Indonesia Ends F-15EX Deal, Opts for Leonardo M-346F Block 20 to Replace Aging Hawk Fleet

M-346 F Block 20

After years of uncertainty and stalled negotiations, Indonesia appears to have definitively stepped away from its plan to acquire the Boeing F-15EX Eagle II, closing the door on what would have been one of Southeast Asia’s most consequential fighter deals. At the same time, Jakarta has moved ahead with a more modest but strategically significant decision, selecting Leonardo’s M-346F Block 20 light fighter to replace its aging fleet of BAE Systems Hawk aircraft and advance the modernization of the Indonesian Air Force (TNI-AU).

The twin developments, confirmed during the Singapore Airshow in early February 2026, highlight both the ambition and the constraints shaping Indonesia’s defense procurement strategy. While the country continues to pursue advanced, high-end combat aircraft from multiple partners, financial realities, industrial considerations, and shifting regional priorities are clearly influencing which programs move forward and which quietly fall away.

On the opening day of the Singapore Airshow, Feb. 3, 2026, Boeing confirmed that Indonesia will not proceed with the acquisition of the F-15EX Eagle II. Speaking to reporters, Bernd Peters, Boeing Defense’s vice president of business development and strategy, acknowledged that the long-discussed deal had effectively come to an end.

“In terms of our partnership with Indonesia, it is no longer an active campaign for us,” Peters said, drawing a clear line under a program that had lingered in limbo for several years.

The confirmation marks the formal collapse of a deal that once promised to make Indonesia the first export customer for the Eagle II, the most advanced iteration of the venerable F-15 family. Indonesia and Boeing signed a Memorandum of Understanding (MoU) on Aug. 21, 2023, aimed at finalizing the sale of 24 F-15EX aircraft. That agreement followed a 2022 decision by the U.S. Defense Security Cooperation Agency (DSCA) to approve a possible Foreign Military Sale to Indonesia for up to 36 F-15EXs, a package valued at tens of billions of dollars once weapons, training, and sustainment were included.

At the time, the acquisition was framed as a cornerstone of Indonesia’s plan to build a state-of-the-art, multi-tier fighter fleet. The F-15EX was expected to operate alongside Dassault Aviation’s Rafale and South Korea’s KF-21 Boramae, replacing older platforms and dramatically expanding the TNI-AU’s long-range strike, air superiority, and deterrence capabilities.

However, despite the MoU and the DSCA approval, the deal never progressed to a binding acquisition contract. Since 2023, there has been little visible movement toward formalization, and by early 2026 the program had effectively stalled.

Had it gone ahead, the Indonesian aircraft would have been delivered in a bespoke export configuration known as the F-15IND. While Boeing and Indonesian officials never released full details of the variant, it was understood that some U.S.-only systems would have been removed or downgraded, in line with export restrictions, while still retaining a formidable suite of sensors and survivability equipment.

M-346 FA
M-346 light fighter

According to the DSCA notification, the proposed F-15IND package included the AN/APG-82(v)1 Active Electronically Scanned Array (AESA) radar, the AN/ALQ-250 Eagle Passive Active Warning Survivability System (EPAWSS), Advanced Display Core Processor II digital computers, and Joint Helmet Mounted Cueing Systems for both the pilot and Weapon Systems Officer. The aircraft would also have been equipped with AN/AAQ-13 LANTIRN navigation pods, AN/AAQ-33 Sniper Advanced Targeting Pods, MS-110 reconnaissance pods, and an infrared search and track capability listed as the AN/ASG-34 IRST International, possibly integrated into the Sniper pod’s pylon.

Such a configuration would have given Indonesia one of the most capable non-stealth fighter fleets in the region. Yet the scale and cost of the program, combined with Jakarta’s parallel commitments to multiple other fighter projects, ultimately appear to have been decisive factors in its cancellation.

While the F-15EX campaign quietly ended, Indonesia simultaneously took a more concrete step toward renewing its lower-end combat and training capabilities. On Feb. 4, 2026, the second day of the Singapore Airshow, Leonardo announced the signing of a Letter of Intent with PT ESystem Solutions Indonesia and the Indonesian Ministry of Defense for the supply and support of the M-346F Block 20.

The MoD has selected the M-346F to meet both training and light combat requirements, replacing the BAE Systems Hawk currently in service in the Mk. 209 light fighter and Mk. 109 advanced trainer variants. These aircraft have been a mainstay of the TNI-AU for decades, but are increasingly expensive to maintain and limited in their ability to operate in modern threat environments.

Leonardo did not disclose how many M-346F Block 20 aircraft Indonesia intends to acquire, a figure that will likely be determined during ongoing negotiations. However, the company emphasized that the LoI goes well beyond a simple aircraft purchase. It includes provisions for the localization of support, maintenance, and overhaul activities, as well as training capabilities and broader human capital development within Indonesia’s aerospace sector.

The Block 20 standard represents the most significant evolution of the M-346 family since its introduction. Announced in 2024 at the Farnborough International Air Show, the new configuration features a completely renewed cockpit, centered on two large area displays—one for each seat—replacing the six smaller multifunction displays of earlier variants. A new low-profile head-up display, digital video and data recorder, and an augmented-reality helmet-mounted display further modernize the pilot interface.

Beyond the cockpit, the Block 20 upgrade includes new navigation systems, a revised weapon management system, an updated flight management system, and a modern Identification of Friend or Foe transponder. For the M-346F fighter variant specifically, Leonardo has added several critical combat enhancements, most notably the integration of an AESA radar with fire-control capability, new air-to-air and air-to-ground weapons, and a built-in missile datalink.

Externally, the M-346F can be distinguished from the trainer configuration by its two wingtip missile rails, which increase the total number of hardpoints to seven, along with new antennas and a Defensive Aid Sub-System. In this configuration, the aircraft can carry more than 2,000 kilograms of weapons and is being marketed for a wide range of missions, including homeland defense and air policing, slow mover intercept, close air support, counter-insurgency, forward air control (airborne), combat search and rescue escort, interdiction, battlefield air interdiction, tactical maritime support, and tactical reconnaissance.

Indonesia-Leonardo

For Indonesia, the selection of the M-346F offers a relatively affordable way to bridge the gap between advanced lead-in fighter training and frontline combat operations, while freeing higher-end assets for missions where their capabilities are truly needed.

Indonesia’s broader air force modernization effort over the past decade has been ambitious but uneven. Several high-profile programs have advanced, while others have stalled or been cancelled outright.

In 2022, Jakarta signed an $8 billion deal with France for 42 Rafale fighters, including a comprehensive support package covering aircrew training, logistics for multiple air bases, and the establishment of a training center with two full-mission simulators. Deliveries are now underway, and in January 2026 reports emerged that the first three Rafales had arrived in Indonesia, marking a major milestone for the program.

By contrast, Indonesia’s attempt to acquire second-hand Dassault Mirage 2000-5 fighters from Qatar illustrates the volatility of its procurement environment. In 2023, the MoD signed a contract to acquire the Qatar Emiri Air Force’s entire fleet of 12 Mirage 2000-5s, intended as a stopgap measure to prevent a decline in combat capability while waiting for new aircraft deliveries. However, just a year later, the contract was cancelled, reportedly due to concerns over cost, sustainment, and the aircraft’s remaining service life.

Indonesia’s long-standing involvement in South Korea’s KF-21 Boramae program has also faced significant challenges. As Seoul’s main international partner in the KF-X development effort, Indonesia was originally expected to shoulder around 20 percent of the program’s costs, in return for technology transfer, industrial participation, and the acquisition of the aircraft for its own air force.

However, delayed payments and a subsequent reduction in Jakarta’s financial contribution have strained the partnership. Indonesia was once slated to receive the fifth KF-21 prototype for local flight testing and weapons integration, but recent South Korean media reports suggest this will no longer occur.

Crucially, Indonesia has yet to sign a firm contract for the acquisition of the KF-21 itself. Recent reports that the Philippines is in talks to acquire between 12 and 24 KF-21s appear to have injected new urgency into Jakarta’s deliberations, with discussions now reportedly focusing on a possible order for 16 KF-21 Block 2 aircraft to avoid falling behind in the production queue.

M-346 F Block 20
M-346 F Block 20

Adding another layer of complexity, Indonesia in 2025 announced plans to acquire 48 Kaan fighters from Turkish Aerospace Industries, Turkey’s first domestically developed combat aircraft, in a deal estimated at around $10 billion. If realized, the Kaan would represent one of the most advanced platforms in Indonesia’s future inventory, but the program is still in development and carries inherent technical and schedule risks.

Today, the TNI-AU operates a diverse mix of Western and Eastern-origin aircraft. Its frontline fighter force includes 33 F-16s of various blocks, alongside a small fleet of Russian-built aircraft consisting of 11 Su-30MK2s and five Su-27SKMs. These aircraft form the backbone of Indonesia’s air defense and strike capabilities, but sustaining such a heterogeneous fleet has long posed logistical and political challenges.

In addition to its mainline fighters, the air force operates BAE Systems Hawk Mk. 209 and Mk. 109 aircraft, EMB-314 Super Tucanos, and South Korean-built T-50i Golden Eagles as light attack and training platforms. The T-50i, in particular, serves both as a lead-in fighter trainer and a light combat aircraft, a dual role that prompted Indonesia to order six additional airframes in 2021.

As Indonesia’s ties with Russia have weakened in recent years, partly due to geopolitical pressures and sanctions, the balance of its fleet is gradually shifting toward Western and allied platforms. This transition aligns with Indonesia’s strategic position amid intensifying great-power competition in the Indo-Pacific, particularly as tensions in the South China Sea continue to shape regional security dynamics.

The decision to abandon the F-15EX while moving ahead with the M-346F underscores the careful balancing act facing Indonesian defense planners. High-end fighters offer unmatched capability, but they also demand long-term financial commitments that can crowd out other priorities. Light fighters and advanced trainers, by contrast, provide flexibility, capacity, and a pathway to develop human capital and local industry.

With its vast archipelagic territory and growing strategic importance, Indonesia remains an attractive partner for major aerospace manufacturers. France, Italy, South Korea, Turkey, and the United States all see Jakarta as a key market and a pivotal regional player. The challenge for Indonesia will be to turn this abundance of options into a coherent, sustainable force structure.

For now, the end of the F-15EX campaign closes one chapter in Indonesia’s modernization story, while the selection of the M-346F opens another—one that may prove more aligned with the country’s immediate operational needs and long-term strategic realities.

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