Türkiye’s biggest defence deal: Indonesia signs for KAAN fighter jets in historic $10bn order
June 11, 2025
Indonesia has agreed to the purchase of 48 units of Türkiye’s homegrown TAI KAAN fighter jets. It’s Türkiye’s first export contract for the in-development aircraft and the largest export defence deal in the nation’s history.
In a post on X, Turkish President Recep Tayyip Erdogan said, “I hope that this agreement, which reveals the development and point reached by our domestic and national defense industry, will be beneficial for Türkiye and Indonesia.”
Erodgan indicated that, although the 48 KAAN fighters will be produced in Türkiye, Indonesia’s ‘local capabilities’ will also be integrated into the process.
The Turkish leader didn’t disclose the financial details of the agreement, but speculation suggest that the deal is worth around $10 billion.
The deal was made on the sidelines of the defence expo Indo Defence 2025, taking place in Jakarta, Indonesia, from 11 – 14 June.
KAAN: Türkiye’s first indigenous 5th generation fighter jet
The KAAN is a 5th generation multirole stealth fighter, in development by Turkish Aerospace Industries (TAI). It has been developed to replace Türkiye’s aging F-4s and F-16s, but this is the first overseas sale of the type.
The KAAN first flew in February 2024, with a second prototype expected to fly before the end of this year.
Currently, it’s powered by General Electric F414-GE-400 engines, but work is underway to develop an indigenous engine option.
The aircraft is anticipated to reach full operational capability in the 2030s.
Türkiye’s ties could see more KAAN sales
Economic and defence ties between Türkiye and Indonesia have been growing. Earlier this year, the nations agreed on the joint development of a Baykar combat drone factory in Indonesia.
Baykar will work in partnership with Republikorp, a defence business in Jakarta to develop coproduction of Bayraktar TB3 and Akıncı drones.
But it’s not just Indonesia Türkiye has been forging links with. Both Azerbaijan and Pakistan have strong defence ties, and could be in line for KAAN fighter jets for their own fleets in the future.
Other nations that have shown interest in the KAAN include Egypt, Saudi Arabia and Malaysia.
