The Jakarta Post reported that state ship builder PT PAL is bidding for a contract from the Defense Ministry to construct submarines worth between USD 350 and USD 400 million each in 2010.

Mr Harsusanto president director of PT PAL said that "The Defense Ministry plans to buy submarines. We expect to win the contract so that we can build the submarines in our plant."

Mr Harsusanto said that the ministry might hold a tender for procurement of the submarines later this year. He acknowledged that PT PAL lacked experience in constructing a submarine.

He added that "Some modules might be constructed overseas and we will ask foreign technicians involved in the project to transfer the technology to PAL."

He added that the company had worked with Demen Schelde Netherlands Shipyard (DSNS) in building a destroyer escort warship ordered by the Defense Ministry in August.

Mr Harsusanto said that the USD 220 million warship is 104 meters in length and runs on four engines. It is equipped with censor devices and armed with missiles. He added that "We expect to deliver the ship in August 2014."

PAL, which has the largest shipyard located in East Java, also offers some repair and maintenance services.

(Sourced from www.thejakartapost.com)