The strategic partnership between the companies is expected to boost the maritime defence of Indonesia.
It will also see both the companies use their expertise and capabilities to fulfil the increasing defence needs of the Southeast Asian country.
The signing took place at the Office of the Ministry of Defense of the Republic of Indonesia. It was witnessed directly by Indonesian Defence Minister general Prabowo Subianto and French Armed Forces Minister Florence Parly.
Naval Group CEO Pierre Eric Pommellet said: “We welcome the declarations of the Minister of Defence of Indonesia to engage cooperation in the submarine domain between PT Pal and Naval Group.
“We have signed a Memorandum of Understanding for that purpose and are looking forward to working together on the submarine programme to meet the needs of the Indonesian Navy and to strengthen the Indonesian naval and defence industry.”
Further, Indonesian Defence Minister Prabowo Subianto expressed intention to procure two Scorpene submarines for the Indonesian Navy from Naval Group.
The vessels will feature air-independent propulsion technology and be equipped with complete armaments.
PT Pal CEO Dr Kaharuddin Djenod said: “It is an important history for the two countries. The French Government is very serious in supporting Indonesia’s capabilities development of defence equipment. And we, PT PAL are proud to be an important part of this historic moment.”