Turkish drone manufacturer Baykar has entered into a joint venture agreement with Indonesia’s defense holding company, Republikorp, to establish a drone manufacturing facility in the Southeast Asian country.
The deal was signed on the sidelines of Turkish President Recep Tayyip Erdogan’s official visit to Indonesia as part of a three-nation Asia tour, which marked a significant step forward in strengthening defense ties between the two nations. This collaboration aims to ramp up the production of unmanned aerial vehicles (UAVs), including Baykar’s iconic Bayraktar drones.
The agreement to set up a drone factory in Indonesia was signed by Baykar CEO Haluk Bayraktar and Republikorp Chairman Norman Joesoef. The joint venture deal was witnessed by Turkish President Erdogan and Indonesian President Prabowo Subianto, who expressed strong support for expanding defense cooperation between Indonesia and Turkey. “We have agreed to ramp up joint production and defense industry cooperation,” Prabowo said during the signing ceremony.
Baykar, known for its innovative drone technology, is already a prominent player in the global defense sector. The company’s Bayraktar TB2 drone has garnered international recognition, especially after its successful deployment by the Ukrainian military against Russian forces. The addition of a UAV manufacturing plant in Indonesia is expected to strengthen Turkey’s foothold in the Southeast Asian market and further solidify Baykar’s position as a leader in drone technology.
Turkiye – A Rising Power in the Drone Industry
Baykar’s foray into Indonesia is part of a broader trend of expanding global drone dominance. With a reported 65% share of the global drone export market, Turkey, under Baykar’s leadership, has rapidly become a major supplier of military drones. The company holds nearly 60% of this market share alone, outpacing its closest U.S. competitor by three times. The Bayraktar TB2, in particular, has been sold to multiple countries including Kuwait, Saudi Arabia, and Qatar, as well as several African nations.
In addition to the Bayraktar TB2, Baykar is also developing Türkiye’s first unmanned fighter jet, the Kızılelma, which made its maiden flight in late 2022 and is now in mass production. Furthermore, Baykar’s Bayraktar TB3 drone, tailored for Turkey’s aircraft carriers, has made history as the first drone to successfully take off and land on a short-runway warship. The TB3’s foldable wings make it the first of its kind in the world.
Baykar CEO Haluk Bayraktar expressed confidence in the success of the joint venture, emphasizing the potential for increased collaboration between Turkish and Indonesian defense industries. The joint venture aligns with Turkey’s broader defense strategy to foster international partnerships while promoting the development and export of cutting-edge military technology.
Turkey and Indonesia strengthen defense ties
This new agreement is part of a broader effort to deepen defense and security cooperation between Turkey and Indonesia. Both nations have shared interests in countering regional security challenges, with Indonesia focusing on modernizing its military forces. During a joint press conference following the signing, President Erdoğan reiterated his commitment to enhancing bilateral relations. “We will work toward increasing our annual bilateral trade to $10 billion with balanced values,” Erdoğan stated.
The establishment of the UAV factory is also a clear indication of Turkey’s growing influence in Southeast Asia, especially in light of Indonesia’s ongoing military modernization. The factory’s exact location and the UAV models to be produced are yet to be disclosed, but Baykar’s portfolio includes a wide array of drones capable of combat and surveillance missions, including the highly acclaimed Bayraktar TB2.
Indonesia, for its part, has made strides in developing joint defense projects with Turkish companies. The country is already collaborating with Turkish arms manufacturer FNSS on tank production and has expressed interest in further collaboration in various sectors of the defense industry.
Baykar-Republikorp partnership
The Baykar-Republikorp joint venture comes at a time when military drones have become an essential component of modern warfare. The ongoing conflict in Ukraine has underscored the strategic importance of UAVs, which have proven instrumental in countering enemy artillery and infantry. As the demand for advanced drones continues to rise, this partnership signals the growing role of unmanned aerial technology in global defense strategies.
Additionally, Turkey’s growing drone export capabilities could provide Indonesia with a technological edge as it seeks to modernize its military. Indonesia has already shown interest in the Bayraktar TB2 for its own forces, and the establishment of a local manufacturing facility could further deepen its reliance on Turkish technology.
As both nations move forward with their strategic cooperation, the Baykar-Republikorp deal is set to redefine the defense landscape in Southeast Asia, marking the beginning of a new era of collaboration between Turkey and Indonesia.