In a monumental leap for Türkiye’s defence industry and Indonesia’s strategic modernization efforts, Turkish Aerospace Industries (TAI) has inked a historic $10 billion (RM46.8 billion) agreement to supply 48 KAAN fifth-generation stealth fighter jets to Jakarta, marking the largest defence export in Türkiye’s history and placing Indonesia firmly among the vanguard of next-generation airpower in Southeast Asia.
Finalized during the International Defence Industry Fair (IDEF) 2025 in Istanbul, the multi-layered agreement with Indonesian aerospace firms PT Dirgantara Indonesia and PT Republik Aero Dirgantara is more than a traditional arms deal. It represents a full-spectrum defence-industrial collaboration—encompassing co-production, engineering integration, maintenance logistics, and advanced technology transfer. Most crucially, it makes Indonesia the first foreign customer and operator of the KAAN, Türkiye’s flagship indigenous fighter platform.
“We have signed a significant agreement with Indonesia for the KAAN project,” TAI announced on its official X platform. “The agreement covers the procurement of 48 KAAN Turkish Fighters along with cooperation in production engineering and technology sharing.”
This unprecedented procurement not only reshapes Indonesia’s defence posture but also redefines Türkiye’s trajectory as a global defence exporter. It is a bold display of Ankara’s commitment to defence self-reliance and its capacity to deliver fifth-generation combat platforms outside traditional Western defence ecosystems.
Türkiye’s Defence Industries President Haluk Görgün, who oversaw the signing ceremony, called the deal a “geopolitical and industrial milestone.”
“I am filled with gratitude to be able to witness this moment together. We are excited, and at the same time, proud,” Görgün said. “This is a defining moment for Türkiye-Indonesia defence relations.”
The agreement builds upon a government-to-government memorandum signed earlier in June 2025, laying a firm diplomatic foundation for a 120-month delivery timeline and long-term cooperation.
Under the terms, the 48 KAAN jets will be powered by Turkish-assembled engines, while Indonesia will host newly constructed production, assembly, and maintenance hubs. This not only bolsters Indonesia’s defence-industrial base but also provides Jakarta with sovereign sustainment capabilities—a key requirement for self-reliant defence operations.
The KAAN, developed by Turkish Aerospace Industries (TAI), is a direct outcome of Türkiye’s strategic pivot after being removed from the U.S. F-35 Joint Strike Fighter program in 2019 due to its acquisition of Russian S-400 air defence systems. That exclusion forced Türkiye to accelerate its indigenous fighter jet ambitions under the Milli Muharip Uçak (National Combat Aircraft) initiative.
First taking flight in February 2024, the KAAN reached an altitude of 8,000 feet and a cruising speed of 230 knots. The maiden flight was heralded across Türkiye as a national milestone—a symbol of technological resilience and a significant stride toward aerospace independence.
The KAAN is designed for multirole operations in contested airspace. Its standout features include:
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Stealth shaping and radar-absorbing materials
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Internal weapons bays for reduced radar cross-section
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Advanced data fusion and AI-assisted sensor systems
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Networked warfare capabilities
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Superior maneuverability and survivability
While the current versions use imported engines and components like ejection seats, nearly 90% of its subsystems are domestically developed—a figure expected to increase as Türkiye pushes toward complete self-reliance.
TAI aims to scale production to two aircraft per month by 2029, projecting annual revenues of $2.4 billion (RM11.2 billion) from KAAN-related sales. Full-rate mass production is set for 2028, with 20 Block-10 fighters earmarked for delivery to the Turkish Air Force that same year.
Indonesia’s selection of the KAAN represents a bold recalibration of its military trajectory. With the region’s evolving threat landscape—marked by escalating tensions in the South China Sea, assertive Chinese naval activities, and hybrid threats—Jakarta has accelerated efforts to build a cutting-edge, diversified air force.
The KAAN will significantly augment Indonesia’s capability to operate in contested airspace and conduct both deterrence and high-intensity operations. It will complement Jakarta’s existing fighter programs, most notably:
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42 Rafale fighters from France (ordered in 2022–2024, worth $8.1 billion)
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Upgrades to existing F-16C/D Block 52 and Su-27/30 Flanker platforms
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Development of a domestic aircraft industry through partnerships and offsets
The KAAN deal will serve as the bedrock for Indonesia’s future aerospace programs, potentially enabling the co-development of future upgrades and next-generation variants.
Indonesia’s entry into the fifth-generation club will not go unnoticed in Southeast Asia. For regional peers such as Malaysia, the Philippines, and Vietnam, Jakarta’s leap represents both a challenge and an opportunity. These nations may now re-evaluate their own air force modernization programs, considering new-generation alternatives amid increasing concerns about Beijing’s regional ambitions.
This deal also positions Türkiye as an emerging player in the Indo-Pacific’s security architecture—a role traditionally occupied by the U.S., France, and Russia. It illustrates how medium powers can collaborate to bypass traditional arms pipelines while maintaining high-end capability standards.
In a signal of Türkiye’s expanding strategic ambitions, a navalized version of the KAAN is also under study. The proposed carrier-based variant would operate from Türkiye’s future aircraft carrier, MUGEM (Milli Uçak Gemisi), which is currently in early development.
“If the carrier-based variant of KAAN is developed, we are coordinating with Turkish Aerospace Industries (TAI) to ensure full compatibility for takeoff and landing operations,” said Albay Ucar, Director of the Turkish Naval Design Project Office.
This variant could replicate the multi-domain capabilities of the U.S. F-35B/C or China’s J-35, enabling Türkiye to field fifth-generation fighters across land, air, and sea.
If offered for export, the navalized KAAN may also find future takers in Southeast Asia, where interest in regional aircraft carrier programs is growing—most notably in Thailand and Indonesia.
At a diplomatic level, the deal symbolizes Türkiye’s growing influence as a non-aligned defence innovator. By successfully exporting an advanced stealth fighter outside NATO or U.S. control, Ankara has demonstrated that countries can achieve top-tier capability without depending on Western or Chinese ecosystems.
This achievement dovetails with Türkiye’s broader ambitions to create a “defence innovation corridor” linking the Middle East, Central Asia, and Southeast Asia—connecting partner nations through joint development and supply chains rather than simple arms sales.
Indonesia, meanwhile, benefits from both strategic hedging and technological uplift. The KAAN program introduces high-skill jobs, aerospace research opportunities, and long-term industrial capacity-building—aligning with Indonesia’s “100-Year Vision” to become a major technological and military power by 2045.
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2025: Deal signed; technology transfer and facilities development to begin
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2026–2028: Initial integration and production systems in Indonesia established
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2028: Mass production begins in Türkiye; first Block-10 units to Turkish Air Force
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2029–2035: Deliveries to Indonesia; local maintenance and training centers operational
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2032: Türkiye expects to field over 100 KAAN fighters, becoming a major fifth-generation airpower
