It’s Not Just About the Jet: The Real Reason Indonesia Chose Turkey’s KAAN Plus Pro

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The Indonesian government has finalized its contract with the Turkish government and Turkish Aerospace Industries (TAI) for the procurement of 48 TAI KAAN fifth-generation fighter aircraft (FGFA) for the Indonesian Air Force (TNI-AU), marking the next-generation’s platform’s first export success and a continuation of Jakarta’s mission to modernize its air force.

The finalization of the USD $10-plus billion deal on July 28, 2025, was confirmed by high-level officials from both nations and represents a significant deepening of defense and industrial ties between Jakarta and Ankara. The contract, which also includes major technology transfer and co-production clauses, offers Indonesia to join several Southeast Asian (notably Singapore and Australia) in inducting FGFAs in the coming years.

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While the financial disagreements have been formally resolved through a new agreement, Jakarta’s extensive commitments to other foreign fighter programs cast considerable doubt on the ultimate size of its KF-21 fleet.

On the other hand, Indonesia’s domestic aerospace industry is poised to experience significant involvement in the TNI-AU KAAN program.

While the specific workshare agreements are still being detailed, the involvement of Indonesian industry, led by the state-owned aerospace firm PT Dirgantara Indonesia (PTDI), is expected to be substantial and progressive.

The collaboration is likely to unfold in several phases:

1. Component Manufacturing: Initially, Indonesian industry will likely begin by manufacturing less complex components. This could include parts such as tail assemblies, pylons, control surfaces, or landing gear components. This approach builds technical capacity and familiarity with TAI’s manufacturing standards.
2. Local Assembly: A key objective for Indonesia will be to establish a Final Assembly and Check Out (FACO) line. This would mean that a significant portion of the 48 aircraft ordered for the Indonesian Air Force (TNI-AU) would be assembled in Indonesia by Indonesian technicians, with Turkish supervision.
3. Maintenance, Repair, and Overhaul (MRO): A critical and long-term benefit for Indonesia will be the establishment of a domestic MRO hub. This would give the TNI-AU self-sufficiency in sustaining its KAAN fleet and could potentially serve other regional KAAN operators in the future, generating further revenue and expertise.
4. Systems Integration: In the long term, as Indonesian capabilities mature, PTDI could become involved in integrating specific sub-systems, particularly those of Indonesian origin, such as local communication or data-link systems.

In effect, a sizable portion of the total cost of the TNI-AU KAAN program could be reinvested back into Indonesia, supporting local jobs, integrating Indonesian producers into the wider TAI supply chain, and, potentially, drive foreign-currency gains through exports to TAI customers in other parts of the world, especially fellow KAAN customers.

This arrangement is the latest and most significant example of Turkey’s highly effective defense export strategy, which often succeeds where more traditional methods fail.