The Indonesian Defence Ministry has plans to purchase five submarines worth $350m-$400m each by the end of 2010 to strengthen maritime security in Indonesian waters.
State shipbuilder PT PAL president director Harsusanto said the ministry might hold a tender on the submarines this year.
Harsusanto said the company was expecting to be awarded the contract to construct the submarines.
PAL is currently working with Demen Schelde Naval Shipyard (DSNS) to build a new guided missile escort ordered by the Defence Ministry.
The Indonesian military (TNI) will require at least Rp57tn ($6.4bn) for weapons procurement in the next five years, according to the Jakarta Post.