Indonesia has embarked on an active modernisation effort to strengthen the Tentera Nasional Indonesia - Angkatan Laut (TNI-AL). High priority purchases include new surface vessels and submarines for the navy. Most recently, Indonesia announced its intention to purchase six modern diesel submarines from Russia comprising four Kilo class and two Amur 950, Lada class, Russian submarines. The TNI-AL has drawn up a development blueprint that will see the force significantly increasing its ability to operate in its territorial waters by developing a "green water" navy.

The key drivers for the TNI-AL's modernisation efforts are securing the territorial waters of Indonesia, protecting its Exclusive Economic Zone, Search & Rescue and Anti-Submarine Warfare.

Indonesia is also facing a shortage of surface and coastal patrol vessels. Aside from vessels for local presence, the Indonesian Navy also needs radar and reconnaissance equipment needed for overall situational awareness. To shore up its capabilities, Indonesia is also planning to purchase Searcher Mark-II unmanned aerial vehicles (UAVs) from Israel.

Indonesia has also purchased four SIGMA-class corvettes equipped with a comprehensive combat and communication suit fitted on a spacious platform accommodating 80 persons, a large helicopter deck and a twin-screw diesel propulsion. The superior propulsion and sea keeping capabilities make the SIGMA class Corvettes perfectly suited for maritime search and patrol operations in the Indonesian territorial waters.

Another important market is Thailand, a country that also has a large body of water to patrol. The vessel operators in Thailand comprise the Royal Thai Navy and the Royal Thai Marines.

The Thai navy was the first in the region to operate an aircraft carrier - the small V/STOL 11,400-tonne carrier Chakri Narubet built by Spain's Bazan shipyard and has an on-going programme to replace its ageing vessels. With Malaysia, Singapore and Indonesia eyeing or operating submarines, the Royal Thai Navy is also seeking to acquire submarines from either Israel or Russia. Elsewhere in the region, Philippines is another country that offers a lot of opportunities for the sale of new equiment and modernisation of existing assets.

Although these modernisation programmes are hampered by the lack of funding from the government, there are many opportunities available for the supply of peripheral items related to the modernisation of the technology and among the programmes that have been implemented is the modernisation of the Jacinto Class vessel by the UK firm QinetiQ. Several other vessels have also been purchased for coast patrols, but the Philippines Navy has listed maritime surveillance capability at the top of its wish list.