Japan Proposes New Frigate Deal to Indonesia to Counter South China Sea Tensions.

According to information published by the Japan News on January 1, 2025, the Japanese government has decided to reintroduce a proposal for joint development of Maritime Self-Defense Force (MSDF) frigates with Indonesia, aiming to enhance security collaboration with nations in East Asia.
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During a photo exercise for the Integrated Battle Problem (IBP), the Mogami-class frigate JS Kumano (FFM-2) from the Japanese Maritime Self-Defense Force maneuvered alongside the unmanned surface vessels Ranger and Mariner. (Picture source: US DoD)

Defense Minister Gen Nakatani is set to visit Indonesia from January 5 to 8, where he will present the proposal to his Indonesian counterpart, Defense Minister Sjafrie Sjamsoeddin. This visit seeks to capitalize on a new political dynamic under Indonesia’s recently inaugurated President Prabowo Subianto, who is familiar with Japan-Indonesia defense negotiations from his tenure as defense minister. Nakatani’s discussions are expected to lay the groundwork for a subsequent visit by Japanese Prime Minister Shigeru Ishiba later in January, potentially leading to a high-level summit between the two nations.

Japan’s proposal includes the joint development of frigates tailored to MSDF specifications. This initiative aligns with Indonesia’s strategic interests, as the country has previously shown interest in advanced maritime defense capabilities, including submarines. However, earlier talks under former President Joko Widodo’s administration stalled due to financial constraints linked to Indonesia’s ambitious capital relocation project.

President Prabowo’s administration marks a renewed opportunity to revisit these discussions. Indonesia’s increasing concern over China’s assertive activities in the South China Sea, despite its strong economic ties with Beijing, adds urgency to Jakarta’s interest in diversifying its defense partnerships.

Japan’s defense export policies, governed by the Three Principles on Transfer of Defense Equipment and Technology, currently limit the export of finished military assets to non-combat applications such as surveillance and minesweeping. Consequently, Japan is pursuing joint development arrangements as a more feasible pathway to transfer advanced defense technology to Indonesia. This approach aligns with Japan’s revised National Security Strategy of 2022, which promotes defense exports through public-private collaboration to enhance ties with like-minded nations and strengthen its defense industrial base.

The potential joint development of frigates could enhance strategic cooperation between Japan and Indonesia, particularly in maritime security. This collaboration would be a pivotal step in countering security challenges in the Indo-Pacific region, including China’s maritime expansion.

Indonesia’s partnership with Japan in frigate development mirrors Tokyo’s ongoing efforts to secure defense cooperation with other allies. For instance, Japan has proposed a joint frigate development project to Australia based on the Mogami-class design. The Australian government has shortlisted Japan and Germany as finalists for the initiative, with a decision expected in the second half of 2025.