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WORLD · SATIRE · FALSE ECONOMY

Indonesia Receives a Free Aircraft Carrier With a Refit Bill of Up to $900m, None of Which Is the Ship's

The 41-year-old former ITS Giuseppe Garibaldi arrived in Jakarta on Friday as a gift from Italy, which also avoids the cost of scrapping it. An Indonesian MP has put the retrofit alone at about $900m.

Editorial cartoon illustration: A very large, elderly grey aircraft carrier tied up at a tropical naval quay under a bright sky, with rows of sailors standing to attention on the dock and palm trees behind them. One Italian official in a summer suit stands at the end of the gangway, arms spread wide and beaming, having just handed something over. A single enormous red gift ribbon is tied around the middle of the ship's hull.
Editorial illustration by The Questionable Times. Based on the verified event; scene is illustrative.

Indonesia has received its first aircraft carrier, a former Italian warship that the government says will strengthen the archipelagic nation's maritime security and disaster response capabilities.

The 41-year-old former ITS Giuseppe Garibaldi, which can operate short take-off and vertical landing aircraft and helicopters, arrived on Friday morning at a naval base in North Jakarta's Tanjung Priok port, where it was welcomed with a military ceremony.

Italy agreed in March to give the carrier, which was retired in 2024, to Indonesia, in a move aimed at broadening Italy's defence engagement with the south-east Asian country. Italy is seeking deals on submarines and aircraft. Gifting the carrier also saves Italy the cost of decommissioning the ship.

The transfer makes Indonesia only the second country in south-east Asia with a carrier in its fleet. The first was Thailand's HTMS Chakri Naruebet, commissioned in 1997 after being procured from Spain along with carrier-capable AV-8S Matador jump-jets.

The vessel will be formally commissioned into the Indonesian Navy next week as the KRI Gajah Mada, named after the 14th-century Majapahit-era military leader whose vision of a unified archipelago has made him one of Indonesia's most celebrated historical figures.

Unlike major naval powers, which use carriers to operate fighter aircraft far from home, Indonesia describes the ship as a mobile command centre and support hub for helicopters, drones and maritime operations across its thousands of islands.

Speaking at a disaster management meeting earlier this month, President Prabowo Subianto said the vessel would help authorities tackle the forest and peatland fires that regularly blanket parts of south-east Asia with hazardous haze.

He said the carrier could accommodate up to 10 medium-sized helicopters, including aircraft with capabilities comparable to the Black Hawk and the Mi-17, and could carry large quantities of water to areas with large numbers of fire hotspots. He also outlined plans to fly drones from the ship and to use it as a platform that could be moved quickly to help after natural disasters, which are common in a country sitting on the Pacific "Ring of Fire".

The acquisition has prompted debate among defence analysts, economists and opposition politicians, who question whether Indonesia needs a carrier at all and whether the government should be spending on refurbishing and operating an ageing ship while facing fiscal pressure at home.

Indonesia's finance ministry approved $450m in financing for the aircraft carrier programme in 2025. Some lawmakers have warned that the overall bill could be far higher. TB Hasanuddin, a member of parliament's Commission I, said the cost of retrofitting the carrier alone could reach 16tn rupiah, about $900m.

Operating a carrier is expensive in any navy, and experts have questioned whether the necessity has been fully worked through. Economists have warned of slowing growth and weaker state revenues, which has brought closer scrutiny of large government spending projects.

The arithmetic here deserves more respect than it has been given. The ship was a gift. Its purchase price was zero. Whatever the retrofit costs, it cannot be a cost of acquiring the carrier, because the carrier was acquired for nothing.

This leaves the figure of about $900m attached to no asset at all. It is a cost of helicopters, water tanks, fire hotspots and the Ring of Fire, none of which Indonesia bought this week either. On a strict reading of the receipts, the Indonesian Navy has expanded by one aircraft carrier at a unit price that no other navy in the world has matched.

Italy's position is better still. By transferring the Garibaldi it has avoided the cost of scrapping it, which means both countries have recorded an improvement on the same hull. Our analysts note that this is the rarest event in defence procurement: a warship that made money going in both directions.

The implication for naval policy is straightforward. If a carrier acquired as a gift costs nothing, the cheapest possible fleet is one assembled entirely from gifts, and the most efficient naval power of all is the one that has just given its carrier away.

The Department of Unnecessary Research has written to both ministries recommending the obvious next step. A navy that owns nothing cannot be outspent.

WHAT THE FREE CARRIER COSTSQUESTIONABLE ANALYTICS
0Purchase price
502025 programme financing
100Retrofit estimate
Illustrative newsroom graphic, scaled to the largest figure. The carrier was a gift; Indonesia's finance ministry approved $450m in financing for the programme in 2025; an MP has put the retrofit alone at about $900m.
THE BORING FACT

Indonesia received its first aircraft carrier, the 41-year-old former ITS Giuseppe Garibaldi, as a gift from Italy. Indonesia's finance ministry approved $450m in financing for the programme in 2025, and a member of parliament's Commission I has said the retrofit alone could reach 16tn rupiah, about $900m.

Source: The Guardian
OUR PROFESSIONAL CONCLUSION

Because the carrier was a gift, its purchase price was zero, so the $900m retrofit is not a cost of the ship at all, and the most efficient navy in the world is the one that has just given its carrier away.

REALITY CHECK · FALSE ECONOMY

Unfortunately, there's a small problem.

A purchase price of zero does not make an asset free: acquisition cost, refit and decades of operating cost are all costs of owning the ship, and Italy's avoided scrapping bill is a saving on disposal, not a profit. Setting the price tag to nothing simply moves the money somewhere it cannot be counted.

THE BS DETECTOR

Where did reality end?

Tap the paragraph where this story stopped being true. Then see where everyone else bailed.

 

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