Indonesia Secures $1.25B Loan to Finance the Procurement of Two OPVs from Fincantieri

Indonesia has secured a $1.25 billion loan from Italy to fund the purchase of two multi-purpose offshore patrol vessels from the Fincantieri shipyard.

Jakarta signed a €1.2 billion (~$1.25 billion) agreement for two PPA-class ships in March this year.

The loan, provided by BNP Paribas with participation from French Credit Agricole and Italian financial institution SACE, will finance the procurement of PPA-class vessels. The deal is expected to be finalized by the end of the year, with the Indonesian Ministry of Finance set to sign the loan agreement, SavunmaSanayiST reports.

Indonesia’s interest in the PPA-class ships grew after the visit of the Francesco Morosini, a PPA vessel, to Indonesia in July 2023 during its East Asia tour.

The PPA-class ships are designed for a variety of missions, including maritime patrol, search and rescue, civil defense, and combat. The vessels weigh between 5,800 and 6,300 tons.

Italy’s Navy has already received three PPA ships, with additional ships expected to be commissioned between 2025 and 2026.

Additionally, while Indonesia’s state-owned shipbuilder PT PAL is not involved in this particular deal, it is constructing two 6,540-ton frigates for the Indonesian Navy under a $720 million contract.