Indonesia Signs Letter of Intent for M-346 Block 20 Jets at Singapore Airshow

On February 4, 2026, Leonardo S.p.A. announced the signing of a Letter of Intent (LoI) with the Ministry of Defence of the Republic of Indonesia and local industrial partner PT ESystem Solutions. The agreement, formalized at the Singapore Airshow, outlines the potential acquisition of the M-346 F “Block 20” aircraft for the Indonesian Air-Forces.

According to the official press release from Leonardo, this strategic move aims to replace Indonesia’s aging fleet of BAE Systems Hawk 109/209 aircraft. The acquisition is designed to fulfill a dual requirement: providing advanced Lead-In Fighter Training (LIFT) for pilots transitioning to new 4.5 and 5th-generation fighters, and serving as a capable light combat platform for air policing duties.

The inclusion of PT ESystem Solutions as a signatory highlights Indonesia’s focus on localization. The agreement includes provisions for establishing local support, maintenance, overhaul, and training infrastructure, ensuring that the Indonesian defense industry plays an active role in the lifecycle of the new fleet.

The M-346 Block 20: Bridging Training and Combat

The aircraft at the center of this agreement is the M-346 F “Block 20,” an advanced variant of Leonardo’s established trainer jet. While the standard M-346 is widely used for pilot training, the Block 20 configuration is specifically engineered to bridge the gap between training environments and modern combat operations.

In its statement, Leonardo emphasized that the Block 20 variant is equipped to handle both advanced training and light attack roles. Key technical upgrades cited in the announcement and industry reports include:

• Advanced Cockpit Environment: The aircraft features a Large Area Display (LAD) and a low-profile Head-Up Display (HUD), designed to mimic the human-machine interface found in frontline fighters like the Dassault Rafale and F-35.
• AESA Radar: The integration of an Active Electronically Scanned Array (AESA) radar provides superior target tracking and engagement capabilities compared to mechanical radars found on older trainers.
• Tactical Connectivity: A Link 16 tactical data link ensures the aircraft can operate within network-centric warfare environments.
• Combat Systems: The platform supports a Helmet-Mounted Display (HMD) for targeting and carries a suite of electronic countermeasures (ECM) for survivability.

“The M-346 Block 20 is the latest standard… specifically designed to bridge the gap between training and modern combat operations.”

, Leonardo Press Release

Strategic Context and Modernization

This agreement comes at a critical time for the Indonesian Air Force, which is currently executing its “Minimum Essential Force” (MEF) modernization roadmap. With the arrival of the first batch of Dassault Rafale fighters in January 2026, the TNI-AU faces an urgent need to upgrade its pilot training pipeline.

AirPro News Analysis

The selection of the M-346 Block 20 appears to be a direct response to the technological leap required to operate the Rafale. The legacy Hawk 109/209 fleet, while reliable for decades, lacks the avionics and systems management complexity necessary to prepare pilots for 4.5-generation warfare. By acquiring a platform that mimics the Rafale’s cockpit and sensor fusion, Indonesia can offload expensive flight hours from its frontline fighters to the more cost-effective M-346.

Furthermore, the dual-role capability of the M-346 F allows the TNI-AU to maintain a light attack capability for counter-insurgency or border patrol missions without deploying its heavy fighters. This mirrors a regional trend, as neighboring air forces like Singapore also operate the M-346, potentially opening doors for improved interoperability and shared training standards within ASEAN.

Industrial Partnership and Local Content

A significant component of the LoI is the involvement of PT ESystem Solutions. According to corporate registry data and industry reports, the South Jakarta-based company will act as the local industrial partner. Led by CEO Habib Boukharouba, a former French Air Force pilot, the firm is tasked with facilitating the deal and managing the localization of support services.

This structure aligns with Indonesia’s Law No. 16/2012, which mandates local industry participation in foreign defense procurement. By securing domestic maintenance and overhaul capabilities, Indonesia aims to reduce dependency on foreign supply chains for routine operations.

Frequently Asked Questions

What is the M-346 Block 20?

The M-346 Block 20 is an upgraded version of Leonardo’s advanced jet trainer. It features an AESA radar, Large Area Display cockpit, and enhanced weapons capabilities, allowing it to serve as both a trainer and a light combat aircraft.

Why is Indonesia replacing the BAE Hawk?

The BAE Systems Hawk 109/209 fleet is aging and lacks the modern avionics required to train pilots for Indonesia’s new Dassault Rafale fighters. The M-346 offers a digital cockpit and systems that better replicate modern combat scenarios.

Who is PT ESystem Solutions?

PT ESystem Solutions is an Indonesian defense consultancy and brokerage firm. In this agreement, they serve as the local partner responsible for facilitating the acquisition and managing local maintenance and support infrastructure.

Sources

• Leonardo Press Release