Turkey's Baykar to Establish JV in Indonesia to Produce Drones

Baykar, a Turkish drone manufacturer, and Indonesian defense company Republikorp have signed an agreement to establish a joint venture for unmanned aerial vehicle (UAV) production, assembly, and maintenance in Indonesia.

The signing ceremony took place during Turkish President Recep Tayyip Erdoğan’s visit to Indonesia, where he met with Indonesian President Prabowo Subianto. The agreement is part of broader efforts to enhance cooperation in technology transfer and local production between the two countries.

As part of the deal, Indonesia will procure 60 Bayraktar TB3 armed drones and 9 Bayraktar Akıncı combat drones.

Baykar CEO Haluk Bayraktar stated that the company would provide technology transfer, production support, and training programs.

The deal was among several agreements signed during Erdoğan’s visit, covering sectors such as energy, mining, trade, communications, and education. Turkey and Indonesia have expanded defense ties in recent years, previously cooperating on joint tank development and military exercises.

Turkey accounts for 65% of global drone exports, according to a report by the U.S.-based think tank Center for a New American Security. Baykar alone holds nearly 60% of the market, making it three times larger than its closest U.S. competitor.

Indonesia and Turkey signed a defense cooperation agreement in 2010, leading to joint development of a medium tank. In 2023, they expanded ties with a plan for joint military exercises and defense collaboration. That year, Indonesia bought 12 Turkish drones for $300 million to modernize its military.