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Economy in brief: PAL to finish submarine production
State-owned shipbuilder PT PAL seeks to complete the construction of a submarine for the Navy this year
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State-owned shipbuilder PT PAL seeks to complete the construction of a submarine for the Navy this year.
PAL president director Budiman Saleh is optimistic that the firm will be able to finish the project, which kicked of last May, on time.
“We still have five steps to go after finishing the battery [making],” he said on Tuesday.
The submarine is among the three submarines to be procured by the Navy for 2018 from South Korea’s Daewoo Shipbuilding and Marine Engineering.
Another unit is already in use, while the other will be delivered soon to Indonesia.
PAL has been assigned to take part in the construction as the purchasing contract requires the transfer of technology from Korean firms to an Indonesian firm.
The Navy is set to buy 12 submarines throughout the year.
To build the submarine, PAL has received a state capital injection (PMN) of Rp 1.5 trillion (US$105 million), lower than its initial proposal to the government of Rp 2.5 trillion.
“The request for Rp 2.5 trillion capital injection is based on the intention of building [the submarine] from zero to full capability. But, with such a gap, we have to be realistic and set priorities,” said Budiman. — jlm
