Indonesian Navy indigenous support ship faces potential delay as commissioning deadline approaches

Ridzwan Rahmat, Singapore - IHS Jane's Defence Weekly
02 July 2014



An Indonesian Navy (Tentera Nasional Indonesia - Angkatan Laut, or TNI-AL) indigenously produced logistics support ship may miss its planned October 2014 commissioning deadline, after a shipyard visit by Indonesia's defence minister revealed that the vessel remains incomplete.

Minister for Defence Purnomo Yusgiantoro visited PT Daya Radar Utama's (DRU's) shipyard at Bandar Lampung in southern Sumatra on 28 June to check construction progress on the as-yet unnamed 120 m vessel. The minister was hosted by PT DRU's Director Amir Gunawan, who gave an update on progress and challenges faced. The nature of these challenges was, however, not made public.

PT DRU won a contract to construct the 6,000-tonne vessel, which features a roll-on/roll-off design, in December 2012.

The ship will be powered by twin diesel engines that provide 7,940 hp (5.84 MW) of propulsion, and is also equipped with an I-band navigation radar. A statement released by the Indonesian defence ministry indicated that the vessel will be used to transport the Indonesian Army's new Leopard tanks, as well as conducting other logistics support duties. The ship is scheduled to serve with the TNI-AL's Military Sealift Command Unit (KOLINAMIL) from 2015.

To date, there has been no formal indication from Indonesia that the vessel's build is delayed. Despite the current state of construction progress, Yusgiantoro told reporters during the visit that the defence ministry remains hopeful that the ship will be completed by September, in time for the scheduled commissioning.

COMMENT

Photographs of defence minister Yusgiantoro visiting the shipyard released by the Indonesian Ministry of Defence's media centre on 29 June show that the vessel is far from complete. The ship's superstructure was without livery and undergoing various levels of construction while its hull remained surrounded by scaffolding. This suggests that launch could still be a number of months away.

The ministry had hoped to showcase the vessel as an indigenously produced ship during an Indonesian National Armed Forces Day celebration in Surabaya on 5 October. The support ship was to have joined two LSTs under construction by state-owned shipbuilder PT Dok Kodja Bahari in an exhibition of the TNI-AL's new amphibious capabilities.

TNI-AU’s First F-16C Block 52ID Unveiled

Posted on July 7, 2014 by hafizuddinsulaiman

The Indonesian Air Force (TNI-AU) is another step closer of introducing the latest variant of F-16C Block 52ID Fighting Falcon into its existing F-16 fleet after the first aircraft (s/n: TS-1625) was unveiled following its subsequent upgrade and refurbishment works at the Regeneration Depot at Hill AFB.

TS-1625 has undergo Funtional Check Flight on April 21. It was the first of the 24 former United States Air Force (USAF) F-16 Block 25 fighters acquired by the Indonesian Government under the Peace Bima Sena II program through the Excess Defence Articles (EDA) arrangement ratified on January 17, 2012.

The ‘new’ Block 52ID fighters destined for Indonesia will be able to dispense an array of weapons including AIM-9P-4/L/M Sidewinder and IRIS-T SRAAM, AIM-120C AMRAAM, Mk 81/82/83/84 dumb bombs, Laser Guided Bomb (LGB), AGM-65 Maverick, JDAM, AGM-84 Harpoon ASM, AGM-88 HARM and many more. Should the AGM-88 HARM being procured and inducted into service, TNI-AU would be able to conduct SEAD/DEAD operation similar to those capabilities possessed by other ASEAN countries including Malaysia and Singapore.

The upgrade and refurbishment works conducted on the Indonesian Falcon are similar to those currently being conducted on the USAF Block 40/42 fleet known as Common Configuration Implementation Program (CCIP). Upgrade works include Mission Computer MMC- 7000A version M-5, Improved Data Modem Link 16 Block-52, Embedded GPS INS (EGI) Block-52 which combines the GPS and INS functions, AN/ALQ-213 Electronic Warfare Management System, ALR-69 Class IV Radar Warning Receiver, ALE-47 Countermeasures Dispenser Set. Meanwhile the AN/APG-68 (V) radar will also being upgrade in order to improve its capabilities.

These 24 F-16s Block 25, consist of five two seaters (D variant) and the rest are single seat fighters (C variant), will be delivered to Indonesia in stages. Six Indonesian pilots from SkU 3, a TNI-AU squadron which operates F-16 Block 15 Falcons out of Iswahjudi AFB in Madiun, have gone through Differential Training at Tuscon International Airport in Arizona where USAF 162nd Fighter Wing (162nd FW), an Arizona Air National Guard (ANG) is based.

The 162nd FW is the designated international training unit responsible to train would-be F-16 pilots from international operators including the RSAF, IASF, Royal Bahraini Air Force, TNI-AU, RTAF, TurAF as well as others.

The first batch of three ‘new’ Indonesian Falcons are slated for delivery from July 15 till July 20. Two of the Indonesian pilots undergoing training there would also be part of the ferry flight in which route include Utah-Alaska–Guam–Madiun.

Once delivery of all of these Falcons are complete, two TNI-AU squadrons, SkU 3 and SkU 16 have been designated as the fighter units which will operate them. This means that Iswahjudi AFB, already known as the Falcon’s Nest, and Rusmin Nuryadin AFB in Pekan Baru, Riau will be the airbases for the two respective squadrons.

Thailand builds hi-tech naval base – even though it has no submarines

State-of-the-art £9.8 million facilities – including submarine simulator – needed for the future, says rear admiral

Associated Press in Bangkok
The Guardian, Monday 7 July 2014 18.38 BST

Thailand's navy inaugurated a £10m headquarters and training centre for its submarine squadron on Monday, even though it has no subs to command.

The squadron and its facilities, including a submarine simulator from Germany, were established at an existing naval base in Sattahip, east of Bangkok, on the Gulf of Thailand.

The navy, which has had no submarines since 1951, has been trying to acquire some for years but has faced budgetary restraints. It says the new facilities are needed for the future.

Rear Admiral Panu Punyavirocha, head of the submarine squadron, told the Bangkok Post newspaper in October that the new facilities cost 540 million baht (£9.8 million).

Recent disputes over sea territory have made several Asian nations consider acquiring or expanding submarine fleets.

The military coup that ousted Thailand's civilian government in May could help with getting some submarines, as it will in practice administer the country until an election promised for October 2015 at the earliest. It received a vast increase in its budget after its last coup in 2006, a move that drew criticism from the press and public.

In 2011, Thailand negotiated to buy six small used submarines from Germany for 7.7 billion baht (£139 million), but let the deal expire. It then considered buying two larger new submarines from South Korea for 40 billion baht (£721 million), but no deal was concluded. The navy has sent submarine personnel for training in both Germany and South Korea.

Najib Announces Restructuring Of ESScom

PUTRAJAYA, July 8 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak today announced a restructuring of the Eastern Sabah Security Command (ESSCom) with the setting up of two major components - security and defence management as well as enforcement and public action.

He said the security and defence management component was aimed at pooling the resources of security agencies to enhance operational effectiveness.

This component would be led by an ESSCom commander who heads three special divisions, namely intelligence, security and defence as well as operations, he told a press conference at the Perdana Putra building here.

Najib also announced the appointment of ESSCom Security and Public Order Division director DCP Datuk Abd Rashid Harun as the ESSCom commander in charge of the intelligence, security and defence as well as operations division in the Eastern Sabah Security Zone (ESSZone) effective July 15.

"It is hoped that the restructuring of ESSCom and other measures taken and being taken will enhance the security in the Sabah east coast.

"The government hopes that the people, particularly those in the Sabah east coast, will always extend their full cooperation to strengthen security there.

"The support and cooperation of the people of Sabah will enable the security forces and others to maintain and strengthen security in the Sabah east coast," he said.

It was also aimed at enhancing and ensuring total engagement of the people at all levels with the security agencies in keeping the Sabah east coast free of intrusion and crime, he said.

He also said that it would lead to a common direction and concerted action by security personnel in ensuring safety and harmony in the Sabah east coast.

Najib said that besides restructuring ESSCom, three measures were also taken to enhance security in the Sabah east coast, one of which was enforcement of designated routes for boats entering Sabah waters.

"This measure will provide for more effective enforcement of security control and monitoring of boats in waters off the Sabah east coast.

"Boats which do not adhere to the rules will be detained and face action from the enforcement agencies based on the existing laws," he added.

Najib said the Bunga Mas 5 vessel would be used for sea basing or as a forward operations base as an interim measure pending the construction of a permanent sea basing structure.

It would take about six months for a permanent sea basing structure to be ready, he added.

He said the sea basing platform would also be equipped with a radar for wider coverage to detect the presence of boats in international waters.

In a move to further enhance security in the east coast of Sabah, 30 units of rigid hull fender boats (RHFB) were handed over to the Royal Malaysia Police, the Malaysian Armed Forces and the Malaysian Maritime Enforcement Agency on May 29.

The government established ESSZone on March 24 last year to prevent a recurrence of the intrusion by armed Sulu terrorists in Kampung Tanduo, Lahad Datu, on Feb 12 and safeguard the country's sovereignty as well as maintain public order.

ESSCom serves as a security enforcement agent for ESSZone which comprises 10 districts in eastern Sabah, namely Kudat, Kota Marudu, Pitas, Beluran, Sandakan, Kinabatangan, Lahad Datu, Kunak, Semporna and Tawau.

Although ESSCom had been able to prevent fresh intrusions, abduction remains a security threat.

Abductions reported in the east coast of Sabah this year include one on June 15 where a cage-fish breeder, Chan Sai Chiun, 32, and a worker known only as Mazlan, in his 20s, were kidnapped by two armed men from a fish farm.

Another incident happened on May 6 when six armed men abducted the Chinese national manager of a fish-breeding company from Pulau Baik in Lahad Datu.

This happened a month after a female tourist from China was kidnapped, together with a resort employee, by a group or armed men at a resort in Semporna.

Replying to a question on the cases of abduction, Najib said the vast area and the free mobility of the people leaving and entering the area were among the factors that contributed to the kidnappings.

"Due to the existence of a complex community, the action to combat abduction was heavily dependent on information. We want cooperation from the local people.

For example, resort owners, by way of helping the security forces, should not employ non-citizens as their workers," he added.

Najib also said that other measures, such as installing of closed circuit television cameras and deployment of security personnel at suitable locations, were important to enhance security in Sabah waters.

Asked whether the post of the ESSCom commander would be rotated, Najib said it would depend on the situation.

"For now, we appoint the police to lead," he added.

Also present at the press conference were Chief Secretary to the Government Tan Sri Dr Ali Hamsa, Inspector-General of Police Tan Sri Khalid Abu Bakar and Chief of Defence Forces Gen Tan Sri Zulkifeli Mohd Zin.

-- BERNAMA

Philippine Navy and Air Force set to receive armed AW-109Es – Pilot training to be determined

by Ishi Gonzales  6/07/2014 | 1:17 Posted in Nation

“We are still awaiting for the advise coming from AgustaWestland, they are the ones determining the [training] schedule,” Navy public affairs office chief Cmdr. Gregory Fabic told Philippine News Agency.

AgustaWestland will be delivering two armed AW-109Es “Power” helicopters to the Philippine Navy within the third quarter of this year.

Philippine Navy have ordered five AW-109Es “Power” helicopters. Three unarmed AW-109Es were already delivered.

The Philippine Air Force is also set to receive eight AW-109Es “Power” helicopters that will serve as PAF’s attack helicopters. These helicopters will be armed with machine guns and rocket launchers.

Department of National Defense decided to acquire same helicopter variant for the Air Force and Navy for easy maintenance and training.

“The AW109 Power is a three-tonne class eight seat twin engine helicopter. The spacious cabin is designed to be fitted with a number of modular equipment packages for quick and easy conversion between roles,” said AgustaWestland in a news release.

“The AW109 Power’s superior speed, capacity and productivity combined with reliability and ease of maintenance make it the most cost effective helicopter in its class for a range of government tasks,” the manufacturer added.

Seoul speeds up fighter jet development plan

Published : 2014-07-08 21:51
Updated : 2014-07-08 21:51

South Korea is accelerating its efforts to develop an indigenous warplane with a plan to give public notice of bids for the so-called KFX project as early as August.

The military plans to confirm its required operational capabilities for the project at the Joint Chiefs of Staff Council session in mid-July, and finalize the bidding plan during a session of the national defense acquisition program committee next month.

The KFX program, which includes both the development and production of the home-built warplane, is expected to cost nearly 20 trillion won ($19.7 billion). Under the project, Seoul seeks to deploy 120 fighters after 2023 to replace its aging fleets of F-4s and F-5s.

Since February, a Defense Ministry task force consisting of officials from the Joint Chiefs of Staff, Defense Program Acquisition Administration and Air Force has been conducting research for the development project.

The task force has had heated discussions particularly on whether to opt for a single- or double-engine platform. Sources said that the taskforce had chosen a double-engine platform.

The Agency for Defense Development and Air Force have demanded a double-engine type. They argued that a plane with two engines could carry more weapons and fuel, and improve the plane’s mobility with a greater thrust. They also said the survivability of pilots would be raised given that one engine would still function should the other break down.

But those favoring a single-engine platform have maintained that the double-engine type carries a higher price tag, thus making it less attractive for foreign buyers. They also argued that thanks to current advanced engine technology, the chances of engine-related accidents were not high.

According to government research, the development of a single-engine platform would cost 6.4 trillion won, while the double-engine platform would cost 8.6 trillion won.

Seoul’s efforts to accelerate the development of the new fighter underscores growing concerns over the potential air security vacuum. The Air Force is expected to face a shortage of around 100 fighters in 2019 when almost all of the F-4s and F-5s will be decommissioned.

By Song Sang-ho

So those are fixed gun sentries that can be put on truck? Can it be mounted on APC

Brunei to buy military aircraft

Monday, July 14, 2014

BRUNEI has confirmed that it will be buying a number of C-130J Super Hercules military transport aircraft from aerospace firm Lockheed Martin.

Pehin Datu Perkerma Jaya Major General Dato Pahlawan Mohd Tawih Abdullah, Commander of the Royal Brunei Armed Forces (RBAF), told The Brunei Times that the military is set to order the American-made aircraft sometime in the future.

“We will be buying the aircraft, but it won’t be a lot,” he said, adding that the planned quantity and date of order will be revealed in due time.

Latest figures estimate the average cost of the C-130J Super Hercules at US$100 to 120 million per unit for international sales.

A total of 300 units have been ordered by 15 nations, including Brunei, of which 250 aircraft have been delivered as of February 2012.

In March, Brunei announced a record defence budget of $719.2 million for 2014 to 2015, up 39 per cent from the previous year. Equivalent to 3.3 per cent of GDP, it is also the biggest percentage since 1990.

Meanwhile, Colonel (U) Hj Hamzah Hj Sahat, Deputy Commander of the Royal Brunei Air Force (RBAirF), said the acquisition of the C-130J Super Hercules will allow them to significantly increase contribution to regional humanitarian aid operations.

He explained that purchasing the Lockheed Martin military transport aircraft was part of the RBAirF’s capability modernisation, which also includes the fleet of 12 Sikorsky S-70i Black Hawks.

Used primarily by the United States military and Royal Air Force (RAF) of the British Armed Forces, the C-130J is a four-engine turboprop military transport aircraft with new engines, flight deck and other systems developed from the C-130 Hercules. Variants of the C-130 Hercules are also in service today with the armed forces of Malaysia, the Philippines, Singapore and Thailand.

The Brunei Times

Submarine Modernization in East Asia

Countries around the region are upgrading their submarine fleets.

By Michael Raska
July 14, 2014

On July 3, South Korea launched its fifth Type-214 submarine, ROKS Yun Bong-gil, a diesel-electric air-independent propulsion (AIP) submarine equipped with the Haeseong-3 missile, a supersonic, stealth precision-guided ship-to-surface missile with a range of 1,500 km. The launch signifies an important aspect of the regional “arms competition” in East Asia – the gradual introduction of new classes of conventionally powered diesel-electric submarines (SSKs), which are increasingly becoming “platforms of choice” – as force-multipliers in diverse missions as well as against superior forces.

Notwithstanding East Asia’s economic growth rates and deepening integration into the global economy, the region’s strategic realities reflect contending trajectories.  As China expands its national interests in the broader context of “new historic missions,” it seeks to regain a great power status and reassert its geopolitical role in the region.  As a result of China’s accelerating military modernization, regional powers are responding by revamping their force modernization priorities, alliances, and overall strategic choices.

The economic, political and military rise of China, embedded in three decades of relentless economic growth, has propelled progressive modernization of the Chinese military with major improvements in virtually every capability domain.

China’s Naval Modernization and Submarine Expansion

Notwithstanding weaknesses and limitations in capabilities integration, China’s PLA Navy (PLAN) is gradually transforming into a regional [blue water] defensive- and offensive-type navy with extended so-called anti-access/area-denial (A2/AD) capabilities, limited expeditionary capabilities, and corresponding defensive and offensive air power. China calls its comprehensive A2/AD strategy a “counter-intervention,” which is interpreted as denying the U.S. and its allies the freedom of action in China’s “near seas” by restricting their deployments into theatre (anti‑access) and denying them freedom of movement  there (area denial).     

An important aspect of China’s multilayered strategy is the gradual introduction of new classes of submarines: nuclear and conventional. China is currently operating as many as 45 submarines structured in six different classes: two classes of indigenously designed diesel submarines, including the Song class (Type 039) and the Yuan-class (Type 041), and four nuclear classes that include the Shang-class (Type 093), Jin-class (Type 094) nuclear powered ballistic missile submarines (SSBN), and the follow-on Type 095 nuclear-powered attack submarine (SSN) and Tang-class (Type 096) SSBN.

Since 2004, China is believed to have launched 12 Type 041 Yuan-class conventional submarines, which have been progressively modified to carry more advanced high-frequency sonar, upgraded weapons systems, noise reduction, and air independent propulsion (AIP) technologies. The PLA Navy may procure up to 20 additional Yuan-class submarines based on technologies imported from Russian boats. Since the mid-1990s, China has procured as many as 12 Kilo-class submarines from Russia, and is reportedly negotiating the purchase of at least four fourth-generation Amur (Lada)-class or possibly a fifth-generation Kalina-class, both featuring advanced AIP systems.

Regional Responses

In Northeast Asia, Japan and South Korea are prioritizing the procurement of new types of submarines. South Korea’s latest launch of its fifth Type-214 submarine in July, ROKS Yun Bong-gil, comes less than a year after the introduction of the 1,800 ton Son Won-ill class in September 2013, featuring AIP and advanced combat management systems. South Korea now operates 14 submarines: nine Type 209 Chang Bogo and five Son Won-ill class submarines. Meanwhile, in October 2013, the Japan Marine Self Defense Force (MSDF) launched its newest submarine, the Kokuryu – the sixth of ten planned Soryu class boats first commissioned in 2009.  With its range, endurance, sensors, weapons load, and other systems, including the Stirling AIP propulsion system and Harpoon anti-ship missiles, the Soryu class is regarded as the most advanced in Japan’s conventional submarine fleet of 16 submarines.

In Southeast Asia, the relatively high acquisition costs and maintenance requirements have traditionally precluded a quantitative diffusion of submarines. However, the recent introduction of more capable coastal diesel-powered submarines provides unprecedented capabilities. Most recently, Vietnam received two of six Kilo-class (Project 636) diesel-electric submarines from Russia in 2013-2014, designed for diverse reconnaissance and patrol, anti-submarine, and anti-ship missions.

Indonesia, Malaysia and Singapore are also planning to expand or upgrade their submarine fleets. From 2007-09, Malaysia took formal delivery of two French-built Scorpene-class submarines, equipped with underwater-launched Exocet anti-ship missiles. Both submarines are based at the Kota Kinabalu Naval Base in Sabah, East Malaysia, indicating their primary mission is to protect Malaysia’s sovereignty in part of the South China Sea.  Meanwhile, Indonesia has ambitious plans to expand its submarine fleet to at least six, and ideally to 12 by 2024, a key element in the “Minimum Essential Force” (MEF) and declared goal of developing a “green-water” navy.  In 2012, the Indonesian Navy (TNI-AL) announced a $1.1 billion contract for three Type-209/1400 diesel-electric submarines, constructed by South Korea’s Daewoo Shipbuilding and Marine Engineering.

In November 2013, Singapore announced a contract with German shipbuilder ThyssenKrupp to acquire two advanced Type-218SG submarines that will augment existing Archer-class boats and replace ageing ex-Swedish Challenger-class by 2020. Type-218SG, designed for littoral, shallow sea operations, is a customized design that will integrate features from Type 214 and possibly Type-216 ‘concept submarine’ fitted with fuel-cell AIP system.

Strategic Ramifications

Over the past decade, the operational utility of submarines in East Asia has widened: from anti-submarine warfare to force protection such as close submarine escort missions, intelligence surveillance, and reconnaissance (ISR), support of Special Forces, and other complementary deterrence and defensive tasks supporting territorial defense.  At the same time, the introduction of submarine-launched anti-ship and land-attack cruise missiles, anti-submarine sensors and weapons, as well as air independent propulsion systems have increased their stealth capacity to remain undetected  shortened their target-identification-and-attack cycle, and ultimately, improved their flexibility, mobility, endurance, reach, and lethality.

For smaller, defensively oriented navies in East and Southeast Asia, these attributes enable “sea-denial” capabilities aimed at preventing an opponent from using the sea, rather than providing a degree of sea control to use the sea for own power projection. Submarines will therefore become an increasingly valuable strategic asset in the region, particularly with installed AIP systems. The key difference, however, will be in the experience, training, and skill set of their operators.

U.S. delivering refurbished F-16s to Indonesia

The first three of 24 mothballed F-16s of the U.S. Air Force have been refurbished for Indonesia.

By Richard Tomkins   |   July 14, 2014 at 1:48 PM   | 

HILL AIR FORCE BASE, Utah, July 14 (UPI) --The U.S. government is well on its way to refurbishing and modernizing two dozen F-16 Fighting Falcon jet fighters for Indonesia.

The first three of the 24 planes refurbished under a 2011 contract were being delivered to the Asian country Monday (July 14). The remainder will be delivered by the end of 2015.

"This F-16 program currently stands as the flagship program of the defense relationship between the U.S. government and Indonesia, as their fighter aircraft inventory grows by 24 American-made F-16 aircraft," Deputy Undersecretary of the Air Force, International Affairs, Maj. Frank Taravella said. "Indonesia is receiving a completely refurbished aircraft, with astounding workmanship, and improved capabilities."

The Block 25 Fighting Falcons had been in Air Force storage at the Ogden Air Logistics Complex' facility at Davis-Monthan Air Force Base in Arizona.

The Ogden Logistics Center in Utah began refurbishment there after Indonesia formally accepted a U.S. grant and committed about $670 million for the planes, the Air Force said. The bulk of the work, however, was performed at Hill Air Force Base in Utah.

A total of 15,000 man-hours were spent on each plane to upgrade the avionics, overhaul wings, landing gear, and other components.

Reports that Putin flew similar route as MH17, presidential airport says 'hasn't overflown Ukraine for long time'

Published time: July 17, 2014 18:13
Edited time: July 18, 2014 00:34

Malaysian Airlines MH17 plane was travelling almost the same route as Russia’s President Vladimir Putin’s jet shortly before the crash that killed 298, Interfax news agency reports citing sources.

“I can say that Putin’s plane and the Malaysian Boeing intersected at the same point and the same echelon. That was close to Warsaw on 330-m echelon at the height of 10,100 meters. The presidential jet was there at 16:21 Moscow time and the Malaysian aircraft - 15:44 Moscow time,” a source told the news agency on condition of anonymity.

"The contours of the aircrafts are similar, linear dimensions are also very similar, as for the coloring, at a quite remote distance they are almost identical", the source added.



At the same time, there have been reports contradicting Intefax’s report that was the first and the only media source to publish the news, saying that Presidential plane was not flying over Ukraine at the same time.

As a source told Gazeta.ru online news portal, Putin’s plane does take off from Vnukovo-3 [the terminal that accepts business jets], but the president does not fly over the conflict-gripped neighboring country.

“Putin has only one jet – Board One, he does not fly other planes. This plane always takes off from Vnukovo-3, but the presidential plane have not been flying over Ukraine for a while,” the source at Vnukovo-3 terminal said.

President Putin was on his way from Brazil, where he attended the BRICS summit, to Moscow.

Flight MH17 crashed in Ukraine on a flight from Amsterdam to Kuala Lumpur, and was carrying 295 people.

The passenger Boeing-777 was expected to enter Russian airspace at 5:20pm local time, but never did, a Russian aviation industry source was cited by Reuters.

“The plane crashed 60km away from the border, the plane had an emergency beacon,” ITAR-TASS cited its source.

Thailand raises defence budget 5%

Jon Grevatt, Bangkok - IHS Jane's Defence Weekly
15 July 2014

Thailand's military government has proposed a 2015 defence budget of THB193 billion (USD6 billion), representing a 5% increase over spending in 2014. The funding represents approximately 8% of the total government expenditure during the 2015 fiscal year, which commences 1 October 2014.

The budget, announced on 15 July, has been drafted by the National Council for Peace and Order (NCPO) - Thailand's de facto cabinet led by Commander-in-Chief of the Royal Thai Army (RTA) General Prayuth Chan-ocha. It is scheduled to receive official approval in late July.

A breakdown of the defence budget has not yet been revealed by the NCPO.

Massive Procurement under Modernisation Plan

Economic growth (currently 7.2%) has enabled the Armed Forces of the Philippines to action the Defence Modernisation Programme and to also help finance the damage caused by typhoon Haiyan.

The AFP Modernisation Programme is a 15 year programme with funding already agreed covering the first 5 years.  This initial funding has resulted in the Philippines rapidly becoming one of the most active and dynamic markets in the Asia Pacific region.

Under the Modernisation Plan covering the first five years major contracts have already been placed including:

• 2 x 7300 ton Strategic Sealift Vessels (SSV’s)
  to be built by PT Pal – Indonesia
• 8 x AW109 Agusta Westland Helicopters
  – Italy/UK
• 6 x EMB 314 Super Tucano’s from Embraer
  – Brazil
• 100 x M113A2’s  - US
• 3 x Upgraded Hamilton Class Cutters – US
• 40,000 Remington MK4 Rifles for the
  Army/Marine Corps – US
• A major surveillance programme to be
  supplied by Raytheon - US

Other contracts currently under negotiation include:

• New build frigates
• Towed Howitzers
• Land based missile system
• Fighter Aircraft
• Rescue Boats
• Purchase of decommissioned frigates
• Offshore patrol vessels (OPV’s)
• Optical Sights
• Ammunition
• Ballistic Armour
• Disaster Management Equipment

SGPV-LCS Contract Formalised

Marhalim Abas July 17, 2014 Malaysia -RMN

SHAH ALAM: Boustead Heavy Industries Corporation Bhd (BHIC) announced today that its associate company, Boustead Naval Shipyard Sdn Bhd has formalised the contract for the SGPV-LCS for the Royal Malaysian Navy.

The announcement made with Bursa Malaysia:

“We refer to the announcements made on 16 December 2011 and 1 October 2013 with regard to the receipt of a letter of acceptance (“the Letter”) from the Ministry of Defence Malaysia (“MoD”) (acting on behalf of the Government of Malaysia) by Boustead Naval Shipyard Sdn Bhd (“BNS”), an associate company of BHIC, for the contract to design, construct, equip, install, commission, integrate, test and trials, and deliver six (6) units of Second Generation Patrol Vessels with Littoral Combat Ship (LCS) capability for the Royal Malaysian Navy (“the Contract”) at a contract value of RM9 billion.

The Company now wishes to announce that BNS and MoD have finalised the negotiations and signed a formal Contract on 17 July 2014.

There were no differences between the substance of the formal Contract and the Letter.

This announcement dated 17 July 2014.”

With the formalisation of the contract, the work on the first ship is expected to start by early next year as announced much earlier. As the ceiling price remained at RM9 billion, I assumed the SSM and SAM chosen are the Exocet Block III and MICA, both from MBDA.

Yes, the Navy had wanted the NSM and ESSM but as I had posted earlier the systems chosen was fait accompli once the Gowind design made the final cut. I was told that changing the SSM and SAM would have been made if the costs were not higher or similar to the ones chosen already.

Anyhow, lets hope the first ship will be commissioned within four years time as stipulated by the contract although RMN had not been very lucky with its new builds.

Yes, I know I should wait before making any assumptions on this issue but I still prefer to think otherwise. And I will still called the ships the Laksamana class frigates. Why? Because I can.