Business

PAL aims to build submarine
worth $400m

State ship builder PT PAL is bidding for a contract from the Defense Ministry to construct submarines worth between US$350 and $400 million each this year.

“The Defense Ministry plans to buy submarines. We expect to win the contract so that we can build the submarines in our plant,” PT PAL president director Harsusanto told The Jakarta Post on the sidelines of the IBBEX 2010 in Jakarta on Thursday.

The government has planned to buy five submarines to strengthen the country’s sea defense.

Harsusanto said that the ministry might hold a tender for procurement of the submarines later this year.

He acknowledged that PT PAL lacked experience in constructing a submarine.

“Some modules might be constructed overseas and we will ask foreign technicians involved in the project to transfer the technology to PAL,” he said.

He added that the company had worked with Demen Schelde Netherlands Shipyard (DSNS) in building a destroyer escort warship ordered by the Defense Ministry in August.

The $220 million warship is 104 meters in length and runs on four engines. It is equipped with censor devices and armed with missiles.

“We expect to deliver the ship in August 2014,” Harsusanto said, adding that PAL had sent several technicians for an internship at DSNS.

The company, which has the largest shipyard located in East Java, also offers some repair and maintenance services.

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