⚓ Indonesia is hoping to receive similar vessels from South Korea and has proposed to take on foreign loans to fund the possible acquisition.
Pohang class corvette (DID) ⚓
In an apparent about-turn, the Indonesian Ministry of Finance (MoF) has approved a previously rejected proposal for the country to purchase ex-Republic of Korea Navy (RoKN) Pohang-class corvettes with foreign-sourced loans.
The approval was confirmed in a notice issued by the MoF to the Indonesian Ministry of Defense (MoD) on 7 December. A copy of the notice was provided to Janes by a source close to the matter in late January 2023.
Janes first reported in October 2022 that the MoD had requested to procure at least one ex-RoKN Pohang-class corvette as a stopgap measure for the Indonesian Navy. The ministry had also proposed that the procurement be financed with funds from a foreign lender. This proposal was rejected by the MoF then, but no reasons were given.
Details provided in the 7 December notice indicate that this proposal was re-submitted by the MoD on 28 October, in addition to a list of other proposed procurements, such as shipborne munitions. The MoD has now cleared the MoF to take on up to USD21 million in foreign loans to fund the proposed acquisition of up to three Pohang-class corvettes.
“The acquisition of foreign-sourced goods and services must take into account the involvement of local companies and how these companies can contribute to the strengthening of Indonesia's strategic industries,” the MoF notice stipulated.
Pohang class corvette (DID) ⚓In an apparent about-turn, the Indonesian Ministry of Finance (MoF) has approved a previously rejected proposal for the country to purchase ex-Republic of Korea Navy (RoKN) Pohang-class corvettes with foreign-sourced loans.
The approval was confirmed in a notice issued by the MoF to the Indonesian Ministry of Defense (MoD) on 7 December. A copy of the notice was provided to Janes by a source close to the matter in late January 2023.
Janes first reported in October 2022 that the MoD had requested to procure at least one ex-RoKN Pohang-class corvette as a stopgap measure for the Indonesian Navy. The ministry had also proposed that the procurement be financed with funds from a foreign lender. This proposal was rejected by the MoF then, but no reasons were given.
Details provided in the 7 December notice indicate that this proposal was re-submitted by the MoD on 28 October, in addition to a list of other proposed procurements, such as shipborne munitions. The MoD has now cleared the MoF to take on up to USD21 million in foreign loans to fund the proposed acquisition of up to three Pohang-class corvettes.
“The acquisition of foreign-sourced goods and services must take into account the involvement of local companies and how these companies can contribute to the strengthening of Indonesia's strategic industries,” the MoF notice stipulated.
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