Türkiye's Baykar to establish drone manufacturing facility in Indonesia

Baykar, Türkiye's leading drone manufacturer, has entered into a landmark joint venture with Indonesia's defence firm Republikorp to establish a state-of-the-art unmanned aerial vehicle (UAV) manufacturing facility in Indonesia.

The agreement, signed on February 12, is a pivotal step in expanding the defence and aerospace collaboration between the two countries, Caliber.Az reports citing Turkish media.

This strategic partnership was finalized on the sidelines of Turkish President Recep Tayyip Erdoğan's visit to Indonesia, part of a broader effort to bolster economic and defence relations between the two Muslim-majority nations. The joint venture will focus on the coproduction of Bayraktar TB3 and Akıncı drones, with Baykar set to export these advanced UAVs to Indonesia. This move is expected to significantly enhance Indonesia's manufacturing capabilities in the defence sector.

The signing of the agreement followed a meeting between President Erdoğan and Indonesian President Prabowo Subianto. Erdoğan’s visit to Indonesia, which represents the second stop on his four-day tour, comes after his visit to Malaysia and is followed by a trip to Pakistan. The deal forms part of a wider package of agreements across various sectors, including energy, mining, agriculture, trade, defence, communications, and education.

One notable pledge made by President Erdoğan during his visit was Türkiye’s commitment to investing in the development of Indonesia’s new capital on Borneo Island, marking a significant step in the growing bilateral ties between the two nations.

The partnership between Türkiye and Indonesia has deepened considerably in recent years, particularly in the defence domain. The two countries previously signed a defence cooperation agreement in 2010, which led to the joint development of a new medium tank model by Indonesia’s state-owned arms manufacturer Pindad and Türkiye’s FNSS. In 2023, the two sides further strengthened their collaboration with a plan of action for joint military exercises and defence industry cooperation.

As part of its defence modernization efforts, Indonesia purchased 12 Turkish drones valued at approximately $300 million in 2023. This acquisition is part of Indonesia’s ongoing push to upgrade its military infrastructure.

Baykar has emerged as a cornerstone of Türkiye’s defence and aerospace industry. Its Bayraktar TB2 combat drones, which gained global recognition for their use by Ukraine against Russian forces, as well as in conflicts in Azerbaijan and North Africa, have earned the company international acclaim. The Bayraktar TB2 is currently the world’s most-exported combat drone.

Baykar is Türkiye’s largest defence exporter, with sales reaching $1.8 billion in 2024. The company has secured contracts with 34 countries for the Bayraktar TB2 and 10 countries for the more advanced Akıncı drones.

Baykar is also pioneering the development of Türkiye’s first unmanned fighter jet, the Kızılelma, which completed its maiden flight in late 2022 and has since entered mass production. In addition, its Bayraktar TB3 drone, designed specifically for the country’s aircraft carrier, achieved a historic milestone in December 2024 by becoming the first UAV to successfully take off and land on a short-runway warship.

Türkiye is a global leader in drone exports, commanding 65 per cent of the global market share, according to the US-based think tank Center for a New American Security. Baykar alone controls nearly 60 per cent of this market, outpacing its closest US competitor by a significant margin.

The new venture in Indonesia marks a new chapter in the ongoing collaboration between Baykar and Indonesia, reinforcing both countries’ ambitions to lead in the defence technology sector while bolstering regional security.

By Vafa Guliyeva