Bangkok Post – Subscription ordered by Thailand ‘gifted to Indonesia’

China reportedly claims Jakarta can even have a German engine if it wants.

China is reportedly offering to sell Indonesia a half-built submarine originally ordered by Thailand, and says it will include a German-made engine if that is what Jakarta wants.

The news was reported this week by Janes, a leading expert on military, national security and transportation issues.

The development comes as Thailand says a deal to acquire the troubled Chinese submarine is back on track. Defense Minister Sutin Klungsang said in May that negotiations would take another month or two to conclude.

Officials from the China State Shipbuilding Corporation (CSSC) visited the Defense Ministry in Jakarta on June 28, Janes reported on its website.

Chinese officials gave a presentation on how the S26T diesel-electric submarine could be customized to meet the needs of the Indonesian Navy, even though the vessel has already gone through the construction process.

CSSC officials assured the ministry that the offer to Indonesia would not face the same types of export restrictions faced by the Royal Thai Navy.

The initial contract signed by Thailand in May 2017 called for a German-made diesel engine. But the plan changed after Germany refused to sell the engine to China because it is considered a military/defense item and subject to a European Union embargo.

Beijing is trying to persuade Thailand to accept a Chinese-made generator in place of the German engine without facing a penalty for breach of contract.

At the Jakarta meeting, the Chinese delegation said Indonesia could fit an engine into the ship from a supplier of its choice, including Germany-based MTU, Janes reported.

The offer to Indonesia also includes a package of modifications that would allow the S26T to deploy and launch anti-ship cruise missiles launched from Chinese-made YJ-18 torpedo tubes.

China Shipbuilding & Offshore International Co (CSOC) was originally contracted in 2017 to build the submarine for 13.5 billion baht under a government-to-government deal with Thailand.

Construction was reportedly halfway complete when it was delayed due to the Covid-19 pandemic and then suspended due to an engine problem.