DSME executives with Indonesian navy personnel and representatives from PT PAL launching a Nagapasa submarine
On December 20, 2011 Daewoo Shipbuilding & Marine Engineering (DSME) signed a contract worth $ 1.08 billion to build three DSME 1400 submarines for the Indonesian fleet.
In April 2019 Indonesia signed a US$1.02 billion contract for a further three 1,400-ton submarines (DSME 1400 type) from South Korea's Daewoo Shipbuilding & Marine Engineering (DSME).
The Export-Import Bank of Korea (KEXIM) is set to loan $1.2 billion to the Indonesian government in order to fund construction of the three Chang Bogo-class submarines, locally known as Nagapasa-class submarines.
The Ministry of Finance of Republic of Indonesia will receive the loan and finance PT-PAL, Indonesia's state-owned shipbuilder, which will construct the three new submarines.
Indonesian people thus pay for the submarines twice: once in a payment to DSME / Hanwha, and again in interest to the Export-Import Bank of Korea.
A DSME / Hanwha submarine on delivery in 2017