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Indonesia-Turkey Kaan Fighter Jet Deal: Defense Modernization Pact

Indonesia acquires 48 Turkish Kaan jets in a $10B co-production deal, boosting defense autonomy and diversifying global arms partnerships.

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Indonesia’s Fighter Jet Deal with Turkey: A Strategic Leap in Defense and Diplomacy

Indonesia’s decision to purchase 48 Kaan fighter jets from Turkey marks a significant milestone in both countries’ defense trajectories. The agreement is Turkey’s first export deal for its domestically produced fifth-generation fighter jet and reflects Indonesia’s broader ambition to modernize its military and reduce reliance on traditional arms suppliers like the United States and Russia.

Announced during the Indo Defence 2025 exhibition in Jakarta, the deal not only involves the acquisition of fifth-generation multirole combat aircraft but also includes a co-production component. This aligns with Indonesia’s “Make in Indonesia” policy and strengthens bilateral ties with Turkey, a country that has rapidly advanced its defense capabilities over the past two decades.

As global defense dynamics shift and regional tensions rise in the Indo-Pacific, the deal underscores a strategic pivot for both nations. For Turkey, it’s a validation of its growing defense manufacturing prowess. For Indonesia, it’s a step towards technological self-sufficiency and strategic autonomy in a multipolar world.

Understanding the Kaan Fighter Jet and Its Strategic Value

Turkey’s Ambitious Kaan Project

The Kaan fighter jet, developed by Turkish Aerospace Industries (TAI), is Turkey’s most advanced military aviation project to date. Conceived as a fifth-generation multirole combat aircraft, the Kaan features stealth capabilities, advanced avionics, and AI integration. It is designed to operate in complex threat environments and is expected to serve as a backbone for Turkey’s future air force capabilities.

The development of the Kaan began in earnest after Turkey’s removal from the U.S.-led F-35 program in 2019, following its acquisition of the Russian S-400 missile defense system. This geopolitical setback spurred Ankara to accelerate indigenous defense projects, with the Kaan emerging as a flagship initiative. The aircraft completed its maiden flight in 2024, using General Electric F110 engines, and is expected to transition to a domestically produced engine in the coming years.

TAI aims to deliver the first operational Kaan units to the Turkish Air Force by 2028, although some analysts suggest delays could push this to 2029. The aircraft’s modular design allows for future upgrades, including integration with unmanned aerial vehicles (UAVs), making it a potential sixth-generation platform.

“To reduce costs, it is essential to increase the number of orders. As the number of units increases, the per-unit price of the aircraft decreases.”, Yusuf Akbaba, Turkish defense industry expert

Indonesia’s Strategic Calculus

For Indonesia, the Kaan deal addresses multiple strategic imperatives. The Indonesian Air Force (TNI-AU) currently relies on aging F-16s and a mix of Russian and Western aircraft. The acquisition of the Kaan jets will not only modernize its fleet but also signal Jakarta’s intent to diversify its defense partnerships amid evolving regional threats, particularly in the South China Sea.

Indonesia had previously collaborated with South Korea on the KF-21 Boramae program but later scaled back its involvement. Analysts argue that the KF-21 lacks full fifth-generation capabilities, whereas the Kaan offers a more advanced solution with features like stealth design and AI-assisted combat systems. The co-production component of the Kaan deal also aligns with Indonesia’s industrial ambitions, potentially boosting its domestic aerospace sector.

Defense analyst Dr. Halim Santoso of Indonesia Defense University noted, “This deal not only enhances Indonesia’s air combat capabilities but also represents a strategic partnership that can foster indigenous aerospace development.”

Implications for Regional and Global Defense Markets

The Kaan deal is emblematic of a broader trend in global arms trade: the rise of emerging defense exporters challenging traditional suppliers. Turkey’s success in securing a major jet fighter export contract places it in a new league, alongside established players like the U.S., Russia, and France. This could pave the way for additional sales to countries such as Pakistan and Azerbaijan, which have expressed interest in the Kaan platform.

Co-production agreements like the one between Turkey and Indonesia are becoming increasingly common. They offer buyer countries not only military hardware but also technology transfer, local job creation, and industrial development. For Turkey, such deals help offset development costs and validate its investment in indigenous platforms.

International security expert James Rogers of the International Institute for Strategic Studies (IISS) commented, “Indonesia’s choice signals a shift towards emerging defense suppliers and reflects changing geopolitical alignments in the Indo-Pacific.”

Broader Geopolitical and Industrial Implications

Turkey’s Emergence as a Defense Exporter

Turkey has steadily built its defense industry over the past 20 years, transitioning from an importer of military technology to a competitive exporter. Platforms like the Bayraktar TB2 drone, the Altay main battle tank, and the T129 Atak helicopter have already made inroads in global markets. The Kaan represents the next step, a high-value, high-tech export that could redefine Turkey’s position in the global arms trade.

According to Turkish defense expert Prof. Ayşe Demir of Middle East Technical University, “The Kaan program’s success in securing a major export contract validates Turkey’s growing role as a defense exporter and its technological maturity.”

Turkey’s ability to deliver on such a complex project will be closely watched. If successful, it could open doors to additional partnerships and contracts, particularly from countries seeking alternatives to Western or Russian suppliers amid increasing geopolitical polarization.

Indonesia’s Defense Modernization Strategy

Indonesia has embarked on a comprehensive military modernization program, which includes acquiring submarines, naval vessels, and air defense systems. The Kaan deal fits into this broader vision, enhancing Indonesia’s airpower and contributing to regional deterrence capabilities.

By investing in co-production, Indonesia is also laying the groundwork for a more self-reliant defense industry. This aligns with national policies aimed at reducing dependency on foreign arms and fostering high-tech industries domestically. The deal with Turkey, therefore, is not just about acquiring aircraft, it’s about building capacity and resilience.

Moreover, Indonesia’s strategic location and economic size make it a key player in Southeast Asia. A modernized air force could significantly bolster its role in regional security frameworks, including ASEAN-led initiatives and potential future coalitions in the Indo-Pacific.

Changing Dynamics in the Indo-Pacific

The Indo-Pacific region is witnessing a recalibration of defense relationships. As tensions rise in the South China Sea and other flashpoints, countries like Indonesia are seeking to diversify their military partnerships. This includes engaging with non-traditional suppliers like Turkey, which offer competitive pricing, flexible terms, and co-development opportunities.

Such deals also reflect a broader geopolitical shift, where emerging powers are forming new alliances and defense ecosystems outside the traditional Western-Russian dichotomy. Indonesia’s partnership with Turkey could be a harbinger of similar collaborations across the Global South.

As more countries seek to assert strategic autonomy, deals like the Kaan acquisition may become more common, reshaping the global defense landscape in the years to come.

Conclusion

Indonesia’s deal to acquire 48 Kaan fighter jets from Turkey is more than a defense procurement—it’s a strategic statement. It reflects Indonesia’s intent to modernize its military, diversify its defense partnerships, and build domestic industrial capabilities. For Turkey, the agreement is a validation of its defense sector’s growth and a catalyst for further exports.

The co-production element, regional implications, and technological advancements embedded in the Kaan platform make this deal a landmark in modern defense diplomacy. As both nations move forward with implementation, the world will be watching how this partnership unfolds and what it signals for the future of global defense cooperation.

FAQ

What is the Kaan fighter jet?
The Kaan is a fifth-generation multirole combat aircraft developed by Turkish Aerospace Industries, featuring stealth capabilities, AI integration, and advanced avionics.

Why did Indonesia choose the Kaan over other options?
Indonesia selected the Kaan to modernize its air force, replace aging F-16s, and benefit from co-production opportunities that align with its “Make in Indonesia” policy.

When will the jets be delivered?
Deliveries are expected to begin in 2028, with the first batch anticipated between 2028 and 2029.

What does the co-production component involve?
The deal includes technology transfer and local manufacturing of certain jet components in Indonesia, aimed at boosting its domestic aerospace industry.

Is this Turkey’s first major fighter jet export deal?
Yes, this is Turkey’s first export deal for its domestically produced fifth-generation fighter jet.

Sources: Associated Press,

Photo Credit: The War Zone

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Defense & Military

Peru Orders Fifth Leonardo C-27J Spartan Tactical Airlifter

Peru’s Air Force orders fifth Leonardo C-27J Spartan, the 100th sold worldwide, featuring upgraded Next Generation avionics for 2027 delivery.

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This article is based on an official press release from Leonardo.

On May 14, 2026, Italian aerospace and defense manufacturer Leonardo announced that the Peruvian Air Force (Fuerza Aérea del Perú, or FAP) has officially placed an order for a fifth C-27J Spartan multirole tactical airlifter. According to the company’s press release, this acquisition is a strategic move to bolster Peru’s air mobility and tactical transport capabilities across its notoriously challenging geographical landscapes.

This latest order represents a major commercial milestone for Leonardo, marking the 100th C-27J aircraft sold globally. The new airlifter, which is scheduled for delivery in 2027, will be the first in the Peruvian fleet to feature the manufacturer’s upgraded “C-27J Next Generation” configuration.

The aircraft will be assigned to Grupo Aéreo N°8, based in Callao, Lima. For a nation that relies heavily on aviation to bridge vast and difficult terrains, the expansion of the Spartan fleet underscores the platform’s critical role in both military logistics and civilian disaster response.

The “Next Generation” Spartan and Fleet Expansion

The fifth aircraft will introduce the C-27J Next Generation standard to the Peruvian Air Force. According to Leonardo’s specifications, this modernized variant features new avionics and aerodynamic improvements. These upgrades are specifically designed to increase fuel efficiency and enhance overall operational performance without requiring a complete redesign of the proven airframe.

While Leonardo’s official press release did not disclose the exact financial terms of the contracts, defense media estimates cited in industry research reports place the purchase price at approximately €57 million. This procurement was facilitated through Peru’s Armed Forces Procurement Agency.

Furthermore, the contract includes localized support capabilities. These offset benefits are expected to generate a return on investment for Peru’s domestic aviation and defense infrastructure, ensuring the FAP can maintain its high operational tempo.

Operational History: The Lifeline of the Andes

Peru has operated the C-27J Spartan since 2015, following initial orders placed in 2013 and 2015. Over the past decade, the FAP has built one of the most operationally active Spartan fleets in the world. The twin-turboprop aircraft, which features a maximum payload of approximately 11,500 kilograms and a range of around 1,400 nautical miles, is uniquely suited to the region.

“Peru’s topography spans coastal deserts, the dense Amazonian jungle, and Andean peaks exceeding 6,000 meters,” making reliable short-field airlift a basic condition for national connectivity.

Humanitarian and Medical Missions

According to official figures released by Leonardo in early 2026, the Peruvian C-27J fleet has logged nearly 16,000 flight hours since its introduction. During this time, the aircraft have transported approximately 240,000 passengers and 9,000 tons of cargo.

The fleet has been heavily deployed for humanitarian and disaster relief operations. Notable deployments include flying 59 missions to transport 130,000 kilograms of aid during the 2016 Ecuador earthquake, responding to historic wildfires in Chile in 2017, and providing relief during severe floods in northern Peru in 2019. Additionally, the FAP conducted close to 600 medical evacuation (MEDEVAC) missions, which proved crucial during the COVID-19 pandemic for moving critical patients under strict biosecurity conditions.

Firefighting and Tactical Transport

Beyond logistics and medical transport, the FAP utilizes the Spartan for specialized missions. For aerial firefighting, the aircraft employs the “Guardian” system by Caylym Technologies. This system allows the C-27J to drop biodegradable containers holding up to 264 gallons (1,000 liters) of water directly onto forest fires.

Tactically, the aircraft is routinely used to transport troops and classified equipment to challenging and remote regions, such as the Valley of the Apurímac, Ene, and Mantaro Rivers (VRAEM).

Broader Industry Context

AirPro News analysis

The South American defense market remains a consistently active sector for tactical transport aircraft. Nations such as Peru, Brazil, Colombia, and Chile rely heavily on these platforms to navigate the Amazon basin and the high-altitude Andean highlands. As older legacy fleets, such as aging C-130s and Antonovs, reach the end of their service lives, modern twin-turboprops like the C-27J and the Airbus C-295 are highly sought after for their cost-effectiveness, versatility, and ability to operate in extreme temperatures ranging from -55°C to +50°C.

For Leonardo, reaching the 100-aircraft sales mark is a significant public relations and financial victory for its Aeronautics division. It validates the platform’s longevity in a competitive market. The “Next Generation” modernization strategy appears to be successfully keeping the legacy airframe competitive against newer entrants, proving that incremental upgrades to avionics and aerodynamics can secure long-term international defense contracts.

Frequently Asked Questions (FAQ)

  • When will Peru receive its new C-27J Spartan?
    The fifth aircraft is scheduled for delivery to the Peruvian Air Force in 2027.
  • What is the “Next Generation” configuration?
    It is an upgraded variant of the C-27J that introduces new avionics and aerodynamic improvements designed to increase fuel efficiency and operational performance.
  • How much payload can the C-27J carry?
    The aircraft features a maximum payload capacity of approximately 11,500 kilograms and an operational range of around 1,400 nautical miles.
  • How many C-27J aircraft has Leonardo sold globally?
    With this order from Peru, Leonardo has officially reached 100 global sales for the C-27J platform.

Sources

Photo Credit: Leonardo

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EDGE Group Acquires 80 Percent Stake in Italy’s CMD Propulsion Specialist

EDGE Group to acquire 80% of Italian propulsion firm CMD, enhancing aerospace capabilities and expanding its European footprint by end of 2026.

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This article summarizes reporting by Reuters. This article summarizes publicly available elements and public remarks.

On May 14, 2026, the United Arab Emirates’ state-owned defense conglomerate, EDGE Group, announced an agreement to acquisitions an 80% controlling stake in Costruzioni Motori Diesel S.p.A. (CMD), an Italian propulsion specialist. According to reporting by Reuters, the acquisition marks a significant milestone in EDGE Group’s strategic push into the European defense and technology market, with the ultimate goal of establishing a centralized European propulsion hub.

The transaction, which will be funded internally by EDGE using its own resources, is expected to close by the end of 2026, pending customary closing conditions and regulatory approvals. While specific financial terms and the deal’s total valuation were not publicly disclosed, the agreement ensures that CMD’s current shareholders, the founding Negri family, will retain a 20% minority stake and continue to hold key managerial roles.

For EDGE Group, which was founded in 2019 and is wholly owned by the government of Abu Dhabi, this acquisition is the latest in a series of calculated moves to deepen its industrial ties within Italy and the broader European continent.

Strategic Synergies and Aero-Engine Focus

The immediate strategic focus of the acquisition centers on aviation. EDGE Group plans to leverage CMD’s 35 years of expertise in piston engines to immediately bolster its aero-engine portfolio. This is highly relevant to EDGE’s existing product lines, which heavily feature unmanned aerial vehicles (UAVs) and drones.

According to official statements summarized in the provided research, EDGE views CMD’s piston engine expertise as a direct alignment with its current technological needs. Beyond aviation, the UAE-based conglomerate plans to scale CMD’s manufacturing capabilities and accelerate research and development to create next-generation propulsion systems for military vehicles and marine vessels.

Expanding the European Footprint

EDGE Group has been actively building its presence in Italy over the past year. As noted in the background research, the company already operates a joint venture named MAESTRAL with Italian shipbuilding giant Fincantieri, has a planned joint venture with Leonardo, and signed a Memorandum of Understanding with the Federation of Italian Aerospace, Defence and Security Companies (AIAD) in late 2025.

In a public statement regarding the CMD acquisition, EDGE Group Managing Director and CEO Hamad Al Marar highlighted the strategic intent behind the purchase:

“By entering into this agreement with CMD, we are taking an important step in building a highly capable European propulsion hub…”

CMD’s Journey: From Chinese Ownership to UAE Partnership

Founded in 1989 and based in Atella, within the Basilicata region of Southern Italy, CMD operates six manufacturing plants and specializes in the design and prototyping of advanced propulsion systems. The company’s corporate timeline over the past decade provides fascinating context for this latest acquisition.

In 2017, the Chinese multinational Loncin Motor Co. Ltd. acquired a 67% stake in CMD. However, in a move to restore strategic autonomy, CMD’s founders, Giorgio and Mariano Negri, executed a reverse buyout in January 2026. This maneuver temporarily returned the company to 100% Italian ownership just months before the EDGE Group partnership was finalized.

Maintaining Local Roots

Despite selling a controlling 80% stake to the UAE conglomerate, the Negri family has structured the deal to ensure management continuity and local investment. CMD is expected to benefit from a significant capital injection from EDGE, granting the Italian firm access to new regional and international export markets while keeping its industrial center anchored in Southern Italy.

CMD Group CEO Mariano Negri expressed optimism about the new ownership structure in a public statement:

“Joining forces with EDGE represents a powerful industrial opportunity for CMD, our employees…”

AirPro News analysis

We view this acquisition as a textbook example of the UAE’s aggressive strategy to vertically integrate its defense supply chain. By acquiring a controlling stake in an established European propulsion manufacturer, EDGE Group bypasses years of foundational R&D required to develop reliable piston engines for its rapidly expanding drone portfolio. Furthermore, the rapid transition of CMD from Chinese majority ownership to Italian independence, and finally to UAE control within a five-month window, highlights the intense global competition for specialized defense and aerospace components. For Italy, the deal brings vital capital to the Basilicata region, though it underscores the ongoing trend of European defense-tech firms being absorbed by well-capitalized Gulf entities.

Frequently Asked Questions

What is EDGE Group?

EDGE Group is an advanced technology and defense conglomerate founded in 2019. It is wholly owned by the government of Abu Dhabi, United Arab Emirates, and produces weapons, drones, armored vehicles, and radar-systems.

When is the acquisition expected to close?

According to the reported timeline, the acquisition of the 80% stake in CMD is expected to close by the end of 2026, subject to regulatory and governmental approvals.

Will CMD’s founders remain with the company?

Yes. The Negri family will retain a 20% minority stake in CMD and will continue to hold key managerial roles within the organization.

Sources

Photo Credit: EDGE Group

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GE Aerospace Completes Assembly Readiness Review for XA102 Engine

GE Aerospace finishes Assembly Readiness Review for the XA102 adaptive cycle engine, advancing the USAF NGAP program with digital engineering.

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This article is based on an official press release from GE Aerospace.

GE Aerospace has successfully completed the Assembly Readiness Review (ARR) for its XA102 adaptive cycle engine. This milestone serves as a critical step forward in the U.S. Air Force’s Next Generation Adaptive Propulsion (NGAP) program, moving the advanced engine closer to a full system demonstration.

According to the official press release, the ARR validates that the XA102 engine’s design, manufacturing processes, and supply chain are progressing on schedule. With this review complete, the company anticipates being awarded the next phase of the program later this year.

The advancement of the XA102 engine represents a significant leap in military aircraft technology. The NGAP program aims to equip the Air Force’s future fighter fleet with the enhanced range, survivability, and thermal management capabilities necessary to operate in highly contested combat environments.

Digital-First Engineering and Manufacturing

A central component of GE Aerospace’s recent milestone is its reliance on a comprehensive digital engine model. In its press release, the company noted that it has transitioned away from traditional two-dimensional drawings in favor of a model-based definition approach.

This digital framework seamlessly integrates model-based manufacturing with model-based inspection. By utilizing this advanced methodology, GE Aerospace states that it can achieve improved accuracy and significantly accelerate production timelines. Furthermore, the company confirmed that all demonstrations associated with the model-based engine for the first phase of the NGAP program have been successfully completed.

Leadership Perspectives

Company leadership emphasized the importance of this digital integration in meeting the rigorous demands of modern military procurement and delivering reliable technology to the armed forces.

“With the completion of the Assembly Readiness Review, we are demonstrating the maturity of our XA102 engine design and the strength of our digital-first approach to developing next-generation propulsion systems. Our use of a fully integrated digital engine model, which spans design, manufacturing, and inspection, positions us to deliver advanced capability faster and with greater precision for the warfighter.”

— Dr. Steve “Doogie” Russell, vice president and general manager of Edison Works at GE Aerospace

The Next Generation Adaptive Propulsion (NGAP) Program

The U.S. Air Force’s NGAP program is designed to advance the technologies and manufacturing capabilities required to maintain air superiority in future conflicts. As combat environments become increasingly contested, the need for revolutionary propulsion systems grows paramount.

The technologies being developed under NGAP, including the XA102, are expected to provide next-generation fighter aircraft with critical upgrades. According to GE Aerospace, these improvements include extended range, heightened survivability, and advanced thermal management systems capable of supporting next-generation weapons and sensors.

Building on the XA100 Legacy

The development of the XA102 builds upon the foundation laid by its predecessor, the XA100, and leverages GE Aerospace’s more than 100 years of partnership with the U.S. military. The company highlighted that the XA100 engines have already completed multiple successful rounds of testing, which served to mature adaptive engine technologies. The XA102 represents the next evolution in this lineage, focusing on delivering enhanced capabilities while maintaining strict standards for affordability and sustainability.

AirPro News analysis

We note that the successful completion of the ARR for the XA102 engine underscores a broader aerospace industry shift toward digital engineering in defense contracting. By proving that a fully integrated digital engine model can meet the stringent requirements of the U.S. Air Force’s NGAP program, GE Aerospace is setting a precedent for future rapid-prototyping and production. The emphasis on thermal management is particularly notable; future fighter aircraft will require immense cooling capabilities to support directed energy weapons and advanced electronic warfare suites, making adaptive cycle engines a foundational requirement rather than an optional upgrade.

Frequently Asked Questions

What is the XA102 engine?
The XA102 is an advanced adaptive cycle engine being developed by GE Aerospace for the U.S. Air Force’s Next Generation Adaptive Propulsion (NGAP) program.

What does the Assembly Readiness Review (ARR) signify?
The completion of the ARR validates that the engine’s design, manufacturing processes, and supply chain are mature and on schedule for the next phase of development.

How does digital engineering benefit the XA102 program?
By replacing traditional two-dimensional drawings with a fully integrated digital engine model, GE Aerospace can combine model-based manufacturing and inspection to improve accuracy and accelerate production timelines.

Sources

Photo Credit: GE Aerospace

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