A risky gambit: Should Indonesia host US navy’s MRO operations?
Indonesia at Melbourne – University of Melbourne
“In August, Indonesia’s largest maritime manufacturing company, the state-owned PT PAL, hosted a visit for US Congress Staffers from New York, California, South Carolina, West Virginia, Nevada, and Washington. The meeting was aimed at exploring and strengthening cooperation between Indonesia and the United States, particularly in the maritime defence and industries sector. At the meeting, PT PAL stated that they were ready to provide maintenance, repair, and overhaul (MRO) services for US Navy vessels operating in the Indo-Pacific region.”
“During the tariff negotiations with the US, an article by the IDN Times leaked that increasing maritime security cooperation was one of Indonesia’s offers in its bid to win tariffs reductions from 32 to 19 percent. Although the final statement released by the White House does not specifically mention maritime security as part of the deal, if the US and Indonesia increase their maritime security cooperation in the years, the MRO project would be an effective way to start.”
“However, there are also at least three significant risks…”
Source: Indonesia at Melbourne