Thai-Commissioned Submarine ‘Gifted to Indonesia’ Bangkok Post Learning

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 specialist in military, national security and transportation issues.

The development comes despite Thailand’s claims that the troubled deal to acquire the Chinese submarine is back on track.

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

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 instead of the German engine.

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

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