Fincantieri and PT PAL Sign MoU to Modernize Indonesia’s First Carrier, KRI Sriwijaya
Quick take: Italian shipbuilder Fincantieri and Indonesian state shipyard PT PAL signed a memorandum of understanding in Jakarta on September 28, 2026, establishing a cooperation framework for the future modernization of KRI Sriwijaya, the Indonesian Navy’s first aircraft carrier and the former Italian carrier Giuseppe Garibaldi.
Signing Ceremony in Jakarta
The MoU was signed by Mauro Manzini, Vice President Sales of Fincantieri’s Naval Vessels Division, and Djenod Kaharuddin, President Director of PT PAL Indonesia. Both parties said they would jointly define the scope of the modernization work and the division of responsibilities.
Fincantieri CEO Pierroberto Folgiero said the agreement reflects the strong relationship between Italy and Indonesia in the naval and defense sectors, describing Southeast Asia as a central market in the company’s long-term regional ambitions.
New-Generation Systems for a 40-Year-Old Hull
Renamed KRI Sriwijaya, the vessel entered service in 1985 as an aircraft-carrying cruiser built at Fincantieri’s Monfalcone shipyard for the Italian Navy. It reached Indonesian waters in early September, becoming the country’s first aircraft carrier.
The modernization is expected to involve a thorough condition assessment of the 40-year-old ship, identification of obsolete technologies, and integration of the existing platform with new sensor, propulsion and weapon systems — effectively fitting an older-generation hull with modern combat capability.
Indonesia’s Multi-Sourced Procurement Strategy
While cooperating with Italy on the carrier project, Indonesia has also turned to Turkish suppliers for its air force and unmanned aircraft inventory, having previously signed an export deal for Baykar’s KIZILELMA unmanned fighter and held talks over TUSAŞ’s KAAN fighter. The KRI Sriwijaya agreement thus stands as another example of Jakarta’s strategy of sourcing platforms from multiple countries rather than relying on a single supplier.
For the Indonesian Navy, the agreement is a concrete example of an approach that brings an existing platform into service through modernization rather than building a new carrier from scratch — a route that is typically cheaper and faster than launching a new carrier program.
Why It Matters
The MoU is not yet a binding modernization contract; the process of clarifying scope and responsibilities is expected to continue in the coming period. Still, the agreement confirms Fincantieri’s strategy of also taking on lifecycle support for platforms it sells outside Italy.
For Indonesia, KRI Sriwijaya is more than a symbolic gain in the regional naval balance — it will also be a test of the country’s capacity to modernize and integrate platforms sourced from different suppliers at the same time.
Sources
- Naval News, “Fincantieri and PT PAL Indonesia sign agreement for the modernization of ex-Giuseppe Garibaldi,” September 28, 2026, navalnews.com — used for the signing ceremony, the parties involved and the scope of the MoU.
- ANTARA News, “PT PAL prepares upgrades for aircraft carrier Giuseppe Garibaldi,” September 28, 2026, en.antaranews.com — used for statements from the Indonesian side.
- Naval Today, “Fincantieri, PT PAL to modernize former Italian aircraft carrier,” September 28, 2026, navaltoday.com — used for the ship’s technical background and confirmation of the modernization scope.
