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Turkish President Recep Tayyip Erdogan announced that Ankara has finalized a landmark agreement to export 48 domestically produced fifth-generation fighter jets to Indonesia in a $10 billion deal.

“As part of the agreement signed with our friendly and brotherly country, Indonesia, 48 Kaan (fighter jets) will be produced in Turkey and exported to Indonesia,” Erdogan wrote on X, confirming the long-rumored deal.

According to Turkish media reports, the contract includes the production and delivery of 48 Kaan fighter aircraft over 10 years. Turkish broadcasters also reported that the deal encompasses a technology transfer component, a key condition that aligns with Jakarta’s long-term ambition to develop its indigenous defense manufacturing capabilities.

“Indonesia’s local capabilities will also be utilized in the production of Kaan jets, the Turkish President added, hinting at an element of co-production or assembly in Indonesia, although specific details were not disclosed.

A milestone for Turkiye’s defense industry

The announcement marks a major milestone for Turkey’s state-owned Turkish Aerospace Industries (TAI), which manufactures the Kaan jet. The aircraft is set to become Turkiye’s first domestically developed fifth-generation fighter and completed its maiden flight in February 2024, representing a bold leap forward in Ankara’s efforts to become self-reliant in critical defense technologies.

Initially equipped with a U.S.-supplied F-16 engine type for testing purposes, the Kaan is expected to transition to a locally produced engine as part of Turkiye’s long-term vision to reduce dependency on foreign components in sensitive defense platforms.

Millî muharip uçağımız KAAN ile ilgili çok önemli ve güzel bir gelişmeyi milletimle paylaşmak istiyorum…

Dost ve kardeş Endonezya ile imzaladığımız anlaşma çerçevesinde 48 adet KAAN, Türkiye’de üretilerek Endonezya’ya ihraç edilecek.… pic.twitter.com/D9wZ33wzgz

— Recep Tayyip Erdoğan (@RTErdogan) June 11, 2025

The Kaan fighter jet is designed to meet a wide spectrum of modern battlefield needs, including stealth capabilities, supersonic speeds, advanced avionics, and compatibility with a range of weapons systems. It is viewed not only as a strategic alternative to U.S. and European aircraft but also as a showcase of Turkiye’s growing defense autonomy.

According to official data, Turkiye’s defense industry exports hit a record $7.1 billion in 2024, up from $5.5 billion the previous year. The Kaan deal alone is worth nearly 1.5 times that annual figure, underscoring the jet’s significance as an export commodity.

Indonesia’s strategic calculus

Indonesia’s decision to purchase the Kaan jets aligns with its long-standing ambition to modernize its aging air force, which currently includes older-generation U.S.-made F-16s and Russian Su-27 and Su-30 fighters. In recent years, Indonesia has been actively exploring new procurement options to diversify its supplier base and reduce dependence on any single country.

The Southeast Asian country has previously attempted joint ventures, such as its participation in South Korea’s KF-21 Boramae project, though delays and budget constraints have limited progress. The Kaan deal offers Indonesia a fresh opportunity to co-develop next-generation airpower capabilities while also acquiring ready-made, combat-ready aircraft.

The inclusion of a technology transfer element, allowing Indonesia to participate in certain stages of production, appears to have been a key factor in Jakarta’s decision to sign the deal. It supports President Joko Widodo’s broader goal of strengthening Indonesia’s domestic defense manufacturing base, which has struggled to keep pace with regional security demands.

Strengthening bilateral ties

The agreement is also a reflection of warming diplomatic and economic relations between Ankara and Jakarta. Both countries, which are G20 economies and members of the Organization of Islamic Cooperation (OIC), have sought to position themselves as emerging powers in their respective regions and partners on issues ranging from trade to counterterrorism.

The deepening defense cooperation complements an ongoing trend of closer ties. In recent years, the two countries have expanded collaborations in education, culture, and infrastructure development, and have maintained mutual support in multilateral forums such as the United Nations and the D-8 Organization for Economic Cooperation.

This strategic alignment may also have a geopolitical dimension. As Turkey seeks to expand its influence in the Indo-Pacific and Indonesia seeks diversified defense ties amid rising regional tensions in the South China Sea, the deal offers mutual benefits that extend beyond economics.

The Kaan deal with Indonesia is likely to set a precedent for future defense exports, particularly to countries looking for alternatives to traditional suppliers in the U.S., Europe, or Russia. Turkiye’s ability to offer advanced platforms such as the Kaan, along with its combat-proven Bayraktar TB2 and Akinci drones, positions Ankara as a rising player in the global arms market.

Already, Turkish defense firms are active in Africa, Central Asia, the Middle East, and Southeast Asia. With the Kaan fighter jet now entering the export stage, Turkiye’s ambitions appear to be taking flight, quite literally.

Analysts suggest that if Kaan meets its performance targets in the field and secures necessary international certifications, additional orders may follow from other countries seeking cost-effective fifth-generation alternatives.

Meanwhile, for Indonesia, the acquisition reflects both an urgent need to modernize its forces and a willingness to diversify its military partnerships. It is a high-stakes investment, not only in terms of capital but also in terms of long-term strategic alignment.

The $10 billion Kaan fighter jet deal between Turkiye and Indonesia is more than a commercial transaction; it is a strategic convergence of two ambitious, emerging powers. For Turkiye, it cements Kaan’s place as a flagship export platform and demonstrates Ankara’s capability to compete in the elite club of countries that design and build fifth-generation fighters. For Indonesia, it represents a bold step in modernizing its air force and developing homegrown defense capabilities through technology transfer.