UK secures £4bn maritime partnership with Indonesia, safeguarding 1,000 jobs
The UK has agreed a £4bn maritime partnership with Indonesia that is expected to secure around 1,000 jobs at shipbuilding sites in Rosyth, Bristol and Plymouth, the government has announced.
The deal, to be confirmed by Prime Minister Keir Starmer during a call with Indonesian President Prabowo Subianto at the G20 summit, will see British company Babcock lead a programme to help develop Indonesia’s naval and maritime capabilities. The initiative includes support for the construction of more than 1,000 vessels for Indonesia’s fishing fleet, aimed at boosting food security and strengthening local shipbuilding.
Under the agreement, the boats will be built in Indonesia using British design and engineering expertise. The government says the partnership will sustain jobs in the UK, with most expected at Babcock’s Rosyth shipyard and further roles at facilities in Bristol and Devonport.
Officials in London and Jakarta say the programme will also support Indonesia’s wider ambitions to modernise its maritime sector, revitalise fishing communities and protect marine biodiversity. The project forms part of President Prabowo’s plans to increase domestic food production.
Mr Starmer said the deal demonstrated the value of international partnerships in supporting UK industries. “This agreement is the latest example of how our strong global relationships are delivering jobs, opportunities and growth at home,” he said, adding that it reinforced both countries’ commitment to stability in the Indo-Pacific.
The initiative builds on existing maritime cooperation, including recent visits to Jakarta by the UK Carrier Strike Group and patrol vessel HMS Spey. The government said the partnership would allow for greater interoperability and joint training between the two navies.
Babcock chief executive David Lockwood described the agreement as a “major investment and commitment”, saying it would deliver economic benefits in both countries while supporting Indonesia’s naval and maritime development.
The programme will include technology-transfer initiatives, joint research into new shipbuilding techniques — including automation and artificial intelligence — and expanded collaboration between UK and Indonesian educational institutions.
The vessels will also be supported by the UK’s Blue Planet Fund, which finances marine conservation and sustainable fishing projects in developing countries.
The agreement follows a series of recent UK international defence and maritime export deals, including a £10bn contract with Norway for new anti-submarine warfare destroyers and an £8bn agreement with Türkiye for 20 Typhoon fighter jets.
UK officials say the Indonesia partnership forms part of a broader strategic relationship agreed by Mr Starmer and President Prabowo last year.
