£4bn Maritime Deal with Indonesia to Support UK Jobs and Indo-Pacific Security
The United Kingdom and Indonesia have reached a £4 billion maritime agreement expected to secure 1,000 jobs in the UK, representing a significant development for the British industry.
UK Jobs and Industrial Impact
The Maritime Partnership Programme (MPP), led by British defence company Babcock, will see the UK and Indonesia collaborate to enhance maritime capabilities for Indonesia’s navy and develop over 1,000 vessels for the country’s fishing fleets. The initiative is aimed at improving seafood consumption and supporting food security.
The vessels will be constructed in Indonesia using British shipbuilding expertise, safeguarding 1,000 jobs in the UK. The majority of roles are projected to be at Babcock’s Rosyth shipyard, with additional positions at the Bristol facility and Devonport dockyard.
Benefits for Indonesia
In Indonesia, the programme is expected to drive investment in local shipbuilding, revitalize fishing communities, strengthen defence and maritime security, and enhance food security, a key priority for President Prabowo Subianto. The initiative aligns with Indonesia’s objectives to increase food production responsibly while protecting marine biodiversity.
Official Statements
Prime Minister Keir Starmer stated, “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.”
President Prabowo Subianto added, “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.”
Maritime Cooperation and Strategic Goals
The partnership builds on existing maritime cooperation between the two countries, including visits by the UK Carrier Strike Group to Jakarta over the summer and HMS Spey earlier in the year. It aims to facilitate joint training, greater interoperability between navies, and uphold freedom of navigation in the Indo-Pacific region while supporting a rules-based international order.
The programme also includes technology transfer and joint research into next-generation shipbuilding practices, including automation and artificial intelligence. Babcock plans to collaborate with UK and Indonesian educational institutions to share expertise in precision engineering, digital ship design, and integrated naval systems, creating long-term benefits for both workforces.
Babcock and Economic Impact
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.”
Environmental and Sustainable Development
Supported by the UK’s Blue Planet Fund, which assists developing countries in protecting marine environments and reducing poverty, the vessels will be deployed in a socially, economically, and environmentally sustainable manner. The programme includes initiatives such as dynamic fish-stock assessment, fisheries management, marine conservation, and community-led coastal resilience projects.
Context of UK Defence Exports
The deal follows other UK agreements to export defence and maritime capability, including a £10 billion contract with Norway to build next-generation anti-submarine warfare destroyers supporting 4,000 UK jobs, and an £8 billion agreement with Türkiye for 20 Typhoon fighter jets, securing 20,000 jobs.