Indonesia has reportedly placed an order with South Korea for the construction of three submarines.

Indonesian media on Wednesday quoted Indonesia’s Defense Minister Purnomo Yusgiantoro as saying that the two sides already signed the contract. The agreement stipulates that South Korea will transfer its submarine production technology to Indonesia so that the submarines could be built in the Indonesian shipyards.

Under the deal, one of the three submarines will reportedly be constructed in South Korea in the presence of Indonesian experts, while the other two will be built in Indonesia.