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China Offers Indonesia Partially-Built Submarine Initially Meant for Thailand Amid Engine Controversy

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A model of a Yuan Class S26T submarine is proudly displayed at Royal Thai Navy headquarters. (Bangkok Post File Photo)

In an unexpected twist, China is now proposing to sell Indonesia a half-built submarine initially ordered by Thailand, inclusive of a German-made engine if that is what Jakarta prefers. This news, breaking this week courtesy of Janes, a renowned specialist in military, national security, and transport topics, has certainly stirred the waters.

To add to the intrigue, this proposal comes despite Thailand’s assertions that their tumultuous submarine deal with China is finally finding its footing. In May, Defence Minister Sutin Klungsang confidently stated that the drawn-out negotiations would need another one or two months to wrap up.

The plot thickens as officials from China State Shipbuilding Corporation (CSSC) made their way to the Ministry of Defence in Jakarta on June 28. According to Janes, the Chinese delegation presented a compelling case on how the S26T diesel-electric submarine could be tailored to meet the Indonesian navy’s unique requirements, even though the vessel is already partially constructed.

The CSSC representatives assured the ministry that the offer to Indonesia wouldn’t encounter the same export restrictions that have plagued the Royal Thai Navy’s order. A significant hiccup in the original contract, signed by Thailand in May 2017, was the decision to use a German-made diesel engine. This plan hit a snag when Germany refused to sell the engine to China, citing its classification as a military/defence item subject to a European Union embargo.

In a bid to persuade Thailand to accept a Chinese-built generator instead of the German engine, Beijing proposed a workaround without incurring penalties for breaching their contract. It’s a delicate dance, filled with diplomatic maneuvers and technical compromises.

During the Jakarta meeting, the Chinese delegation sweetened the deal for Indonesia, indicating that the engine could come from a supplier of their choice, including Germany-based MTU. This move was reportedly aimed at gaining favor by meeting the specific preferences of the Indonesian navy.

In addition to this, the offer to Indonesia includes an intriguing modification package. This package would enable the S26T submarine to deploy and launch Chinese-made YJ-18 torpedo tube-launched anti-ship cruise missiles—a potent addition to any naval arsenal.

Originally, China Shipbuilding & Offshore International Co (CSOC) was contracted back in 2017 to construct the submarine for Thailand at a staggering cost of 13.5 billion baht, under a government-to-government agreement. However, the project ran into rough seas, first delayed by the Covid-19 pandemic and then further stalled due to the contentious engine issue.

As the waves of this submarine saga continue to ripple across Southeast Asia, all eyes are now on Indonesia. Will Jakarta seize this potentially fortuitous opportunity, or will Thailand manage to salvage their initially longed-for prize? Only time will reveal the final destination of this submarine odyssey.

33 Comments

  1. Marcus July 4, 2024

    This deal seems really sketchy. Why would Indonesia want a half-built submarine that was originally meant for another country?

    • Joan K July 4, 2024

      Maybe because it’s a good deal for them economically? Plus, they can customize it to fit their own needs.

      • Marcus July 4, 2024

        But what if there are issues with the build? It’s like buying a used car with hidden problems.

      • Techie July 4, 2024

        Don’t underestimate the capabilities of CSSC. They know what they’re doing and can definitely tailor it to Indonesia’s specifications.

    • Tanya Blake July 4, 2024

      Indonesia’s naval needs are growing rapidly. This could be an opportunity to strengthen their fleet quickly.

    • Marcus July 4, 2024

      I just hope they’re not rushing into this without thorough checks.

  2. SkepticalMind98 July 4, 2024

    Isn’t this just another example of China’s aggressive expansion strategy? Selling military tech to gain a foothold?

    • A. Tanaka July 4, 2024

      You might be right. China always has a bigger plan in mind.

    • Ruth M. July 4, 2024

      How is this different from the US selling military equipment worldwide? This is just how geopolitics works.

    • SkepticalMind98 July 4, 2024

      True, but China’s moves are often more strategic and insidious.

  3. DeepThinker July 4, 2024

    The compliance with international sanctions is an interesting point. Germany refusing to sell engines to China adds a layer of complexity.

    • Paul J July 4, 2024

      Yes, it shows the intricate balance of military and economic power.

    • DeepThinker July 4, 2024

      Definitely. It’s like a chess game with every move calculated.

  4. GlobalCitizen23 July 4, 2024

    How do you guys feel about the idea of modifying the sub to launch YJ-18 missiles? Sounds like a big upgrade.

    • Sue July 4, 2024

      That’s a game-changer for any naval force. It would significantly boost Indonesia’s capabilities.

    • Derek Q July 4, 2024

      Exactly, and it means they’re not just getting leftovers but a potentially formidable weapon.

    • GlobalCitizen23 July 4, 2024

      True, but those upgrades likely come with a hefty price tag.

  5. Nomad44 July 4, 2024

    Indonesia should negotiate hard, they have leverage since China wants to dump this problematic sub.

  6. Andy W. July 4, 2024

    I wonder if Thailand will fight to keep their original deal. Seems like they’re already invested a lot.

    • Lara July 4, 2024

      I reckon they probably will. They’ve been waiting for so long already.

    • Andy W. July 4, 2024

      Yeah, and it’s not like they want to start the whole process over again with a new supplier.

  7. Jack July 4, 2024

    Can’t believe countries go through this much hassle over one submarine. Shouldn’t they be collaborating for better security?

    • Susan H. July 4, 2024

      National security is a top priority. Every country wants to maintain their edge without compromising.

    • Jack July 4, 2024

      At the expense of international relations though?

    • Alan S. July 4, 2024

      Submarines are strategic assets. You’re not just buying a piece of metal; you’re acquiring power.

  8. Maverick July 4, 2024

    I’m more concerned about the reliability of Chinese military tech. Are these subs even any good?

    • Jill R. July 4, 2024

      Those concerns are valid. China has had issues with quality control before.

    • Sunset123 July 4, 2024

      But they have been investing heavily in R&D. Their tech is improving fast.

    • Maverick July 4, 2024

      Hope Indonesia does their due diligence.

  9. Tom July 4, 2024

    Just feels like this whole situation is riddled with diplomatic tension. Germany, China, Thailand, and now Indonesia all in the mix.

    • Emma July 4, 2024

      It’s a real geopolitical puzzle. But that’s what makes international relations so interesting!

    • GeoJunkie July 4, 2024

      And risky. One wrong move and it could escalate into a bigger conflict.

  10. SilentObserver July 4, 2024

    Why are we not talking about the environmental impact of such massive military projects?

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