INTRODUCTION

Indonesia and Turkey are poised to transform their longstanding historical ties—dating back to the Ottoman Navy’s 16th-century support for the Aceh Sultanate and reinforced through mutual humanitarian aid during the 2004 Banda Aceh tsunami and the 2011 Van earthquake—into a multidimensional economic partnership. The High-Level Strategic Cooperation Council (HLSCC) summit held in Bogor in February 2025 marked a turning point in bilateral relations. During the summit, the two countries laid out an ambitious and forward-looking roadmap through the signing of 13 memoranda of understanding across key areas such as defense industry, energy and mining, higher education, healthcare, agriculture, investment promotion, joint industrial committees, media and communication, religious services, and trade.

The parties declared their intention to raise bilateral trade volume to USD 10 billion by 2028, finalize the Comprehensive Economic Partnership Agreement (CEPA) within 2025, and establish mutually beneficial strategic cooperation particularly in high technology, automotive, and green energy supply chains.

In the first article of this series, as representatives of Turkey and Indonesia, we will focus on the the 2025–2028 action plan. By exploring the expected economic gains from CEPA’s implementation, identifying sectoral opportunities, and addressing regulatory and geopolitical barriers, we aim to highlight the potential of the emerging cooperation model between Indonesia and Turkey.

KEY POTENTIAL AREAS and 3-YEAR ROAD MAP

1. Trade and Investment Expansion

The High-Level Strategic Cooperation Council convened in Bogor on 12 February 2025 introduced a qualitative and quantitative transformation in Turkey–Indonesia economic relations. The memorandum of understanding signed by Turkish Trade Minister Ömer Bolat and his Indonesian counterpart Budi Santoso secured long-term institutional cooperation in areas such as the development of digital trade capabilities for SMEs, joint promotional campaigns, and simplification of customs procedures.

A cornerstone of this transformation is the Comprehensive Economic Partnership Agreement (CEPA), which is expected to be finalized within 2025. With CEPA, the two countries seek to shift their traditionally raw-material-based trade structure toward higher value-added sectors, building a new trade ecosystem around high technology, the automotive industry, and defense exports. At the same time, Turkey’s advanced R&D capacity in renewable energy and battery technologies is set to be integrated with Indonesia’s vast nickel and strategic mineral resources to facilitate joint energy and mining initiatives.

Following CEPA’s entry into force, both trade ministries plan to develop joint access models for SMEs through digital marketplaces. Trade offices to be established in Istanbul and Indonesia’s new capital Nusantara will offer legal, logistical, and technical guidance to businesses. Strategic investment programs will also be launched in sectors such as defense electronics, electric vehicle supply chains, and green energy production.

In 2026 and 2027, sector-focused business forums will bring together private sector actors, accelerating bilateral investment flows. Turkish companies will expand their presence in the Indonesian market with high-value exports, while Indonesia will gain a strategic foothold in regional supply chains by integrating into Turkish firms’ networks and leveraging access to the broader ASEAN market.

This multilayered trade and investment expansion strategy—anchored by CEPA—will not only strengthen macroeconomic indicators but also contribute tangibly to sustainable growth, digital transformation, and technology transfer. The next three years are expected to create new employment opportunities, facilitate access to broader markets, and solidify the long-term strategic positioning of both countries.

2. Defense and Technology Collaboration

In recent years, defense cooperation between Turkey and Indonesia has rapidly deepened, evolving into a strategic partnership. The agreements signed during the 2025 Bogor Summit laid the foundation for a multifaceted collaboration encompassing land, air, and naval defense systems. This partnership aims not only to strengthen the defense capabilities of both nations but also to contribute to regional security architecture.

In the field of armored land vehicles, Turkish company FNSS and Indonesia’s Pindad have jointly completed the design of the “Kaplan” armored combat vehicle. Prototype production is scheduled to begin in 2025, with initial deliveries expected by the end of 2026 to the Indonesian Army. Additionally, under the “Kaplan MT” medium tank project initiated in 2019, 18 units are being co-produced—10 in Turkey and 8 in Indonesia—representing a tangible example of the deepening production-based defense partnership between the two nations.

In the naval domain, Turkey and Indonesia have expanded their cooperation with the construction of the FACM-70 fast attack missile boat, ordered by the Indonesian Navy. The steel-cutting ceremony for this vessel was recently held in Turkey, signifying progress in joint naval defense manufacturing.

In the air defense sector, cooperation has reached a broader scale, particularly in unmanned aerial vehicle (UAV) technologies. Indonesia has ordered 12 ANKA UAVs from Turkey—six of which will be produced domestically in Turkey, while the remaining six will be assembled in Indonesia. Furthermore, Turkish Aerospace Industries (TUSAŞ) and Indonesia’s PT Dirgantara Indonesia (PTDI) have established a strategic partnership through a joint venture aimed at UAV development, production, and marketing. This initiative is designed to boost Indonesia’s domestic UAV manufacturing capacity and enhance its technological independence in critical areas such as border security, maritime surveillance, and disaster management.

In parallel, Baykar and Indonesian defense firm Republikorp have signed a landmark agreement to establish a UAV production facility in Indonesia. The partnership, structured through a joint venture company (JVC), will oversee the local production, assembly, and maintenance of 60 sets of Bayraktar TB3 medium-altitude long-endurance UAVs and 9 sets of Bayraktar Akıncı high-altitude long-endurance UAVs. Baykar will provide expertise, technology transfer, and training support, while Republikorp will lead infrastructure development, certification of local personnel, and integration of UAVs into Indonesia’s defense ecosystem.

A second strategic agreement has been signed between Turkish defense giant Roketsan and Republikorp for the localization of advanced guided missile systems in Indonesia. The collaboration focuses particularly on the domestic production of anti-ship cruise missiles and multi-platform missile systems. It includes a broad agenda covering technology transfer, workforce development, and the establishment of a robust local supply chain.

These developments are expected to significantly enhance Turkey’s defense exports to the ASEAN region via Indonesia while helping Indonesia to fortify its domestic defense ecosystem. Between 2025 and 2028, the defense and technology collaboration is anticipated to contribute not only to regional security but also to the global positioning of both countries in the high-value defense technologies landscape.

3. Infrastructure and Energy Projects

Potential:

• Turkey’s construction expertise can support Indonesia’s infrastructure projects, such as the new capital Nusantara.

4. Education and People-to-People Ties

Potential:

• Strengthen academic exchanges to foster innovation in STEM fields.

Early Benefits (2025–2028)

• Economic Growth: CEPA and infrastructure projects could add 2% to Indonesia’s GDP and create 50,000 jobs in Turkey by 2028.
• Defense Security: The Baykar factory will enhance Indonesia’s defense capacity while positioning Turkey as a regional defense hub.
• Energy Transition: Joint renewable projects could reduce Indonesia’s carbon emissions by 15% by 2030.

Challenges and Mitigation

• Regulatory Difference : Streamline visa and investment regulations to ease business operations.
• Geopolitical Tensions: Align foreign policies on issues like Palestine and Ukraine to maintain diplomatic harmony.

CONCLUSION

The strategic partnership taking shape between Turkey and Indonesia represents more than a bilateral framework serving the interests of two nations; it symbolizes an emerging multipolar balance between Asia and Europe. The concrete steps taken across diverse domains—such as defense, energy, infrastructure, trade, technology, and education—demonstrate that this cooperation is grounded in a visionary, institutional, and sustainable foundation.

The period from 2025 to 2028 will mark the implementation phase in which the early benefits of this partnership become visible through systematic and measurable outcomes. With the entry into force of the CEPA, a structural transformation in trade is expected, while defense cooperation will be reinforced through joint production and technology transfer. At the same time, infrastructure and energy projects are anticipated to progress in alignment with sustainable development goals.

Potential challenges—ranging from regulatory differences and geopolitical tensions to institutional mismatches—can be managed through mutual political will, coordinated mechanisms, and shared values. If addressed effectively, these efforts could elevate the Turkey–Indonesia partnership into a regional model for strategic collaboration.

Turkey and Indonesia have clearly expressed their commitment to transforming historical solidarity into forward-looking strategic cooperation. This commitment stands not only as a promising framework for both nations but also as a meaningful contribution to global development, regional stability, and technological equity.

Stay Tuned

This article is the first in a series exploring Indonesia and Turkey’s strategic partnership.

REFERENCES

1. Daily Sabah: From History to Strategy: Strengthening 75 Years of Indonesia-Turkiye Cooperation
   Link
2. Anadolu Agency: Turkiye and Indonesia Sign 13 Agreements
   Link
3. ILKHA: Indonesia-Türkiye Relations Mark 75 Years with Strategic Partnership
   Link
4. Asia Today: New Chapter of Indonesia-Turkiye Partnership
   Link
5. https://ticaret.gov.tr/haberler/turkiye-ile-endonezya-arasinda-ticarette-isbirliginin-gelistirilmesi-icin-anlasma-imzalandi
6. https://baykartech.com/en/press/baykar-the-global-leader-in-ucav-exports-achieves-18-billion-in-exports-in-2024/
7. https://m5dergi.com/savunma-haberleri/turkiye-ile-endonezya-arasinda-imzalanan-savunma-sanayii-anlasmalarinin-detaylari-ortaya-cikti/
8. https://www.iletisim.gov.tr/turkce/dis_basinda_turkiye/detay/turkiye-ve-endonezya-savunma-sanayii-is-birligini-guclendiriyor
9. https://www.turkuazhaberajansi.com/turkiye-endonezya-arasinda-ekonomi-ticaret-ve-yatirim-alaninda-isbirliginin-gelistirilmesi

 

DISCLAIMER :

This disclaimer applies to the publication of articles by Anggraeni and Partners. By accessing or reading any articles published by Anggraeni and Partners, you acknowledge and agree to the terms of this disclaimer:

• During the preparation of this work, the author(s) may use AI-assisted technologies for readability. After using this tool/service, the author(s) reviewed and edited the content as needed for the purposes of the publication.

• No Legal Advice: The articles published by Anggraeni and Partners are for informational purposes only and do not constitute legal advice. The information provided in the articles is not intended to create an attorney-client relationship between Anggraeni and Partners and the reader. The articles should not be relied upon as a substitute for seeking professional legal advice. For specific legal advice tailored to your individual circumstances, please consult a qualified attorney.

• Accuracy and Completeness: Anggraeni and Partners strive to ensure the accuracy and completeness of the information presented in the articles. However, we do not warrant or guarantee the accuracy, currency, or completeness of the information. Laws and legal interpretations may vary, and the information in the articles may not be applicable to your jurisdiction or specific situation. Therefore, Anggraeni and Partners disclaim any liability for any errors or omissions in the articles.

• No Endorsement: Any references or mentions of third-party organizations, products, services, or websites in the articles are for informational purposes only and do not constitute an endorsement or recommendation by Anggraeni and Partners. We do not assume responsibility for the accuracy, quality, or reliability of any third-party information or services mentioned in the articles.

• No Liability: Anggraeni and Partners, its partners, attorneys, employees, or affiliates shall not be liable for any direct, indirect, incidental, consequential, or special damages arising out of or in connection with the use of the articles or reliance on any information contained therein. This includes but is not limited to, loss of data, loss of profits, or damages resulting from the use or inability to use the articles.

• No Attorney-Client Relationship: Reading or accessing the articles does not establish an attorney-client relationship between Anggraeni and Partners and the reader. The information provided in the articles is general in nature and may not be applicable to your specific legal situation. Any communication with Anggraeni and Partners through the articles or any contact form on the website does not create an attorney-client relationship or establish confidentiality.

• By accessing or reading the articles, you acknowledge that you have read, understood, and agreed to this disclaimer. If you do not agree with any part of this disclaimer, please refrain from accessing or reading the articles published by Anggraeni and Partners.