Indonesia Secures $10 Billion Deal for Türkiye’s KAAN Stealth Fighters in Major Defence Breakthrough

(DEFENCE SECURITY ASIA) – In a transformative shift for Southeast Asia’s defence posture, Indonesia has signed a landmark agreement with Türkiye for the acquisition of 48 KAAN fifth-generation fighter jets, in a deal reportedly valued at US$ 10 billion (RM44 billion).

This high-profile procurement establishes Indonesia as the first Southeast Asian country to operate the Turkish-developed KAAN, positioning Jakarta as a pivotal air power in the Indo-Pacific region.

The KAAN, developed by Turkish Aerospace Industries (TAI), is Türkiye’s ambitious response to being cut from the U.S. F-35 program and is now being propelled into the export market with Indonesia as its first foreign operator.

“Under the agreement signed with our friendly and brotherly nation, Indonesia, 48 KAAN fighter jets will be produced in Türkiye and exported to Indonesia,” Turkish President Recep Tayyip Erdoğan declared in a bold diplomatic statement.

“Indonesia’s local capabilities will also be utilized in the production of KAAN,” Erdoğan added on the social media platform X, highlighting industrial collaboration that mirrors the model of next-gen aerospace co-production.

According to Türkiye’s Anadolu Agency, the production and delivery of the KAAN jets will be spread over a 10-year timeframe, signaling a long-term strategic partnership between Ankara and Jakarta.

The agreement was formally sealed during the Indo Defence 2025 expo in Jakarta, one of the region’s largest defence exhibitions and a platform for burgeoning military-industrial diplomacy.

President Erdoğan hailed the deal as a testament to the advancement of Türkiye’s defence industry, now emerging as a formidable player in the global fifth-generation fighter jet arena.

“This agreement showcases the progress and achievements of our domestic and national defense industry,” Erdoğan emphasized, underscoring Ankara’s pursuit of defence autonomy and its growing geopolitical footprint.

He also extended praise to Indonesian President Prabowo Subianto for his critical role in securing the agreement, signaling strong personal and strategic ties between the two leaders.

Jakarta’s multibillion-dollar investment in the KAAN comes on the heels of its USD 8.1 billion (RM36 billion) procurement of 42 Rafale multirole fighters from France’s Dassault Aviation, showcasing Indonesia’s intent to diversify and modernize its air combat capability.

President Erdoğan had earlier visited Indonesia in February, with President Prabowo making a reciprocal visit to Ankara in April, further cementing bilateral military and defence cooperation.

During his visit, President Prabowo publicly announced Indonesia’s interest in participating in Türkiye’s KAAN fighter development program as well as its national submarine construction initiative, reflecting Jakarta’s growing interest in indigenous capability building.

“Indonesia wants to join the development of the KAAN fifth-generation fighter and the joint submarine project with Türkiye’s defence industry,” Prabowo stated, as reported by Indonesia’s national news agency ANTARA.

Following this diplomatic momentum, Turkish Aerospace Industries (TAI) confirmed that a formal agreement had been signed with Indonesia for co-production and export of the KAAN stealth fighter.

“On our aviation journey spanning over a century, we now take pride in sharing our own fifth-generation fighter jet with friendly nations,” stated Haluk Görgün, President of Türkiye’s Presidency of Defense Industries (SSB), via X.

Görgün described the partnership—spearheaded by TAI and involving Indonesian defence companies—as “one of the most tangible examples of joint production, technology sharing and strategic collaboration.”

Türkiye launched the KAAN project in 2016, shortly after its controversial expulsion from the U.S.-led F-35 Joint Strike Fighter program, following Ankara’s decision to acquire the Russian-made S-400 Triumf air defence system.

The aircraft, formerly known as TF-X or Milli Muharip Uçak (National Combat Aircraft – MMU), represents Türkiye’s bold initiative to join the exclusive club of nations capable of building fifth-generation stealth combat jets.

KAAN’s maiden flight in February 2024 saw it reach an altitude of 8,000 feet and a speed of 230 knots, marking a historic milestone for Türkiye’s indigenous aerospace capability.

Flight testing for the second and third KAAN prototypes is scheduled to commence by late 2024 and early 2025, respectively, as the program enters an accelerated development phase.

Nearly all components of the KAAN are locally developed, except for select systems such as the ejection seat, engine, and flight control stick, a testament to Türkiye’s self-reliant defence industrial base.

By 2029, TAI is projected to produce two KAAN jets per month, generating USD 2.4 billion (RM9.6 billion) in annual revenue, and further reinforcing Türkiye’s defence export portfolio.

The KAAN will ultimately replace more than 200 aging F-16 fighters in service with the Turkish Air Force, ensuring a seamless transition to a domestically sustained next-generation air combat fleet.

Mass production is set to commence in 2028, with the first batch of 20 Block 10 KAAN jets expected to be delivered to the Turkish Air Force in the same year.

Türkiye plans to operate more than 100 KAAN fighters by 2032, making it one of the few nations worldwide fielding an indigenous fifth-generation fleet at scale.

In a bid to extend the platform’s capabilities, Türkiye is reportedly planning a carrier-based KAAN variant to be deployed aboard its future aircraft carrier, MUGEM (Milli Uçak Gemisi), currently under construction.

Speaking to Turkish media, Naval Design Project Office (DPO) director Albay Ucar revealed that the carrier is being designed to operate exclusively with indigenous air platforms, including KAAN.

Ucar confirmed that technical feasibility studies are ongoing to adapt the KAAN for carrier operations, stating: “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.”

In May 2024, Türkiye officially offered the KAAN fighter jet to Malaysia, proposing a comprehensive defence cooperation framework that includes access to advanced technology and co-development opportunities.

In a written interview with Malaysia’s national news agency BERNAMA during DSA 2024, SSB President Prof Haluk Görgün said Malaysia could benefit immensely by partnering with Türkiye on future defence platforms.

He noted that such collaboration would accelerate Malaysia’s air power modernization while boosting the domestic defence ecosystem.

“We are open to working with Malaysia, a friendly and brotherly nation, in joint development projects including KAAN,” Görgün said.

“We are also open to sharing the knowledge we’ve gained from our next-generation basic trainer aircraft ‘HURKUS’ and our light fighter ‘HURJET’ with Malaysia,” he added.

As Türkiye’s KAAN program gathers momentum globally, its entry into Southeast Asia through Indonesia marks the beginning of a new strategic axis of defence cooperation, with implications that could reshape the regional airpower balance for decades to come.

— DEFENCE SECURITY ASIA