Indonesia has postponed plans to purchase two submarines for its navy until 2011 due to insufficient funds.

Despite the fact that there will be a step up in the fund allocation by 20% in 2010, the country cannot purchase main weapon systems such as submarines and new jet-fighters as the budget increase will primarily be for maintenance services and purchase of spare parts, a senior defence official said.

The country had previously announced plans to purchase two submarines by 2010. Germany (U-209), South Korea (Changbogo), Russia and France (Scorpen) are among those expected to supply the submarines.