Türkiye, Indonesia set to boost defense industry ties

ANKARA / ISTANBUL

Indonesia and Türkiye will strengthen cooperation in the defense industry, energy, contracting, health and agriculture sectors, especially in the defense industry, striving to reach a trade volume target of $10 billion, experts said.

The visits of President Recep Tayyip Erdogan to Indonesia in February and President Prabowo Subianto to Türkiye on Thursday opened new doors of cooperation.

The business people of the two countries, who came together again during Prabowo's visit, confirmed their determination to move forward on the course drawn by the presidents to deepen relations further.

Nuri Dogan Karadeniz, head of the Türkiye-Indonesia Business Council of the Foreign Economic Relations Board (DEIK), told Anadolu that trade relations with Indonesia are moving towards the level of $3 billion, and this figure has the potential to reach $10 billion.

“We can say that 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,” he said.

Defense industry the 'crown jewel'

Mentioning President Erdogan's visit to Indonesia earlier this year, Karadeniz said they have started to achieve good results from their meetings with representatives of the Indonesian Chamber of Commerce and Industry.

Karadeniz said that at this point, the defense industry is the "crown jewel" of the Turkish industrial sector.

“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. Besides, Türkiye's incredible knowledge and equipment potential in agriculture and hotel management are among the potential cooperation areas. Our contractors are involved in the relocation of the capital Jakarta," he said.

"Meanwhile, Indonesia is a serious energy producer and importer. Therefore, there is a great need for Turkish business people in such a dynamic country, especially in renewable and sustainable energies. In general, we expect very serious developments in the rest of this year, 2026 and 2027, which will exceed even our current expectations.”

'Trade will reach huge volumes'

Karadeniz said Indonesia is pleased with the achievements of the Turkish defense industry due to both cultural and sectoral similarities between the two nations, and the fact that Jakarta is a reliable partner.

“Weapon technologies that you acquire for a 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," he said. "Türkiye and Indonesia have exceeded these trust limits in a positive way. Indonesia needs 100 new floating weapons, from underwater robots to frigates. Our companies in Türkiye have also received incredible offers. In addition, [Turkish defense companies] ASELSAN, HAVELSAN, and FNSS give us incredible confidence with both land vehicles and sea vehicles, drones, digital environments and software. Trade will reach huge volumes, especially in defense and energy.”

Indonesia, Türkiye 'can work very well together'

Anindya Novian Bakrie, head of the Indonesian Chamber of Commerce and Industry, said the trade volume between Indonesia and Türkiye was not sufficient and should be increased.

“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," he said.

"The contracting sector is also one of the areas where we can work together. The two countries can cooperate in energy, health, digital and many other sectors. The defense industry is Türkiye's strong point. Indonesia is also strengthening its defense sector. I think the two countries can work very well together.”

Bakrie said Indonesia exports palm oil, as well as steel and many other products and wants to increase exports to Türkiye. He said he also invited Turkish companies to invest in Indonesia.

Emphasizing the importance of the health sector in Indonesia, Bakrie said: “There are many devices we can buy from Türkiye. This increases trade.”