China is reportedly offering to sell Indonesia a half-built submarine originally ordered by Thailand, and claims it will include a German-made engine if that is what Jakarta wants.

The news was reported this week by Janes, a specialist in military, national security and transport topics.

The development comes despite claims by Thailand that the problem-plagued deal to acquire the Chinese submarine is back on track.

Officials from China State Shipbuilding Corporation (CSSC) visited the Ministry of Defence in Jakarta on June 28, Janes reported on its website.

The CSSC officials assured the ministry that the offer to Indonesia would not be faced with the same types of export restrictions experienced by the Royal Thai Navy.

The original contract signed by Thailand in May 2017 stipulated a German-made diesel engine. But the plan changed after Germany refused to sell the engine to China as it is designated a military/defence item and subject to a European Union embargo.

Beijing has been trying to persuade Thailand to accept a Chinese-built generator in place of the German engine.

At the meeting in Jakarta, the Chinese said Indonesia could use an engine from a vendor of its choice, including Germany-based MTU, into the vessel, Janes reported.

China Shipbuilding & Offshore International Co (CSOC) was originally contracted in 2017 to build the submarine for 13.5 billion baht under a deal with Thailand.

Construction was reportedly half finished when it was delayed due to the Covid-19 pandemic, and then put on hold because of the engine issue.