Indonesia’s $1BN Aircraft Carrier: Cost, Capabilities & Regional Impact
Muggiano, Italy – – Fincantieri delivered the second of two multipurpose combat ships (PPA) to the Indonesian Navy at its shipyard in Muggiano, La Spezia, Italy. The vessel, named KRI Prabu Siliwangi-321, follows the delivery of its sister ship, KRI Brawijaya-320, in .
The delivery ceremony was attended by high-ranking officials from both nations, including Admiral Muhammad Ali, Chief of the Indonesian Navy, and Admiral Giuseppe Berutti Bergotto, Chief of the Italian Navy. Representing Fincantieri were CEO and Managing Director Pierroberto Folgiero, and General Manager of the Naval Vessels Division Eugenio Santagata. Their presence underscored the strengthening defense collaboration between Italy and Indonesia.
The PPAs are intended to become the largest and most technologically advanced combat units in the Indonesian Navy, and represent a strategic asset for regional stability and the protection of Indonesian national interests, according to Fincantieri. The ships are designed for a wide range of missions, including frontline combat operations, maritime patrol, rescue, and civil protection activities.
Indonesia’s acquisition of the PPAs is occurring alongside a separate, ambitious effort to acquire an aircraft carrier. While details remain fluid, the Indonesian Navy is in negotiations with Italy and Fincantieri regarding a decommissioned Italian carrier. According to Admiral Muhammad Ali, the vessel will likely be used primarily for humanitarian missions.
The deal involves Indonesia bearing the cost of restoring the ship to operational condition, including retrofitting systems to meet Indonesian Navy requirements and safety standards. The total cost of the acquisition, including the ship itself, related systems, transport, and carrier-optimized helicopters, is estimated at approximately US$1 billion, according to Defence Security Asia.
Analysts note that Indonesia’s geography as a vast archipelagic nation with numerous waterways and strategic chokepoints justifies the need for a larger naval presence, including a potential aircraft carrier capability. However, limitations exist, particularly the current lack of vertical-landing aircraft compatible with carrier operations. The vessel is primarily designed to operate helicopters, as well as aircraft capable of vertical takeoff and landing, such as the Harrier or MV22 Osprey.
Beyond traditional aircraft, experts suggest the carrier could be repurposed to deploy drones for a variety of purposes, including reconnaissance and potentially carrying payloads. Khairul Fahmi of the Institute for Security and Strategic Studies (ISESS) has pointed out the potential to extend the reach of both small and larger drones, capable of carrying weapons and conducting intelligence, surveillance, and reconnaissance missions. He highlighted the effectiveness of drone swarms, as demonstrated in the Russia-Ukraine war, in overwhelming enemy defense systems.
However, the financial implications of operating an aircraft carrier are significant. Annual operating costs are estimated to range between US$50 million and US$80 million. Some analysts, such as Abdul Rahman Yaacob of the Rabdan Security and Defence Institute in Abu Dhabi, question the suitability of such a vessel for disaster relief, citing the need for speed, flexibility, and shallow-water access – characteristics not typically associated with aircraft carriers.
Yaacob also suggests that the acquisition could raise concerns among Indonesia’s neighbors, who may not perceive the carrier as solely a disaster-relief tool, despite domestic messaging. “Neighbours and external powers are unlikely to view a carrier primarily as a disaster-relief tool, regardless of how it is described domestically,” he wrote in an article published in in The Diplomat.
The delivery of KRI Prabu Siliwangi-321 marks a significant milestone in the ongoing partnership between Fincantieri and the Indonesian Ministry of Defense. The PPAs are expected to play a crucial role in bolstering Indonesia’s naval capabilities and contributing to regional security in the Indo-Pacific region. The Indonesian Navy’s chief of staff, Muhammad Ali, stated on , that the carrier will likely be used primarily for humanitarian missions, and reiterated on , that negotiations with the Italian Navy and Fincantieri are ongoing.