UKEF secured £128 million made-in-Britain submarine rescue vehicle deals with Indonesia

UK Export Finance (UKEF) has secured £128 million in funding to help sell British-made submarine rescue vehicles to the Indonesian Navy. This deal is set to infuse over £67 million into the UK economy through leading British suppliers Submarine Manufacturing and Products Ltd (SMP Ltd) and Forum Energy Technologies Ltd (FET), supporting jobs across the domestic maritime and defence sectors.

Tim Reid, CEO, UKEF, said, “These two landmark deals demonstrate exactly what UK Export Finance exists to do – back British exporters to win major contracts on the world stage, while delivering real economic benefits at home. Together, these deals will generate over £67 million for the UK economy and support jobs across our supply chain, from Bristol to York.”
 

He added, “We are proud to be helping Indonesia develop a vital submarine rescue capability, and to be doing so by showcasing the very best of British expertise in subsea engineering. This is UKEF’s first dive into submarine rescue contracts of this kind, and I hope it marks the beginning of an even stronger UK-Indonesia partnership.” 

Support for UK suppliers

The contracts awarded to UK suppliers are led by Bristol-based SMP Ltd and York-headquartered FET. SMP Ltd will contribute over £39 million to the UK supply chain by contracting multiple UK companies to provide goods and services, including training and ship design. As one of the world’s leading commercial diving and subsea engineering specialists, SMP Ltd anticipates increased job creation for its workforce.

Separately, FET will supply a submarine rescue system valued at approximately £30 million. Over the past year, FET has increased its workforce by 50%, driven largely by this contract. With more than 45 years of experience, FET is a leading designer and manufacturer of subsea vehicles, having delivered over 900 manned and unmanned systems, including four submarine rescue vehicles.

On this, Ben Sharples, Managing Director, SMP, said, “SMP Ltd is proud to support the Indonesian Navy with our 50-person submarine rescue vehicle (SRV-F), that can be deployed by air and by sea. Supported by a new build mothership, SRV-F is able to provide rescue coverage across Indonesia’s extensive archipelago. UKEF’s backing and the support of its financial partners has been critical to contracting this vital capability.” 

Chris Buckle, Commercial Manager, FET, also quoted, “FET is proud to be working with the Indonesian Navy on the supply of a 610m rated submarine rescue system. This award reflects the Navy’s commitment to enhancing submarine safety and rescue preparedness, and we are honoured to contribute our proven expertise, technology and operational experience to this critical capability. We also extend our thanks to our partners in Indonesia, ANK, and to UK Export Finance for their invaluable support in enabling this project.” 

Financing details and strategic importance

UKEF has provided two loan guarantees to support these transactions. The first deal is worth £76 million. It supports the export of an SRVS from SMP Ltd in partnership with Indonesian firm PT BTI Indo Tekno, financed by JP Morgan Chase’s Singapore Branch.

Xian Lin Mah, APAC Head of Export & Agency Finance at J.P. Morgan Payments, said, “J.P. Morgan is pleased to have arranged the Buyer Credit Facility supporting the export of the Submarine Rescue Vehicle System to the Indonesian Navy. This financing enables the delivery of highly specialised, safety-critical capabilities and underscores the importance of long-term funding solutions for complex, large-scale projects.”

The second, worth £52 million, supports the export of an SRVS supplied by FET, working with Indonesian partner PT Agrapana Nugraha Katara (ANK), with financing arranged through Banco Santander.

Patrick McAweeney, Head of Export & Agency Finance UK at Banco Santander, added, “Banco Santander is pleased to have supported the financing of Indonesia’s Deep Submarine Rescue Vehicle (DSRV) programme, an important project enhancing Indonesia’s maritime safety and response capabilities. This transaction reflects our commitment to supporting UK exporters while strengthening international collaboration.”

These deals mark a significant step in enhancing Indonesia’s submarine safety measures after the 2021 KRI Nanggala tragedy. 

UK suppliers SMP Ltd and FET will work with Indonesian partners to provide a critical safety capability for the Indonesian Navy.

Peter Tjahjono, Director at PT BTI Indo Tekno, quoted, “This collaboration underscores our steadfast commitment to advancing Indonesia’s maritime defence capabilities.” 

Through the development of the SRVS, we are modernising the Indonesian Navy fleet and establishing the highest safety standards for our submarine personnel. This project is a testament to our dedication to the nation’s strategic interests,” he added.

Broader economic impact and future outlook

This announcement follows the UK Government’s Modern Industrial Strategy, which recently secured 4,200 jobs following over £700 million of investment in battery manufacturers, auto firms, and SMEs across Britain’s advanced manufacturing sector.

Over the past two years, UKEF has backed over £6.6 billion in advanced manufacturing investment and plans to expand its capacity further this summer to help British companies seize international market opportunities.

The UK-Indonesia submarine rescue contracts exemplify UKEF’s role in backing businesses, providing finance for developing and emerging markets, and creating mutual benefits for communities overseas and in the UK.

By 2029, UKEF plans to back £10 billion of finance in low- and middle-income countries, supporting sustainable infrastructure, clean growth, and economic development, while securing vital export wins for British businesses.