FINCANTIERI and Indonesia’s state-owned PT PAL have signed a Memorandum of Understanding (MOU) establishing a framework for cooperation on the future modernisation programme of the Indonesian Navy’s (TNI-AL) newly commissioned KRI Sriwijaya, which is the Italian Navy’s Fincantieri-built former ITS Giuseppe Garibaldi. Originally commissioned as an aircraft-carrying cruiser, the vessel was built at the company’s Monfalcone shipyard and delivered to the Italian Navy in 1985.
Signed in Jakarta by Fincantieri Naval Vessels Division vice president sales Mauro Manzini and PT PAL president director Djenod Kaharuddin, Fincantieri and PT PAL will collaborate on the Sriwijaya’s modernisation programme, combining their respective expertise and jointly defining the scope of activities and responsibilities within the programme. As the ship’s original designer and builder, Fincantieri will contribute its extensive knowledge of the platform, while PT PAL will leverage its established capabilities in naval shipbuilding, integration, maintenance and support service.
The programme is intended to maximise the vessel’s operational effectiveness across a broad range of missions, from defence and maritime security operations to humanitarian assistance and emergency response activities, while supporting the long-term capability development objectives of the TNI-AL. The Sriwijaya was commissioned last week, becoming the second country in Southeast Asia to operate an aircraft carrier after Thailand’s HTMS Chakri Naruebet. Earlier reports stated that maintenance and modernisation capabilities to modify the vessel for TNI-AL operations could reportedly cost between US$378 million and US$909 million.
Through this agreement, Fincantieri and PT PAL Indonesia will jointly define the most effective approach for the vessel’s future modernisation, drawing on the complementary strengths of the two companies and their long-standing experience in the naval sector, while also creating opportunities for broader industrial cooperation between Italy and Indonesia, including the involvement of leading industrial players and technology partners from both countries. The participation of additional stakeholders will foster the integration of advanced technologies, the development of local capabilities and the creation of long-term value for Indonesia’s maritime and defence ecosystem.
The agreement represents a further milestone in the strengthening of the relationship between Fincantieri and Indonesia, with recent key achievements including the Multipurpose Combat Ships/Pattugliatore Polivalente d’Altura (MPCS/PPA) offshore patrol vessels (OPV) KRI Brawijaya and KRI Prabu Siliwangi delivered in September and December 2025 respectively. The pair of PPAs are the TNI-AL’s newest and largest surface combatants and part of a class designed and built by Fincantieri for the Italian Navy. The PPAs rank among the most advanced naval platforms operated in the region. Building on this foundation, the MOU reflects a shared commitment to deepen industrial cooperation, promote technology exchange and support the development of naval capabilities.
Fincantieri’s CEO and managing director Pierroberto Folgiero said: “This agreement reflects the strong and steadily growing relationship between Italy and Indonesia in the naval and defence sectors. Southeast Asia is a key market for Fincantieri and a strategic area for the Group’s international growth, with Indonesia playing a central role in our long-term ambitions in the region. Over the years, our cooperation has expanded well beyond the delivery of advanced naval platforms, paving the way for broader industrial partnership based on technology, local capabilities and shared expertise. The former Giuseppe Garibaldi, a vessel that played a significant role in the history of the Italian Navy, now becomes a tangible symbol of this new phase. Together with PT PAL and the industrial ecosystems of both countries, we aim to build a long-term partnership that supports the Indonesian Navy, creates value for the country, and further strengthens the strategic relationship between Italy and Indonesia.”–-shp/adj/dl (Pix:FINCANTIERI)
