Britain and Indonesia have finalized a £4 billion ($5.24 billion) maritime deal, a landmark agreement led by UK defence firm Babcock International to build vessels for the Southeast Asian nation. Announced on November 22, 2025, the deal underscores a deepening strategic partnership between London and Jakarta, with implications for both defence cooperation and economic growth.
Strategic Maritime Partnership
The agreement, known as the Maritime Partnership Programme (MPP), will see Babcock collaborate with Indonesia to develop naval vessels and more than 1,000 fishing boats, strengthening Indonesia’s maritime security and food supply chains. The vessels will be built in Indonesia using British shipbuilding expertise, while the programme also promises technology transfer, joint research, and training in advanced shipbuilding practices, including automation and artificial intelligence Tempo.co English Kontan Babcock International.
Economic and Industrial Impact
The UK government confirmed the deal will support 1,000 jobs in Britain, primarily at Babcock’s Rosyth shipyard in Scotland, as well as facilities in Bristol and Plymouth. For Indonesia, the investment is expected to revitalize local shipbuilding, bolster fishing communities, and enhance national defence capabilities. Prime Minister Keir Starmer described the agreement as a “commitment to global stability and prosperity in the Indo-Pacific,” highlighting its role in reinforcing freedom of navigation and a rules‑based international order Daily Mail Defence Industry Europe Baird Maritime.
Geopolitical Significance
The deal comes amid heightened tensions in the South China Sea, where Indonesia has sought to strengthen its naval presence. By partnering with Britain, Jakarta gains access to advanced maritime technologies while London expands its footprint in the Indo-Pacific, a region increasingly central to global security and trade.
Outlook
The £4 billion partnership positions Britain as a key defence and industrial ally for Indonesia, while offering both nations long‑term benefits in security, trade, and technological innovation. As the programme unfolds, it is expected to serve as a model for cross‑continental defence collaboration, balancing economic opportunity with strategic resilience.
