Indonesia picks up a South Korean offer for three U209 model submarines instead of a Turkish-German joint offer. Still, the two countries may bid for a tender for the more developed U214 models, Jakarta says

Indonesia has informed a German-Turkish partnership that South Korea has won Jakarta’s competition for U209 submarines and that the duo should instead focus on the sale of more-developed U214 subs to the Southeast Asian giant, a senior Turkish official has said.

The message was conveyed during the visit of Adm. Agus Suhartono, the chief of staff of Indonesia’s military forces, to Turkey last week, the Turkish official said this weekend.

Turkey, led by the Undersecretariat for Defense Industries, SSM, and Germany, led by ThyssenKrupp’s shipyard, HDW, entered the Indonesian Navy’s competition of more than $1 billion after it came to an end, effectively ensuring Seoul’s victory.

South Korea’s Daewoo Shipbuilding and Marine Engineering announced on Dec. 22 that it had won the Indonesian deal $1.1 billion for three submarines.

As for Turkey, a $2 billion submarine deal with HDW for the joint manufacture of six U214 platforms formally took effect in July, the German company said. Turkish procurement officials also confirmed the information.
“As a longstanding partner and supplier to the Turkish Navy, ThyssenKrupp Marine Systems can now begin executing the order. The order will contribute to securing employment at [ThyssenKrupp’s] HDW in Kiel, as well as at many subcontractors in Germany and Turkey, for the next 10 years,” it said.

A major loan deal between German banks and the Turkish Treasury rescued the multibillion-dollar submarine contract between the Turkish state and Howaldswerke Deutsche Werft (HDW) on the last day of 2010, Turkish procurement officials said earlier.

“We will try to work hard to meet the requirements for the second competition [for the U214 deal],” said the Turkish procurement official.

The Indonesian side also offered a number of consolations to the Turkish side. The Indonesians will come up with a $100 million Turkish proposal to make military radios produced by Aselsan, the procurement official said.

The Indonesians separately plan to propose a facility to produce Roketsan-made missiles after they sign a contract with the company.

Jakarta will also produce FNSS-made 8x8 vehicles.

Turkey and Indonesia are two of the largest Muslim countries and are keen to develop their defense industries and ties.