China has reportedly put forward a significant proposal to Indonesia, suggesting the transfer of three former People’s Liberation Army Navy (PLAN) Type 039A “Yuan”-class attack submarines. This offer, hinted at during the recent Indo Defence 2025 Expo in Jakarta, could provide the Indonesian Navy with a crucial interim underwater capability as its aging Type 209 submarine fleet approaches the end of its service life. The move underscores a subtle but impactful shift in naval procurement trends across Southeast Asia.
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The Yuan-class submarines are conventional, diesel-electric submarines known for their quiet operation and modern capabilities. For Indonesia, acquiring these vessels could offer a relatively swift pathway to bolster its naval deterrence and maritime surveillance in the near term. This comes at a time when the strategic importance of the Indo-Pacific region continues to grow, and nations are increasingly focused on strengthening their maritime defenses.
Indonesia currently operates a fleet of German-designed Type 209 submarines, some of which are decades old and require replacement or significant upgrades. China’s proposal presents a more immediate solution for maintaining and enhancing Indonesia’s underwater presence, compared to the potentially longer wait times associated with acquiring newer, high-end platforms like the Scorpène Evolved submarines, which Indonesia is also considering.
This offer is not merely a commercial transaction; it carries significant geopolitical implications. It highlights China’s growing influence in the region’s defense sector, potentially drawing Indonesia closer into Beijing’s sphere of military and strategic cooperation. Such a transfer would also contribute to a gradual realignment in regional procurement, as Southeast Asian nations weigh their defense modernization needs against geopolitical allegiances and economic considerations.
Indonesia now faces a critical decision: opting for the near-term deterrence offered by the Yuan-class submarines could provide a timely boost to its naval capabilities. However, this must be weighed against the long-term strategic benefits and deeper technological integration that more advanced, Western-sourced submarines might offer. The choice will not only shape the future of the Indonesian Navy but also reflect broader trends in the complex geopolitical landscape of the Indo-Pacific.