PT PAL, an Indonesian shipbuilding company, signed a Teaming Agreement Maintenance, Repair, and Overhaul (TA MRO) with BAE Systems BOFORS AB, Thursday 27 May 2021. This collaboration was facilitated by the Indonesian Embassy in Stockholm.
The signing of the TA MRO was carried out virtually by the President Director of PT PAL Indonesia, Kaharuddin Djenod, and the CEO of BAE Systems BOFORS AB, Lena Gillstrom, witnessed by the Indonesian Ambassador to the Kingdom of Sweden and the Republic of Latvia, Kamapradipta Isnomo.
The implementation of TA MRO provides easy access for repair and maintenance (MRO) of Indonesian warships and patrol boats using BOFORS technology no longer need to be done in Sweden but can be done by PT PAL Indonesia.
The MRO cooperation between the two companies also contains elements of technology transfer and knowledge transfer, where BOFORS and PT PAL experts and engineers will cooperate in the MRO field.The Indonesian Embassy in Stockholm intensively oversees the TA MRO negotiation process in order to comply with national regulations and BOFORS has binding partners in Indonesia.
The initiation of the agreement began with BOFORS AB’s intention at the end of 2020 to have a Teaming Agreement with PT PAL in the MRO sector.
“This TA MRO has the potential to pioneer progress in the field of defense cooperation between Indonesia and Sweden. The Indonesian Embassy in Stockholm will continue to prioritize this form of cooperation in enhancing bilateral cooperation between the two countries,” Ambassador Kamapradipta Isnomo said in a press statement at the Indonesian Embassy in Stockholm.
“This signing is a milestone for BOFORS AB and Indonesia through PT PAL and with this legal umbrella both parties can cooperate in the MRO field,” said Gillstrom.
The implementation of TA MRO provides easy access for repair and maintenance (MRO) of Indonesian warships and patrol vessels using BOFORS technology. This process no longer needs to be carried out in Sweden but can be carried out by PT PAL Indonesia.
The cooperation between Indonesia and BOFORS has been going on since 1959 through the signing of arms purchase contracts. In the period 1970-1990, this company has procured approximately 80 weapons systems for Indonesia. In 2019, BOFORS started a new contract in collaboration with PT PAL for the KCR-60 class boats’ 57 Mk3 guns.
BAE Systems Bofors
BAE Systems Bofors is a part of BAE Systems’ Weapon Systems business which has operations in the United States, Sweden and the U.K. Supporting customers around the globe, Weapon Systems offers naval weapons, munitions and energetics as well as artillery products and services. The BAE Systems Bofors organization produces artillery and gun systems for land and naval applications. These include air defence gun systems and platform-mounted launch systems.
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