UK and Indonesia Agree £4bn Maritime Partnership, Securing 1,000 UK jobs

The UK and Indonesia have agreed to a £4 billion maritime partnership that will secure 1,000 jobs in Britain while strengthening Indonesia’s naval and fishing capabilities. 

The deal, known as the Maritime Partnership Programme (MPP), is led by British defence firm Babcock and was formally announced by Prime Minister Keir Starmer during a call with President Prabowo Subianto at the G20 Summit.

Under the agreement, the UK and Indonesia will jointly develop maritime capability for Indonesia’s navy and build more than 1,000 vessels for its fishing fleets. 

The programme is designed to boost seafood consumption and food security in Indonesia, one of President Prabowo’s top priorities, while also revitalising local shipbuilding and fishing communities. 

The vessels will be constructed in Indonesia using British shipbuilding expertise. In the UK, the deal will support 1,000 jobs, with most expected to be secured at Babcock’s Rosyth shipyard in Scotland, alongside further roles at the company’s Bristol site and Devonport dockyard in Plymouth. 

“This deal with Indonesia is the latest example of how our strong international partnerships are delivering real benefit for people at home in jobs, opportunity and growth,” said Prime Minister Starmer. “And as one of our closest G20 partners, it reinforces our joint commitment to global stability and bolsters our shared national security”.

The partnership builds on existing maritime cooperation between the two nations, and is expected to pave the way for greater interoperability and joint training between the Royal Navy and the Indonesian Navy. 

Both governments emphasised that the deal supports freedom of navigation and a rules-based international order.

Beyond immediate defence and food security benefits, the programme will drive technology transfer and joint research into next-generation shipbuilding practices, including automation and artificial intelligence. 

In addition, Babcock plans to expand collaboration between UK and Indonesian educational institutions to share skills in precision engineering, digital ship design, and integrated naval systems, bringing long-term benefits for both economies and workforces.

“The Maritime Partnership Programme between Indonesia and the UK is a major investment and commitment, building on the strong foundations between nations while driving economic growth for both countries,” said Babcock’s chief executive, David Lockwood. “Babcock is proud to be leading the UK’s industrial support for this international programme which will advance critical Indonesian naval and maritime programmes.  We will also generate positive economic impact across the UK, supporting high-value jobs, while stimulating the supply chain and SME opportunities”.

The programme will be supported by the UK’s Blue Planet Fund, which helps developing countries protect marine environments and reduce poverty. Future vessels will be deployed in ways that are economically, environmentally and socially sustainable.

“Through our historic partnership, we will develop and build our vessels domestically, supported by the expertise, experience and technology from the United Kingdom,” said President Prabowo Subianto.

“The programme marks a new phase in the Indonesia-UK bilateral relationship. This collaboration will mutually drive our economies, create high-quality jobs, and more importantly, advance Indonesia’s shipbuilding and defence capabilities. Crucially, it will also empower our local fishermen and coastal communities by presenting significant new economic opportunities”.

The agreement acts as part of a broader strategic partnership between the UK and Indonesia, first committed to in November 2025. 

It follows other major UK export deals, including a £10 billion contract with Norway for anti-submarine warfare destroyers supporting 4,000 jobs, and an £8 billion deal with Türkiye for 20 Typhoon fighter jets, securing 20,000 jobs.

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