South Korea's Daewoo Shipbuilding & Maring Engineering (DSME) has practically won a submarine order from Indonesia.
The Indonesian submarine deal would record Korean defense industry's biggest project to the tune of about $1.08bn.
Industry sources said that Taufiq Kiemas, president of Indonesian Convention Nationale, mentioned DSME was practically selected as preferred bidder, when he paid a courtesy call on Korea's prime minister Kim Hwang-Sik.
DSME made a bid for the submarine newbuilding project, which will be used for Indonesian navy, along with shipbuilders from Germany, Russia, and France.
As soon as reviewing reports from the navy, The Ministry of National Defense will confirm preferred bidder with approval of the secretary of Defense.
Once the contract is sealed, DSME would export Korean navy's main submarines. Three 209 class (1200t) submarines amount to KRW 1.14trn ($1.08bn), nearing South Korean entire defense industry exports of $1.19bn last year.
Two ships would be constructed in Korea and the other one in Indonesia, by forwarding components to Indonesia.