Date Posted: 02-Sep-2024
Author: Ridzwan Rahmat, Singapore
Key points
- China appears to be hedging its bets after doubts emerge over its contract to supply the RTN with the S26T diesel-electric submarine
- Indonesia could benefit from a sweetened deal as China decides to bundle its proposal for the submarine with a Type 052D destroyer
It was an overture that the Indonesian Navy initially paid no attention to but has now been sweetened to a point where it becomes difficult to ignore. This is the description that was given by sources close to the matter to China's most recent attempt to sell a partially built S26T submarine to Indonesia.
Indonesian Navy Chief Admiral Muhammad Ali first received an all-expenses-paid invitation from China Shipbuilding Trading Company (CSTC) to visit a Chinese submarine-building facility in December 2023, documents provided to Janes confirm.
The invitation letter did not specify the shipyard that Adm Muhammad Ali and his delegation would be touring, but Janes understands that it was intended to be a location in Wuhan, where Wuchang Shipbuilding has been working on an S26T diesel-electric submarine (SSK) since September 2018. However, the Indonesian Navy chief did not visit the Chinese shipyard.
A scale model of the S26T submarine that was ordered for the Royal Thai Navy. (Janes/Kelvin Wong)
Thailand contract
This under-construction submarine that China intended to showcase to Indonesia was initially built for the Royal Thai Navy (RTN). It was signed for under a THB13.5 billion (USD397 million) contract inked between the RTN and China Shipbuilding & Offshore International Company (CSOC) in 2017.
The submarine was to be the RTN's first in more than 70 years after the service retired its last Japanese-built Matchanu-class boats in the 1950s. The procurement was seen as timely, given the recent proliferation of submarines in Southeast Asia.
The S26T is essentially an export variant of the People's Liberation Army Navy's (PLAN's) Yuan class customised for Thailand's requirements, which included an air independent propulsion (AIP) system.
Steel for the SSK was cut in September 2018, and it was laid down in September 2019.
However, unexpectedly in October 2023 Thailand's Defence Minister Sutin Klungsang disclosed that the Thai government decided to postpone the submarine project but would instead procure a frigate from China.
According to Thailand, a key factor behind the decision was Germany's refusal to export to China the S26T's engine, the MTU 396, which is based on a series integrated into most conventional naval submarines.
In May 2024 China suggested powering the S26T with its indigenously developed CHD620 engine, but Thailand has yet to confirm that it will proceed with this proposal.
Given the risks surrounding the contract, China approached Jakarta about a possible S26T sale in December 2023. Indonesia is known to have an outstanding requirement for at least four more boats, especially after losing one of its Cakra-class SSKs in April 2021.
