LONDON, — April 11, 2026 : The United Kingdom’s export credit agency, UK Export Finance (UKEF), has finalized £128 million in loan guarantee financing to support the export of British-manufactured submarine rescue vehicle systems (SRVS) to the Indonesian Navy (TNI AL). The agreements support two major contracts awarded to UK-based subsea engineering firms and are intended to enhance Indonesia’s underwater search and rescue capabilities while reinforcing the UK’s maritime and defense industrial base.
The financing package is divided between two companies: Submarine Manufacturing and Products Limited (SMP), headquartered in Bristol, and Forum Energy Technologies Ltd (FET), based in York. The guarantees are backed by international financial institutions and executed in cooperation with Indonesian industry partners.
Financial Structure and Contract Allocation
The larger portion of the financing—£76 million—is allocated to SMP through a UKEF-backed loan guarantee arranged with JP Morgan Chase, Singapore Branch. The project is being executed in partnership with Indonesian firm PT BTI Indo Tekno (BTI Defence). This marks the first instance of UKEF support for a joint contract involving both SMP and BTI Defence.
The remaining £52 million supports FET’s contract, with financing provided by Banco Santander. FET is working in partnership with PT Agrapana Nugraha Katara (ANK), an Indonesian defense company.
System Capabilities and Technical Specifications
Under its contract, SMP will deliver the SRV-F Mk 3 submarine rescue system. The vehicle is a free-swimming, manned submersible designed for untethered rescue operations at depths exceeding 500 meters. It is operated by a crew of three and has a rescue capacity of 50 submariners per dive, enabling a “One Out, All Out” evacuation approach for conventional submarine crews.
The SRV-F Mk 3 has a displacement of 50 tonnes and is powered by advanced lithium polymer batteries providing a minimum endurance of 12 hours. It supports Transfer Under Pressure (TUP) operations at 50 meters seawater and is compatible with launch and recovery systems in sea states with wave heights up to 3.5 meters. The vehicle has a through-water speed of 3 knots under its own propulsion and can be towed at speeds up to 7 knots. It is air-transportable via A400M aircraft and incorporates a NATO ANEP MNEP 85/85.1-compliant mating skirt capable of connecting at angles of up to 45 degrees.
The SMP contract also includes a 92.5-meter bespoke mothership equipped with a TUP system, dedicated decompression chamber, and medical support facilities. The vessel has a beam of 19.5 meters, draft of 5.3 meters, air draft of 28.5 meters, and an estimated displacement of 5,320 tonnes. It is capable of speeds up to 17 knots and includes a helipad. The ship design was developed by Houlder, with construction planned at an Indonesian shipyard. The underlying contract, originally announced in September 2023, spans a three-year design and production phase.
FET will supply the LR600 submarine rescue system, a piloted submersible rated for operations at depths of up to 605 meters. The vehicle has a capacity of 20 personnel and is integrated with a launch-and-recovery system, a fully equipped hyperbaric rescue facility, and a decompression system. It incorporates advanced sonar and sensor systems for locating distressed submarines, along with automated depth, heading, and piloting functions.
The LR600 system will be manufactured at FET’s facility in Kirkbymoorside, Yorkshire, while the launch-and-recovery system will be produced at the company’s site in Bryan, Texas. Sea trials for the system are scheduled for 2028. Initial details of the FET contract were reported in June 2025.
Economic Impact in the United Kingdom
UKEF stated that the SMP contract is expected to contribute more than £39 million directly to the UK supply chain through procurement of goods and services, including ship design and training. The FET contract is valued at approximately £30 million in domestic economic contribution. Combined, the two agreements are projected to generate over £67 million in direct economic benefits for the UK, supporting jobs and industrial activity in regions including Bristol and Yorkshire.
The financing represents UKEF’s first major involvement in submarine rescue system contracts of this scale and underscores its role in facilitating exports within the defense and maritime sectors.
Strategic Context for Indonesia
The acquisition of dedicated submarine rescue systems addresses a critical operational requirement for the Indonesian Navy. The need for independent deep-water rescue capability was emphasized following the loss of the submarine KRI Nanggala (402) in April 2021.
The procurement aligns with Indonesia’s broader naval modernization efforts, particularly the expansion of its submarine fleet. The country is progressing with plans to construct two Scorpène Evolved submarines domestically, with steel-cutting qualification completed and construction scheduled to begin in June 2026. In addition, the Indonesian Ministry of Defense has evaluated the potential acquisition of compact submarines from Italian manufacturer DRASS for operations across its archipelagic waters.
Industrial and Operational Outlook
FET, which has more than 45 years of experience in subsea systems, has delivered over 900 manned and unmanned vehicles, including four previous submarine rescue vehicles. The company reported a 50 percent increase in its workforce over the past 12 months, largely attributed to the Indonesian contract.
The UKEF-backed financing framework is intended to support timely delivery of both rescue systems while facilitating the transfer of operational and maintenance expertise to Indonesian partners BTI Defence and ANK. Once operational, the systems will provide Indonesia with immediate-response submarine rescue capabilities to support its expanding underwater fleet.
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