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Fincantieri Signed A Contract To Provide 8 Frigates To Indonesia

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Fincantieri Signed A Contract To Provide 8 Frigates To Indonesia
Fincantieri picture.

Fincantieri Signed A Contract To Provide 8 Frigates To Indonesia

Fincantieri and the Ministry of Defense of Indonesia have signed a contract for the supply of 6 FREMM-class frigates, the modernization and sale of 2 Maestrale-class frigates, and the related logistical support.
Martin Manaranche 10 Jun 2021
Fincantieri press release

The order represents a success for Fincantieri and for the Country, which has a fleet of 10 FREMM ships. The agreement is of the utmost importance to strengthen the collaboration between two Countries in a strategic area of the Pacific.

Fincantieri will be prime contractor for the entire program. The construction of the frigates will ensure significant employment benefits not only for several Italian shipyards of the Group in the next years, but also for other companies in the sector, namely Leonardo, as well as numerous small and medium-sized national companies, and will see the collaboration of the local PT-PAL shipyard (Java island). The modernization of the two Maestrale class vessels, which Fincantieri will acquire from the Italian Navy once decommissioned, will also be carried out in Italy.

The acquisition of an order of this magnitude allows Fincantieri to also assume global leadership in the surface ships sector, and is the confirmation of the technological leadership of a project once again considered the most innovative on the market which led to 20 ships for several foreign Navies, between orders and options. This program has an extraordinary strategic importance, both for the economic return for our Country and for the Italian defense supply chain, and because it ensures Fincantieri’s strong positioning in the area, paving the way for the finalization of further important negotiations for other programs already in progress also in the civil sector”.
Finally, I want to acknowledge our Navy, which has made a decisive contribution to building together with the Country’s industry a ship that is appreciated all over the world and which fully satisfies its operational needs”.

Giuseppe Bono, CEO of Fincantieri
-End-

Naval News comments:
Several shipbuilders were reportedly competing for this tender, including Damen with its new Omega design, Mitsui E&S from Japan with the FFM, Babcock and OMT with the Iver Huitfeldt-class/Type 31 design.
According to our information the financial scheme is not yet finalized.

About Maestrale-class Frigates
Mistrale-class-frigates.jpg
Italian MoD picture.

Maestrale-class is a class of light frigates built in the 1980s by Fincantieri for the Italian Navy (Marina Militare). Eight were built and the last of the class was commissioned in 1985.

Four are still in service within the Italian Navy but are meant to be replaced by the Bergamini-class.

Specifications:
  • Displacement: 3040 tonnes
  • Length: 123 meters
  • Beam: 13 meters
  • Draught: 4.2 meters
  • Maximum speed: 33 knots
  • Range: 6000 nautical miles at 15 knots
  • Crew: 225
  • Armament : 4 × TESEO Mk-2 anti-ship missiles, double launchers; 4 × Albatross octuple Aspide SAM launchers, 1 × Otobreda 127 mm/54 gun; 2 × Oto Melara Twin 40L70 DARDO CIWS; 2 × Browning HB2B 12.7 mm; 2 × MG 42/59 7.62 mm; 2 × 533 mm torpedo tubes; 2 × 324 mm triple torpedo tubes with Mk-46 Mod.2 torpedoes

About FREMM-class Frigates
Fincantieri Signed A Contract To Provide 8 Frigates To Indonesia
Bergamini-class FREMM frigate. Fincantieri picture.

FREMM is a class of multi-purpose frigates designed by Fincantieri and Naval Group for Italian and French Navy. However, FREMM built by Fincantieri are heavier and more armed than their sisters of the French Navy.

FREMM are able to make a wide range of missions including anti-submarine warfare as well as anti-ship and anti-air warfare.

Specifications of the Frigates built by Finacntieri (FREMM specifications for Indonesia are still unknown) :
  • Displacement: 6700 tonnes
  • Length: 144m
  • Draught: 7.6m
  • Beam: 19,7m
  • Propulsion: CODLAG
  • Maximum speed: >27 knots
  • Range: 6000 nautical miles at 15 kn
  • Crew: 145
  • Weapons: 16 MBDA Aster 15 and 30 missiles; 2 × Leonardo OTO Melara 76/62 mm Davide/Strales guns; 2 × Leonardo Oto Melara/Oerlikon KBA 25/80 mm remote weapon systems; 8 × MBDA Teseo\Otomat Mk-2/A anti-ship and land attack missiles; 2 × triple Leonardo B-515/3 launcher for MU 90 torpedoes.
  • Aviation facility: 2 hangars
Fincantieri Signed A Contract To Provide 8 Frigates To Indonesia - Naval News
 
@Indos and other Indonesian members any comments.

It looks like a preliminary contract that will not become effective if there is no fincancial commitment from our Finance Minister as stated by one of our defense analyst who has insider in the government. He has already told about the contract around 3 days before this news come up that is initiated by Fincantery official website.

I would say this contract is still fragile as foreign loan will need Minister of Planning and Minister of Defense approval. Take a look on fighter acquisition where many news said about contract of 36 Rafales being signed, but the fact is Minister of Finance only approved 1.1 billion USD for fighter acquisition until 2024.

This is why our Mindef has shut their mouth until Today about those contracts since I believe they are still preliminary contract that can be failed if Indonesia gov doesnt back it financially. What I mean is whether our gov will approve the foreign loan from Italia and French or not.....If it is not approved then it will fail.

As far as I see the approved foreign loan coming from Minister of Planning for Navy, look like this contract is difficult to pass. And what has been approved by Minister of Planning will usually be slashed further by Minister of Finance. This happen for example for fighter acquisition, Minister of Planning approve 1.6 billion USD foreign loan but in the end we can only take 1.1 billion USD foreign loan as it is the number that Minister of Finance approved.

Just let some weeks to see as even until Today our media cannot get the confirmation from Minister of Defense about the contracts.

 
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@Indos and other Indonesian members any comments.

As far as I know the one that has already been approved by Minister of Planning and Minister of Finance is Iver Hutfield for 2 frigates that will be built completely in local shipyard PT PAL and currently is redesigned to meet our Navy requirements that also include PT PAL. InshaAllah will start being built in the end of this year or beginning of next year.


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According to Alman Helvast submarine foreign loan has also been approved which is likely Changbogo that will include PT PAL participation as well. In detail, third submarines will be built in PT PAL completely while 1 and 2 subs are partially built by PT PAL.

So what we can see from Jokowi administration is that only program that has highly participation of local industry that will likely be approved.

And our foreign loan for Navy is not much by the way. Total it will likely around or less than 15 billion USD foreign loan that have been approved by Minister of Planning (It will likely get slashed further by Minister of Finance) to be used for foreign defense equipment acquisition until 2024 for ALL BRANCH (NAVY, AIR FORCE, ARMY).

AIR FORCE will be the biggest which get foreign loan and its fighter program only get 1.1 billion USD approval from FM, so it will be difficult for Navy who has already got approval for Iver frigates and Changbogo (very likely) to buy another new 6 frigates where the local participation is not even clear.
 
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It looks like a preliminary contract that will not become effective if there is no fincancial commitment from our Finance Minister as stated by one of our defense analyst who has insider in the government. He has already told about the contract around 3 days before this news come up that is initiated by Fincantery official website.

I would say this contract is still fragile as foreign loan will need Minister of Planning and Minister of Defense approval. Take a look on fighter acquisition where many news said about contract of 36 Rafales being signed, but the fact is Minister of Finance only approved 1.1 billion USD for fighter acquisition until 2024.

This is why our Mindef has shut their mouth until Today about those contracts since I believe they are still preliminary contract that can be failed if Indonesia gov doesnt back it financially. What I mean is whether our gov will approve the foreign loan from Italia and French or not.....If it is not approved then it will fail.

As far as I see the approved foreign loan coming from Minister of Planning for Navy, look like this contract is difficult to pass. And what has been approved by Minister of Planning will usually be slashed further by Minister of Finance. This happen for example for fighter acquisition, Minister of Planning approve 1.6 billion USD foreign loan but in the end we can only take 1.1 billion USD foreign loan as it is the number that Minister of Finance approved.

Just let some weeks to see as even until Today our media cannot get the confirmation from Minister of Defense about the contracts.



Indos be like every time looks at the defense news with enthusiasm and sees the ministry's budget allocated for the project.

Eu74LVpU4AA5hDp.jpg
 
Indos be like every time looks at the defense news with enthusiasm and sees the ministry's budget allocated for the project.

Eu74LVpU4AA5hDp.jpg

Hehe it is Madokafs and many Indonesian members that was active in the forum within first Jokowi admin that have already been like this for the last 5 years of his administration as I was not active in PDF during the most Jokowi admin he he.

Like it or not, Indonesia is not a big spender of defense since Soeharto era until now, even our defense spending is less than Pakistan and Singapore.

This is why I am a realist and see economic development as number one since we always put defense budget less than 1 % of our GDP since Soeharto era, so the increase of defense spending can only be achieved if Indonesia economy grows.

Sri Mulyani ( our Finance Minister ) is very very economic guys, she even now try to tax our essential products like rices. I like her and I appriciate her work, just one thing that I think need to be fixed in the next administration which is to lower our gov bond interest which is higher than any nation that has similar rating with us, BBB+
 
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