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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.
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