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Indonesia is reportedly close to finalizing a landmark defense agreement with Türkiye for the purchase of 48 KAAN fifth-generation fighter jets in a deal valued at over $10 billion, according to Turkish journalist Hakan Celik.
The potential agreement, which Celik says could be signed within hours at the Indo Defence 2025 Exhibition in Jakarta, would represent Türkiye's largest defense export in its history and mark the first international customer for the indigenous KAAN fighter jet program.
Turkish Defense Industries President Haluk Gorgun is leading negotiations at the Indo Defence 2025 Exhibition, where final details of the 10-year procurement program are being discussed, Celik reported from Jakarta.
"This is one of the biggest agreements in Turkish history. Indonesia will acquire 48 KAAN aircraft. The 10-year project has a value exceeding $10 billion," Celik stated, adding that Gorgun's contribution to the project's realization has been significant.
The journalist indicated that the signing ceremony would involve Gorgun and the Indonesian president at the defense exhibition, describing it as "one of the most important defense industry agreements in terms of scale and monetary value that the Republic of Türkiye has signed with another country."
Indonesia's interest in the KAAN fighter jet program has been evident for some time, with official confirmation coming at the highest levels of government. During his visit to Türkiye in April, Indonesian President Prabowo Subianto explicitly expressed his country's desire to participate in the program.
"Indonesia wants to take part in the fifth generation KAAN National Combat Aircraft project and similarly wants to participate with the Turkish defense industry in the submarine project (MILDEN). We want to benefit from this," Subianto stated during a joint press conference with President Recep Tayyip Erdogan.
The potential KAAN deal would significantly expand the already robust defense cooperation between the two nations.
The countries have successfully collaborated on the Kaplan MT (Harimau) medium tank project, a joint venture between FNSS and PT Pindad that has entered service with the Indonesian military.
This successful joint production and technology transfer model has established a solid foundation for larger projects, with the KAAN program representing a natural progression in bilateral defense industrial cooperation.
Turkish Aerospace Industries (TAI) General Manager Mehmet Demiroglu recently confirmed growing international interest in the KAAN program, with three countries currently in discussions for the national combat aircraft.
"Saudi Arabia has been interested for a long time; their interest is at the highest level right now. The Indonesian side is also going well," Demiroglu stated in his assessment of the project's global reception.
Speaking at the International Defense Exhibition and Conference (IDEX) in Abu Dhabi, Demiroglu acknowledged that while no official international participation exists yet, "there is a lot of interest from several nations, but these processes take time and require high-level decisions."
For Türkiye, the potential Indonesian deal would represent a major milestone in establishing the country as one of the few nations capable of exporting fifth-generation fighter aircraft.
The economic impact of the $10 billion-plus deal would be substantial, while also helping to reduce unit costs through increased production scale.
Indonesia's acquisition of KAAN would mark a significant leap in the modernization of its air force capabilities. The move appears strategic, particularly as Indonesia has reportedly faced challenges with financial commitments in the KF-21 Boramae project with South Korea, making the KAAN an attractive alternative for technological advancement and defense supplier diversification.
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