According to reports published by the Bangkok Post on July 4, 2024, China is offering to sell Indonesia a partially completed submarine originally ordered by Thailand, proposing the inclusion of a German-made engine if Jakarta prefers.
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A model of the S26T submarine at Defense & Security in Bangkok. (Image source: Navy Recognition)
The submarine in question is the S26T diesel-electric model. In recent weeks, officials from the China State Shipbuilding Corporation (CSSC) visited Jakarta and presented the proposal to the Indonesian Ministry of Defense. Chinese officials assured that the submarine could be adapted to the specifications of the Indonesian Navy, although it is already in the construction phase.
The deal between Thailand and China, concluded in May 2017, has been plagued by significant delays. A major problem arose when Germany refused to supply the diesel engine originally stipulated in the contract due to an EU embargo on military goods, forcing China to propose a domestic alternative. Thailand negotiated terms to either accept the Chinese engine or terminate the contract without penalties.
At the Jakarta meeting, the CSSC stressed that Indonesia would have the option to choose an engine from any supplier, including Germany’s MTU, addressing a major concern that has stalled the Thai deal. In addition, the offer to Indonesia includes a package of modifications for the submarine, allowing it to deploy and launch Chinese-made YJ-18 torpedo tube-launched anti-ship cruise missiles.
China Shipbuilding & Offshore International Co (CSOC) was originally contracted to build the submarine for 13.5 billion baht under a deal between the Thai government and the government. Construction was about halfway complete when the COVID-19 pandemic caused delays, further compounded by the engine supply problem.
China’s move appears to be a strategic attempt to salvage the troubled project by redirecting the partially completed submarine to a new buyer, while offering assurances that sidestep problems with the Thai deal.
