Indonesia, Daewoo Sign $1.1 Billion Contract For 3 Submarines

Jakarta (AHN) - Indonesia's defense ministry announced Wednesday it has signed a contract with South Korean shipbuilder Daewoo Shipbuilding Marine Engineering (DSME) to construct three submarines for the Indonesian navy.

The ministry's Defense Facilities Agency chief, Maj. Gen. Ediwan Prabowo, and DSME president and CEO Nam Tae-sang signed the contract in Jakarta with South Korean ambassador Kim Young-sun, South Korean defense attaché Col. Cheol Moo-dae and officials from the Indonesian Defense Ministry, Indonesian Military and Navy headquarters as witnesses, according to the ministry.

Under the contract, worth a total $1.1 billion, DSME will build two submarines together with Indonesia's state-owned shipbuilder PT PAL. The third submarine will be built in PT PAL's yard in Surabaya.