2025 has ushered in significant developments with a series of high-profile defense agreements and procurements. So far Indonesia partnered with France to co-develop armored vehicles, secured ships and patrol vessels from Japan and Italy; held defense talks with Turkey and Japan that covered cyber security, technology transfer, joint production, and defense industry cooperation; discussed a $450 million BrahMos missile deal and expanding defense manufacturing and maritime safety with India; and engaged in multinational cooperation with the US, Vietnam, and the Philippines and a joint exercise with Japan, all signaling deeper commitment to international defense interoperability.
This momentum builds upon President Prabowo’s ratification of defense cooperation agreements with Brazil, Cambodia, France, India, and the United Arab Emirates last November, on top of similar agreements with Australia, Germany and the United States he previously signed while Defense Minister. Current priorities include the development of fighter jets, submarines and military satellites and an emphasis on the importance of the defense industry to Indonesia's national security strategy to strengthen self-reliance in defense manufacturing and create economic opportunities. By securing defense deals that involve local industry participation, Indonesia aims to foster long-term sustainability in its defense sector, reduce dependency on foreign suppliers, and boost local job creation. "Superior products such as aircraft, patrol boats and light weapons not only enhance Indonesia's credibility on the international stage but also promote economic growth,” according to Indonesia's Defense Industry Policy Committee.
For U.S. companies, this defense expansion presents numerous opportunities, but Indonesia’s focus on domestic production means US companies will need to explore partnerships that go beyond just sales. Exploring technology transfer, joint manufacturing, and supply chain integration can help position companies as key partners in Indonesia’s evolving defense landscape.
