Baykar — an Istanbul-based private-owned firm specializing in unmanned aerial vehicles (UAV) — has partnered with Indonesian defense holding Republikorp to set up a joint venture for local drone production. The deal’s signing for this entity took place on the sidelines of Turkish President Recep Tayyip Erdogan’s talks with his Indonesian counterpart Prabowo Subianto at the Bogor Palace.
“We have agreed to ramp up joint production and defense industry cooperation,”
Prabowo told reporters shortly after the signing ceremony.
Earlier that day, Prabowo told Erdogan that he wanted to see Indonesian and Turkish companies establishing joint ventures. He said that Indonesia’s existing partnership with Turkish defense companies, including Baykar, is “already going well”.
A leaders’ joint statement document issued post-meeting wrote that Prabowo and Erdogan wanted to expand the current defense cooperation “beyond procurement”. “Both leaders … welcomed the establishment of a joint venture and representative offices for Turkish primary defense industry firms in Indonesia,” the document wrote.
The first collaboration was carried out between Baykar Makina and Republikorp to form a Joint Venture Company (JVC) that will focus on the production, assembly, and maintenance of UAVs in Indonesia. The main products to be localized are 60 units of the Medium-Altitude Long-Endurance (MALE) TB3 Bayraktar class UAVs and 9 units of the High-Altitude Long-Endurance (HALE) Akinci Bayraktar class.
Republikorp Chairman Norman Joesoef said that this collaboration aims to strengthen the aerospace industry and national defense independence.
“In addition to production, this collaboration opens up opportunities for research and development of UAV technology at the regional level,” he said on Thursday, February 13, 2025.
CEO of Baykar Makina, Haluk Bayraktar, added that his party will contribute to technology transfer, training of experts, and integration of UAVs into the Indonesian defense ecosystem.
Baykar’s official website shows that it produces various types of UAVs, including the Bayraktar TB2, which the company claims can carry out “surgical-precision strikes”. Indonesian Air Force’s chief of staff Mohamad Tony Harjono had previously told reporters last August that the military was already eyeing the Bayraktar TB2.
President Recep Tayyip Erdoğan and Indonesia’s President Prabowo Subianto (2nd R) look on as Baykar CEO Haluk Bayraktar (L) and Republikorp founder Norman Joesoef (R) sign an agreement at the Presidential Palace, Bogor, West Java, Indonesia, Feb. 12, 2025. (AA Photo)
There are already some existing bilateral deals on arms production. As a case in point, state-run arms producer Pindad and its Turkish counterpart FNSS are jointly developing the medium tank Harimau. Last October, both companies announced that they had agreed to produce a Kaplan armored personnel carrier (APC) for the Indonesian army.
The Baykar-Republikorp joint venture’s agreement came out amid Indonesia’s military modernization plans. The Defense Ministry is also among the few government bodies that get exempted from Prabowo’s budget efficiency measures, meaning that the plans to upgrade defense systems would likely remain unaffected. Prabowo used to be Indonesia’s defense minister before taking office as president last October.
This marked Erdogan’s first visit to Indonesia since 2022. The Turkish leader at the time traveled to Bali to attend the G20 Summit.
Top Photo: Republikorp chairman Norman Joesoef (right) and Baykar’s chief executive officer Haluk Bayraktar (left) exchange the deal on drone joint venture in Indonesia at the Bogor Palace on Feb. 12, 2025. Behind them are Turkish President Recep Tayyip Erdogan and his Indonesian counterpart Prabowo Subianto. (Antara Photo/Aditya Pradana Putra)
Sources: Jakarta Globe; Indonesia Business Post