Turkey, Indonesia to Launch Joint Defense Manufacturing Hub

Turkish missile maker Roketsan has signed a landmark agreement with Indonesia to establish a joint defense production facility, marking a significant expansion of Türkiye’s growing defense industry footprint in Southeast Asia. The deal, announced during the Antalya Diplomacy Forum (ADF) 2025, represents more than just a product sales agreement, offering a strategic partnership for co-development of advanced defense technologies.

Strategic Partnership Beyond Product Sales

Roketsan General Manager Murat Ikinci emphasized that this collaboration goes beyond traditional arms deals, stating, “In the upcoming period, we aim to rapidly increase international relations and international collaborations in order to quickly boost the export capacity of the Turkish defense industry.” The partnership aligns with Türkiye’s vision of offering allied and friendly nations the opportunity to jointly develop defense capabilities rather than simply selling finished products.

The announcement came during Indonesian President Prabowo Subianto’s official visit to Ankara, where he met with President Recep Tayyip Erdoğan and addressed the Turkish Parliament. This high-level engagement underscores the strategic importance both nations place on defense cooperation.

Advanced Missile Systems and Smart Ammunition

According to Ikinci, the joint production agreement with the Indonesia-based defense company will focus on manufacturing cutting-edge weapon systems, including:

• Anti-ship missiles
• Cruise missiles
• Various smart ammunition systems

The primary objectives of this partnership extend beyond manufacturing, encompassing technology transfer, strengthening Indonesia’s local defense industry infrastructure, and implementing comprehensive training programs for Indonesian engineers and technicians.

Defense Industry

Nuri Doğan Karadeniz, head of the Türkiye-Indonesia Business Council of the Foreign Economic Relations Board (DEIK), described the defense industry as the “crown jewel” of bilateral relations. The timing of this agreement is particularly significant, as President Prabowo Subianto previously served as Indonesia’s defense minister, where he initiated defense cooperation agreements with Türkiye that have now reached full maturity.

“Since Indonesia’s newly elected president was the defense minister earlier, defense cooperation agreements with Türkiye started to sprout for five years and are now in full bloom,” Karadeniz explained, highlighting how previous groundwork is now yielding concrete results.

Expanding Trade Beyond Defense Sector

While defense cooperation stands as the centerpiece of bilateral relations, both countries recognize the potential for broader economic engagement. Current trade relations between Türkiye and Indonesia are approaching $3 billion, but Karadeniz believes this figure has the potential to reach $10 billion through expanded cooperation in various sectors.

“Indonesia is almost the locomotive of ASEAN countries. Considering its proximity to countries such as China, Malaysia, Singapore and the Philippines, it is an aircraft carrier for us,” Karadeniz noted, emphasizing Indonesia’s strategic position in Southeast Asia.

Diversifying Cooperation Opportunities

Beyond defense, the two nations are exploring collaboration in:

• Energy sector, particularly renewable and sustainable energies
• Agricultural development, leveraging Türkiye’s expertise
• Hotel management and tourism
• Infrastructure development, with Turkish contractors already involved in Jakarta’s capital relocation project
• Healthcare sector, with potential for Turkish medical equipment exports

Anindya Novian Bakrie, head of the Indonesian Chamber of Commerce and Industry, reinforced this sentiment, stating: “The defense industry can be a good starting point. Because the Turkish defense industry is the best in the world and the right thing to do is to increase trade volume in the defense sector.”

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Mutual Benefits and Trust

The partnership is built on a foundation of mutual trust and cultural affinity. As Karadeniz explained, “Weapon technologies that you acquire for the long term in the defense industry should be purchased from reliable countries. Thus, with the trust your suppliers give you, their requirements such as maintenance, repair and ammunition supply, should continue to be met.”

This Turkish-Indonesian defense collaboration represents a strategic alignment of interests that could reshape the defense manufacturing landscape in Southeast Asia while opening doors for broader economic cooperation between two nations with growing global influence.

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