Indonesia and Türkiye Deepen Defense Industry Ties, Eyeing $10 Billion Trade Target
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JAKARTA, investortrust.id — Indonesia and Türkiye have agreed to strengthen collaboration in key strategic sectors—primarily defense—while also targeting deeper cooperation in energy, construction, healthcare, and agriculture, as both nations aim to elevate bilateral trade to $10 billion.
The renewed commitment follows Turkish President Recep Tayyip Erdogan’s visit to Indonesia in February and a reciprocal visit by Indonesian President Prabowo Subianto to Ankara on Thursday, April 10. Business leaders accompanying Prabowo emphasized that both countries are aligned in advancing presidential directives into concrete trade and investment partnerships.
In a statement to Turkish state-run news agency Anadolu, Nuri Dogan Karadeniz, Chair of the Türkiye-Indonesia Business Council under the Foreign Economic Relations Board (DEIK), said bilateral trade had reached $3 billion and is well-positioned to rise significantly.
“Indonesia is fast becoming the locomotive of ASEAN economies,” Karadeniz said on Friday, April 11. “With its proximity to major regional markets like China, Malaysia, Singapore, and the Philippines, Indonesia represents an aircraft carrier of opportunity for Turkish industry.”
Karadeniz highlighted that Erdogan’s earlier visit had already sparked positive business engagement with the Indonesian Chamber of Commerce and Industry, or Kadin.
President Prabowo Subianto holds a private meeting (tête-à-tête) with Turkish President Recep Tayyip Erdogan in Ankara, Türkiye, on Thursday, April 10, 2025. Photo: @RTErdogan.
The defense sector, described as the “crown jewel” of Türkiye’s industrial portfolio, emerged as the leading area for collaboration. With Prabowo having previously served as Indonesia’s defense minister, the countries have expanded military ties significantly over the past five years.
Karadeniz added that Türkiye’s capabilities in agriculture and hospitality management also align with Indonesia’s development goals. Turkish contractors are already involved in Indonesia’s capital relocation project, and Turkish firms see promising prospects in Indonesia’s growing renewable energy demand.
“Indonesia is both a major energy producer and importer, creating fertile ground for Turkish business involvement, especially in sustainable energy,” Karadeniz explained. “We expect major progress this year and in 2026–2027, possibly surpassing our current forecasts.”
He noted that Indonesia views Turkish defense technology as reliable and strategic, emphasizing the importance of trust when it comes to long-term supply chains in the arms industry, including maintenance and ammunition.
“Türkiye and Indonesia have crossed the threshold of trust,” Karadeniz said. “Indonesia is currently looking to acquire 100 new naval weapons systems, from underwater drones to frigates. Turkish defense firms like Aselsan, Havelsan, and FNSS have earned strong confidence through their advanced platforms in land and sea vehicles, drone technologies, and software systems.”
Meanwhile, Anindya Novyan Bakrie, Chair of Kadin Indonesia, noted that current trade volume between the two countries remains underwhelming and needs a significant boost.
“The defense sector could be the ideal entry point,” he said. “Türkiye's defense industry is among the world’s best, and it’s logical for us to enhance our trade relationship in that area.”
Anindya added that construction, energy, healthcare, and digital sectors also offer extensive potential for collaboration. “Türkiye’s strength in defense complements Indonesia’s ongoing military modernization. There’s great synergy to explore.”
He also highlighted Indonesia’s key exports—palm oil, steel, and various other products—and encouraged Turkish companies to invest in the Indonesian market. Noting Indonesia’s need for medical equipment, he said imports from Türkiye would enhance healthcare capacity and contribute to trade expansion.