month. He hinted that he plans to explore export opportunities to countries such as the Philippines and Thailand through this exhibition.

Park said, "The Philippine Navy has never had submarines before, but we are conducting in-depth negotiations to export our 1,400-ton class 'DSME 1400' submarine," and explained, "We plan to persuade the Philippine government by highlighting that we are not just selling submarines but providing a comprehensive package including technology transfer, facility provision, training, and after-sales maintenance services to foster mutual growth with the Philippines."

Regarding Thailand, he stated, "We have already secured a contract for a frigate construction project and will challenge the second frigate project next year," emphasizing, "Since the first frigate project has been progressing well, we are confident about the second project as well."

This content was produced with the assistance of AI translation services.