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Indonesia, UK Deepen Ties Amid $5.4 Billion Shipbuilding Deal

Jayanty Nada Shofa
January 21, 2026 | 8:15 am
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Larry the Cat passes by President Prabowo Subianto and British Prime Minister Keir Starmer in Downing Street 10, London on January 20, 2026. (Photo Courtesy of Presidential Press Bureau)
Larry the Cat passes by President Prabowo Subianto and British Prime Minister Keir Starmer in Downing Street 10, London on January 20, 2026. (Photo Courtesy of Presidential Press Bureau)

Jakarta. President Prabowo Subianto and British Prime Minister Keir Starmer recently agreed to deepen bilateral ties, not long after a landmark maritime deal worth up to 4 billion pounds or approximately $5.4 billion.

Starmer hosted Prabowo in London on Tuesday local time as the latter made his second state visit to the former European Union member. The meeting saw the formal launch of what the UK called a “new, deeper strategic partnership”, which would see both countries working closer on climate, defense, and economic growth-related issues. They will also strengthen education and healthcare cooperation.

Starmer called these developments a “real sign” of how quickly the relationship has progressed. He also spoke of the 4-billion-pound Maritime Partnership Program. Signed last November, the deal saw Babcock developing the Indonesian Navy’s capability and building over 1,000 fishing vessels. The boat production takes place in Indonesia using British shipbuilding expertise. The UK expects this partnership to create 1,000 jobs on its soil.

“Thank you for the maritime agreement. … That is measured in very many jobs, which really matter in the UK,” Starmer told Prabowo.

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The Indonesian leader, too, admitted to having met with Babcock’s top brass. Prabowo went on to say that Indonesia is “very pleased to go ahead with this maritime partnership”.

Only the beginning parts of their meeting were publicly broadcast. In a follow-up doorstep interview, Prabowo said that the deal could clear the way for greater protein intake. Although the ocean makes up three-fourths of Indonesian territories, fish consumption remains staggeringly low.

“They [the UK] will support our plans on building 1,500 fishing vessels. We wish to largely invest in that. We want to improve the fishing villages, fishermen's livelihoods, the national protein consumption, and also boost our economy, particularly in the maritime sphere,” Prabowo said.

Indonesia reported that its aquaculture production reached 5.02 million tons as of Q3 2025. In 2024, the government revealed that the national daily protein consumption reached only 62.3 grams per capita, which is significantly lower than Malaysia’s 89.1 grams per capita.

Babcock is working on the Merah Putih Frigate in partnership with the state shipbuilder PAL, another building block to Indonesia’s major military upgrades. The frigate is based on Babcock’s Arrowhead 140 design. Prabowo is a former military general and ex-defense minister. He has previously said that countries that do not invest in arms risk losing their sovereignty.

Indonesia-UK trade totaled $2.4 billion between January and November 2025. Southeast Asia’s biggest economy recorded a $459.5 million surplus, down by around 42% year-on-year.

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