Korea's Daewoo Shipbuilding and Marine Engineering is expected to sign a $1.1bn contract with Indonesia next month to build three 1400t Type-209 diesel submarines for the Indonesian Navy.
The deal, if finalised, will be the first export of submarines from the country.
The 56m-long submarine has an underwater endurance of about two weeks and can remain submerged to a depth of up to 250m.
The submarine can accommodate a crew of 33 sailors, has a surface speed of 11kts and can cruise submerged at 22kts.
Daewoo was selected by Indonesia in June 2011 over competitors from France, Russia, and Germany.