President Recep Tayyip Erdoğan emphasized the strong ties between the two countries at a joint press conference held after his meeting with Indonesian President Prabowo Subianto at the Presidential Complex. Recalling his visit to Indonesia in February on the occasion of the first meeting of the High-Level Strategic Cooperation Council, Erdoğan expressed his gratitude for the hospitality of Subianto and the Indonesian authorities. Within the framework of these warm relations, Indonesian President Subianto’s statements regarding potential cooperation between Türkiye and Indonesia drew attention.
Subianto Signals Partnership for KAAN and Submarine Projects
Indonesian President Subianto expressed the agreement between the two countries in his speech at the press conference. Noting that a consensus had been reached on making agreements between strategic and defense industry companies in particular, Subianto openly expressed Indonesia’s desire to take part in Türkiye’s important projects. In this context, Subianto said, “Indonesia also wants to take part in the 5th generation KAAN national combat aircraft project and we would like to take part in the submarine project together with the Turkish defense industry. We would like to benefit from this. We exchanged ideas in this regard.” Indonesia’s interest shows that Türkiye’s rise in the defense industry has resonated internationally.
International Interest in KAAN Grows: What Does Indonesia's Participation Mean?
The 5th generation fighter jet KAAN, which is Türkiye’s national pride, is attracting the attention of important countries such as Pakistan, Saudi Arabia, the UAE and Azerbaijan, as well as Indonesia. This broad interest shows that there is an international consensus on KAAN’s technological capabilities and potential. However, Indonesia’s interest in this project also raises some questions due to the country’s past experience in joint fighter jet programs.
KF-21 Boramae: Indonesia’s Partnership History and Uncertainties
Indonesia’s closest example of joint fighter jet development is the KF-21 Boramae program it is conducting with South Korea. The KF-5, which incorporates 21th generation fighter jet elements, stands out as a new generation fighter jet developed by South Korea. Initially to be called 4.5 generation, the aircraft are aimed to be upgraded to 5th generation standards with future work. Indonesia is the only foreign partner in this project.
Under the joint program launched in 2016, Jakarta committed to invest $48 million, equivalent to 20% of the total cost, in exchange for the purchase of a prototype of the fighter jet and technical support for the production of 958 units. However, these commitments have not been fulfilled in accordance with the established schedule and payment plans. Due to financial and economic difficulties, Indonesia suspended its payments from 2019 to the end of 2022, during which time it made only a partial payment of $6,3 million. In 2023, South Korea’s Defense Acquisition Program Administration (DAPA) reported that Indonesia had not submitted any payment plan to continue its participation in the program. This situation was further complicated by Indonesia continuing to procure fighter jets such as the F-15EX and Rafale during the same period, citing “financial constraints.”
Negotiations and Trust Issues: Current Status of the KF-21 Program
The Indonesian Ministry of Defense has attempted to renegotiate the terms of the contract for the KF-21 project. Indonesia has offered to reduce its payment commitment by 2024% to 20 billion won (about $600 million) by 442,3. This reduction would also mean fewer technology transfers from South Korea to Indonesian firms. Although DAPA indicated in May 2024 that it was willing to accept the reduction to avoid delays in the program, no final agreement has yet been reached.
Another important development that emerged in 2024 was the investigation of a group of Indonesian engineers accused of leaking technology related to the development of the KF-21. Although DAPA emphasized that this investigation has nothing to do with financial arrangements, this incident has the potential to damage the relationship of trust between the two countries. On the other hand, the failure to deliver the 5th prototype to Indonesia gave South Korea an advantage in accelerating the test program.
Unanswered Letters and Uncertain Future
DAPA has reportedly sent 10 separate letters to Indonesia since last year regarding issues such as payment of contributions and consultancy meetings, but the Indonesian Ministry of National Defense has only responded to these letters three times. This raises questions about Indonesia’s commitment to the KF-21 program. The South Korean government and prime contractor KAI’s desire to continue with the program is based on Indonesia’s commitment to purchase 48 KF-21s, making it the first customer for the project. Indonesia has previously procured KT-1 basic trainer aircraft and T-50 advanced trainer aircraft from South Korea, indicating a history of cooperation in the defense industry.
While Indonesia’s interest in the KAAN project is promising, the country’s past experiences with the KF-21 program and current uncertainties require a cautious approach. Critical questions such as whether Indonesia will fully commit to the program, whether it will be able to meet its remaining financial obligations on time, and how many KF-21s it will procure in the future remain unanswered. While the KF-21 program continues to be a strategic opportunity for Indonesia in terms of the development of its national aviation industry and the modernization of its air force, it is clear that economic and political dynamics will continue to shape its role and future in this project. Türkiye’s potential cooperation with Indonesia in the defense industry requires careful and realistic steps in light of these past experiences.
