Indonesia is on the verge of sealing a deal in the coming months to procure three more diesel-electric attack submarines from South Korea for its navy.

Officials are in the final stages of discussions to sign a contract with South Korean company Daewoo Shipbuilding and Marine Engineering (DSME) for a follow-on order of three additional submarines, IHS Jane’s reported.

Prior to choosing the DSME attack submarines, Jakarta considered several vessel types. The South Korean option was given the thumbs up given its commonality with earlier boats.

Citing unnamed industry sources, the publication stated that a formal contract for the boats is likely to be reached by the end of this month or early March.

Before finalising the contract, the parties need to agree on workshare arrangements that can be undertaken for each vessel, the sources confirmed.

With an estimated value of around $1.2bn, the contract will include support and training package across all three attack submarines.

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In December 2011, The Indonesian defence ministry awarded a $1.1bn contract to DSME to deliver three Type 209/1400 Chang Bogo-class submarines.

"With an estimated value of around $1.2bn, the contract will include support and training package across all three attack submarines."

The South Korean firm has so far delivered two submarines to the Navy. The third vessel, which was built by Indonesian state-owned ship manufacturer PT PAL in Surabaya, Indonesia, under a technology transfer programme, is set to be launched soon.

The Indonesian Navy commissioned the first submarine under this contract in August 2017 as KRI Nagapasa (403).

According to Jane’s, the first vessel in the follow-on contract is set to be assembled at DSME’s facilities in Okpo, South Korea.

Jakarta intends to build two of the submarine’s six modules at PT PAL’s Surabaya facility and ship them to Okpo for assembly. The remaining four modules will be constructed by DSME in South Korea.

Originally developed by Howaldtswerke-Deutsche Werft (HDW), the submarines are designed to perform low-noise operations.

Measuring 56m in length, the vessels are equipped with a modern combat management system.