Finance

Italy's parliament backs donation of aircraft carrier to Indonesia

Published by Global Banking & Finance Review

Posted on April 28, 2026

3 min read

· Last updated: April 28, 2026

Add as preferred source on Google
Italy's parliament backs donation of aircraft carrier to Indonesia
Global Banking & Finance Awards 2026 — Call for Entries

Italy Approves Donation of Garibaldi Aircraft Carrier to Indonesia to Boost Ties

By Angelo Amante

Italy's Strategic Move: Donating the Garibaldi Aircraft Carrier

Background of the Garibaldi Aircraft Carrier

ROME, April 28 (Reuters) - Italy's parliament on Tuesday backed a government plan to donate an ageing aircraft carrier to Indonesia, a move the administration said would strengthen relations with an ally while avoiding the costly dismantling of an obsolete asset.

The 54 million euro ($63 million)-valued Garibaldi entered service in 1985, took part in various operations in the Mediterranean area and off Africa, including missions in Lebanon, Libya and Somalia, then was placed in reserve in 2024.

Reasons for Decommissioning

"Structural wear and the obsolescence of onboard systems" mean it "no longer meets current capability and operational requirements," according to a government document.

Financial and Strategic Implications

Cost Savings for Italy

A parliamentary report said transferring the carrier to Indonesia would save Italy maintenance costs estimated at around 5 million euros only for last year or the nearly 19 million euros required for dismantling.

Benefits for Indonesia

Defence officials in Jakarta say accepting the donation would be more time-efficient and cost-effective than buying a new ship, and could be useful for aid distribution in disasters, according to Indonesian media. 

Timeline for Donation

Rome aims to finalise the donation by December.

Broader Italy-Indonesia Defense Cooperation

Expanding Business and Military Ties

It is part of a broader strategy to expand business with Indonesia. Prime Minister Giorgia Meloni's government is seeking to finalise Italian submarine and aircraft sales to Indonesia worth about 1.5 billion euros, the document said.

Expert Opinions

"It is a reasonable operation. Military and industrial cooperation brings returns, including on the political front and in other economic dossiers," said Alessandro Marrone, a defence expert at Rome's Istituto Affari Internazionali.

Recent Defense Deals

Last year shipbuilder Fincantieri delivered two combat ships to the Indonesian navy under a deal worth 1.2 billion dollars.

Opposition and Criticism

Political Opposition in Italy

Opposition groups have criticised the plan.

Members of the lower house defence committee from the Five Star Movement and the Democratic party voted against it, citing a lack of information. 

Regional Concerns

Last month, the regional council in the southern Puglia region - where the Garibaldi is currently berthed - urged the government not to approve the donation and instead turn it into a museum at the port of Taranto.

Additional Information

($1 = 0.8551 euros)

(Reporting by Angelo Amante in Rome;Additional reporting by Ananda Teresia in Jakarta;Editing by Andrew Cawthorne)

Key Takeaways

  • The Italian Parliament endorsed the free transfer of the Giuseppe Garibaldi aircraft carrier, valued at about €54 million, to Indonesia, thereby avoiding up to €18.7 million in dismantling expenses; maintenance costs alone in 2025 were around €5 million. (navalnews.com)
  • Indonesia views the donation as more efficient than acquiring a new vessel and plans to use Garibaldi for disaster relief and aid operations; retrofitting costs are currently estimated at approximately Rp 7.2 trillion, pending detailed technical assessments. (asia-pacific-solidarity.net)
  • The donation aligns with broader Italy‑Indonesia defense collaboration: Italy is advancing submarine and aircraft exports worth roughly €1.5 billion, and Fincantieri has previously delivered two multipurpose combat ships under a €1.18 billion contract. (en.wikipedia.org)

References

Frequently Asked Questions

Why is Italy donating the Garibaldi aircraft carrier to Indonesia?
Italy is donating the Garibaldi aircraft carrier to Indonesia to strengthen bilateral relations and avoid costly dismantling of the obsolete ship.
What is the value of the Garibaldi aircraft carrier?
The Garibaldi aircraft carrier is valued at 54 million euros ($63 million).
How will the donation benefit Italy financially?
Italy will save an estimated 5 million euros in annual maintenance costs or nearly 19 million euros required for dismantling the carrier.
How will Indonesia use the donated aircraft carrier?
Indonesian officials say the donated carrier will be more time- and cost-effective than purchasing a new ship and could help distribute aid in disasters.
What other defence deals are being discussed between Italy and Indonesia?
Italy is negotiating submarine and aircraft sales with Indonesia worth about 1.5 billion euros and recently delivered two combat ships under a separate deal.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category