PELAKITA.ID – Indonesia and the United Kingdom have entered a new and consequential phase of strategic cooperation, marked by a landmark maritime investment commitment secured by President Prabowo Subianto during his official visit to London in late January 2026.
Valued at £4 billion (approximately Rp90 trillion), the agreement represents one of the most significant bilateral maritime initiatives Indonesia has undertaken in recent years, signaling a decisive shift toward industrial strengthening, job creation, and maritime sovereignty.
The agreement was reached following high-level discussions between President Prabowo and UK Prime Minister Keir Starmer, underscoring a shared commitment to expanding cooperation in shipbuilding, maritime capability, and long-term economic development. More than a commercial arrangement, the partnership reflects a growing alignment between Jakarta and London in navigating economic and security challenges in the Indo-Pacific region.
A Landmark Visit to London
President Prabowo arrived in London on January 19, 2026, for a working visit aimed at deepening bilateral relations across multiple sectors, including maritime development, education, and environmental diplomacy. The visit featured key meetings with Prime Minister Starmer at 10 Downing Street, as well as an audience with King Charles III at Lancaster House—highlighting the strategic importance both nations attach to the relationship.
At the center of the discussions was a comprehensive maritime partnership designed to strengthen Indonesia’s domestic shipbuilding industry, enhance national food security through modernized fishing fleets, and generate large-scale employment opportunities at home. For President Prabowo, the maritime sector is not merely an economic domain but a foundational pillar of Indonesia’s national development agenda.
The Maritime Partnership Programme (MPP)
The backbone of the agreement is the Maritime Partnership Programme (MPP), a £4 billion bilateral initiative involving Indonesian shipyards and British engineering firm Babcock International. Under the programme, more than 1,500 fishing vessels will be constructed and assembled in Indonesia, supported by British technical expertise, engineering standards, and technology transfer.
This approach marks a clear departure from traditional procurement models that rely heavily on foreign-built imports. Instead, the MPP prioritizes domestic production, ensuring that Indonesian workers build, assemble, and maintain the vessels themselves.
The shift is expected to significantly enhance local industrial capacity while embedding advanced maritime know-how within the national workforce.
Beyond commercial fishing vessels, the programme also includes advanced shipbuilding components, notably the licensing of Arrowhead 140 frigates through an initial agreement with Babcock.
These modern warships are intended to strengthen Indonesia’s naval capabilities and broaden the scope of cooperation into the defense and maritime security domain.
Economic Impact: Jobs and Growth
One of the most compelling outcomes of the Indonesia–UK maritime partnership is its projected impact on employment. According to Cabinet Secretary Teddy Indra Wijaya, the construction and assembly of 1,582 fishing vessels could generate employment for up to 600,000 Indonesians.
This figure includes approximately 30,000 maritime crew members, 400,000 workers in ship production and assembly, and an estimated 170,000 additional jobs arising from multiplier effects across supporting sectors such as logistics, ports, steel manufacturing, and marine services.
Such a scale places the MPP firmly beyond the category of a conventional industrial project. Instead, it stands as a nationwide socio-economic initiative, designed to integrate coastal communities into the formal maritime economy.
By revitalizing fishing villages, improving livelihoods, and strengthening domestic food systems, the programme directly aligns with President Prabowo’s broader vision of inclusive and sustainable economic growth.
Strategic and Security Dimensions
While the economic benefits are substantial, the maritime partnership also carries strategic significance. With nearly three-quarters of its territory consisting of ocean, Indonesia’s long-term stability depends heavily on its ability to develop and control maritime infrastructure.
Through the MPP, Indonesia is strengthening its shipbuilding expertise and building sovereign production capacity—critical elements for maritime resilience.
The cooperation includes efforts to enhance naval capability, improve coastal surveillance, and support maritime defense systems, contributing to broader Indo-Pacific security objectives shared by both Jakarta and London.
For the United Kingdom, the partnership also supports domestic industry. British shipyards in Rosyth, Bristol, and Devonport are expected to benefit from related orders, engineering collaboration, and skills exchange, helping sustain jobs at home while expanding exports of maritime technology and expertise.
Complementary Cooperation in Education and Innovation
Beyond shipbuilding and security, President Prabowo’s visit emphasized the importance of education and human capital development. Indonesian officials held discussions with leading UK universities, including members of the prestigious Russell Group, to expand cooperation in science, technology, engineering, and medical education.
This educational component reflects a shared long-term vision: investing in future generations to support maritime innovation, industrial modernization, and technological competitiveness.
It also reinforces the idea that sustainable maritime development depends as much on skilled people as on physical infrastructure.
Presidential Perspective
President Prabowo described the maritime partnership with the United Kingdom as a “very important and strategic” milestone for Indonesia’s maritime economy.
He emphasized that the agreement is historic not only because of its scale, but also because of its potential to modernize Indonesia’s fleet while empowering fishermen and coastal communities through scalable and sustainable economic opportunities.
The Indonesia–UK maritime partnership stands as a clear testament to the strengthening strategic relationship between the two nations. Anchored by substantial investment, large-scale job creation, and meaningful technology transfer, the cooperation has the potential to transform Indonesia’s maritime industry and reinforce shared economic and security interests in the Indo-Pacific.
As implementation moves forward, attention will focus on the pace of vessel construction, the emergence of new shipbuilding clusters across Indonesia, and the expansion of follow-up bilateral initiatives built upon this foundational maritime cooperation.