The Indonesian Navy is undergoing a massive modernisation program aimed at transforming its capabilities to meet evolving security challenges. Rather than being driven by a single defining factor, this effort reflects a convergence of strategic, operational, and geopolitical pressures. Together, these influences are shaping a comprehensive and sustained push to enhance naval readiness, technological sophistication, and overall maritime defence posture.
Geography & Economy
The first driver for Indonesia’s push for naval modernisation is geography. As the world’s largest archipelagic state, spanning more than 17,000 islands and sitting astride some of the busiest maritime chokepoints on Earth, Indonesia faces unique security challenges.
The Indonesian archipelago links the Indian Ocean to the South China Sea and the Pacific Ocean, and lies along vital sea lanes such as the Malacca, Sunda, and Lombok Straits, critical maritime arteries through which global trade flows. The Straits of Malacca alone carries $3.5 trillion worth of trade yearly, while an average of 2,000 ships per month transits through the Sunda Straits, located between Java and Sumatra.
Therefore, any disruption in these waters would not only affect Indonesia’s economy but also reverberate across the global supply chain, as demonstrated by the ongoing military conflict in the Middle East.
Furthermore, Indonesia needs to protect its maritime resources. Its maritime resources, from fisheries to offshore energy reserves, are vast but vulnerable. Illegal, unreported, and unregulated (IUU) fishing alone costs the country huge financial losses annually. Between 2020 and 2025, Indonesia suffered losses of more than US$800 million to IUU fishing.
Geopolitical Development
Second, geopolitical developments have imparted greater urgency to this issue. The Indo-Pacific region has emerged as a central arena of intensifying strategic competition, marked by the expanding military presence and activities of both major and middle powers.
Within this context, concerns have arisen that Indonesia’s geostrategic position could expose it to the risk of entanglement in a conflict involving external actors. Indonesian defence officials have accordingly cautioned that the country may be inadvertently drawn into great-power confrontation, particularly in scenarios where opposing military forces operate or engage within or in close proximity to the Indonesian archipelago.
The Major Powers
Third, the major powers are another factor influencing Jakarta’s security assessments. The lingering presence of American military forces nearby is one concern. While it seems on the surface that defence relations between Indonesia and the United States are warm, there are underlying suspicions within the Jakarta elite regarding American intentions. Suspicions persist within the Indonesian security community that US Marines in Darwin, backed by Australia, could intervene on the side of the West Papuan insurgents, which may lead to the province’s separation from Indonesia in the future.
Historical context remains critical to understanding the formation and persistence of these distrustful perceptions against the United States. During the Cold War, great-power competition was manifested directly within its domestic sphere. This was exemplified by the capture of a Central Intelligence Agency (CIA) operative in 1958, as well as by the material support extended by the United States to anti-government rebels during the formative period of Indonesia’s independence.
Such episodes have become embedded within Indonesia’s strategic and political memory and continue to inform defence planners’ threat perceptions and foreign policy orientations. Indonesian officials frequently invoke historical experience when articulating their views of the United States, underscoring a lingering distrust rooted in perceived violations of sovereignty. As one senior Indonesian diplomat privately shared his opinion recently, “China did not try to break Indonesia apart, but the United States did”.
While there are little concerns about China’s intrusion into Indonesia’s Economic Exclusive Zone (EEZ), Jakarta guarded the security of its water jealously. The discovery of unmanned underwater vehicle (UUV) believed to be of a Chinese origin in the Strait of Lombok, a critical waterway within the Indonesian archipelago, would likely further influence Jakarta on the need to strengthen the Indonesian navy.
Intra-Regional Concerns
Fourth, the intra-regional arms race is another factor to be considered. Several of Indonesia’s neighbours are expanding the capabilities of their navies – Manila is acquiring additional new frigates from South Korea, while Singapore is building ten new warships along with newer and modern submarines from Germany.
In fact, a senior Indonesian official privately shared in 2025 that one reason for Jakarta to acquire a second hand aircraft carrier was due to Singapore’s new Multi-Role Combat Vessel (MRCV) class of warships capable of operating as a mothership for Unmanned Surface Vehicles (USVs), Unmanned Aerial Vehicles (UAVs), and Autonomous Underwater Vehicles (AUVs).
Thus, there were plans that the new second-hand aircraft carrier for the Indonesian Navy could operate as a drone carrier given that Indonesia would procure 60 Turkish built Bayraktar TB-3 drones. These drones are suitable to operate from an aircraft carrier, thus giving the Indonesian Navy to some extent a power projection capability.
Obsolete Fleet
Lastly, the modernisation programme is critical as the Indonesian navy largely depends on an ageing and obsolescent fleet. For years, Indonesia’s naval capabilities has lagged behind its strategic needs. A fleet composed chiefly of aging vessels, with about 40 per cent of its ocean-going fleet over 30 years old, has limited surveillance capacity, and gaps in maritime domain awareness, leaving its waters vulnerable to illegal fishing, piracy, and incursions by foreign vessels.
The operational readiness of aging equipment has come under increasing scrutiny, particularly in the aftermath of serious accidents. In 2021, the 44-year-old submarine KRI Nanggala 402 tragically sank, resulting in the loss of all 53 crew members. This incident underscored the risks associated with operating legacy platforms beyond their intended service life. More broadly, the disaster reflects the significant challenges facing the Indonesian Navy in sustaining a credible and effective undersea warfare capability.
Conclusion
Indonesia’s naval modernisation is ultimately a strategic necessity shaped by a confluence of many factors such as geography, geo-politics development and ambition the need to replace obsolete fleet. As the world’s largest archipelagic state, the country must secure vast sea lanes, protect critical resources, and uphold sovereignty across widely dispersed islands. At the same time, aging platforms, evolving security threats, and intensifying regional competition have exposed gaps in capability and readiness.
Modernisation therefore reflects not only a response to immediate operational challenges, but also a forward-looking effort to build a more resilient, technologically advanced force. By investing in new assets, Indonesia is positioning its navy to operate effectively in a complex security environment. In doing so, it seeks to safeguard national interests while contributing to broader stability and security in Southeast Asia.
