The United Kingdom and Indonesia have signed a wide-ranging maritime agreement valued at £4 billion, marking a major bilateral defence and industrial collaboration announced by both governments. Focused on naval collaboration and large-scale vessel construction, the deal emphasises technology transfer, shipbuilding modernisation, and sustainability.
Announced by UK Prime Minister Sir Keir Starmer during the G20 Summit, the Maritime Partnership Programme will be led by Babcock and is expected to secure roughly 1,000 jobs across the United Kingdom. Most roles will be based at Babcock’s Rosyth shipyard, with further activity in Bristol and at Devonport. According to Downing Street, the agreement builds on existing cooperation, including recent visits to Jakarta by the UK Carrier Strike Group and the offshore patrol vessel HMS Spey.
For Indonesia, the partnership represents a substantial uplift in domestic manufacturing capacity. More than 1,000 vessels for the country’s fishing fleet will be built locally using British expertise, which the UK government says will support Indonesia’s ambitions to expand food production responsibly while safeguarding marine biodiversity. The UK government noted that the programme will also strengthen Indonesia’s naval capabilities. Separate Blue Planet Fund projects associated with the programme include work related to coastal resilience.
Industry leaders have emphasised the scale and strategic nature of the programme. Babcock chief executive David Lockwood said, ‘The Maritime Partnership Programme between Indonesia and the UK is a major investment and commitment, building on the strong foundations between nations while driving economic growth for both countries.’ He added that the programme will ‘advance critical Indonesian naval and maritime programmes’ and stimulate supply chain activity in the United Kingdom.
The partnership includes significant technology transfer, particularly in automation, digital ship design, precision engineering and artificial intelligence. Babcock will collaborate with universities and training institutions in both countries to develop technical skills. These elements align closely with trends shaping the maritime carbon economy, where advanced digital systems are increasingly central to optimising vessel efficiency, integrating lower carbon propulsion, and enabling more intelligent operational management.
Supported by the UK’s Blue Planet Fund, sustainability is a core component of the agreement, which includes projects on fish stock assessment, marine conservation and coastal community resilience. While the vessels being procured are not explicitly tied to low carbon propulsion, the focus on next-generation shipbuilding practices raises the prospect of future integration of cleaner technologies. This aligns with wider UK industrial policy, including more than £1.1 billion of joint government and industry investment announced in September to support green technologies such as hydrogen, ammonia and methanol.
Indonesian President Prabowo Subianto highlighted the domestic development opportunities, stating that ‘[t]hrough our historic partnership, we will develop and build our vessels domestically, supported by the expertise, experience and technology from the United Kingdom.’ He added that the collaboration will create high quality jobs and strengthen Indonesia’s shipbuilding and defence capabilities.
For international shipping stakeholders focused on carbon markets, the agreement signals two emerging trends. First, Indo Pacific partnerships are increasingly becoming vehicles for modernising shipbuilding capacity in ways that support digitalisation and future fuel readiness. Second, sustainability requirements embedded in development finance, such as those attached to the Blue Planet Fund, are beginning to influence how major vessel procurement programmes are structured.
Although the programme is principally framed around security and economic development, its emphasis on next-generation shipbuilding practices positions both the United Kingdom and Indonesia to participate more actively in the global shift toward lower-carbon maritime operations.
