Baykar, a globally recognized Turkish drone manufacturer, on Wednesday signed a joint venture agreement with Indonesian defense company Republikorp to establish an unmanned aerial vehicle manufacturing facility in the Southeast Asian country.
The deal was among a dozen agreements signed on the sidelines of President Recep Tayyip Erdoğan's visit to Indonesia aimed at strengthening economic and defense ties between the two Muslim-majority nations.
The collaboration aims to enhance Indonesia's manufacturing capabilities and covers the coproduction of Bayraktar TB3 and Akıncı drones, which Baykar will export to the country, reports said.
The agreement was signed following a meeting between Erdoğan and his Indonesian counterpart Prabowo Subianto.
Southeast Asia's largest economy was Erdoğan's second stop in a four-day tour that also includes Malaysia and Pakistan. He was scheduled to head on to Pakistan later on Wednesday.
Other agreements included memorandums of understanding covering various sectors, including energy, mining, agriculture, trade, defense, communications, and education.
Erdoğan pledged his country would invest in the development of Indonesia's new capital on Borneo island.
Indonesia and Türkiye have built an increasingly close relationship in recent years, and the two leaders previously met in Ankara last July when Subianto was still president-elect and defense minister. Subianto pledged to "elevate defense cooperation and other strategic fields for mutual benefit."
The two countries signed a defense cooperation agreement in 2010, under which Indonesia's state-run arms producer Pindad and Türkiye's FNSS jointly developed a new model of medium tank. In 2023, the two countries inked a plan of action for joint military exercises and defense industry cooperation.
The same year, Indonesia purchased 12 Turkish drones worth around $300 million in a push to upgrade its aging military.
Baykar has become the face of Türkiye's defense and aerospace sector and is one of the most prolific drone exporters worldwide.
Its Bayraktar TB2 combat drones gained prominence globally after being used by Ukraine's military against Russian forces as well as in campaigns in Azerbaijan and North Africa.
The Bayraktar TB2 bears the title of the most-exported combat drone in the world, according to company officials.
Baykar is the nation's top defense exporter. Its sales stood at $1.8 billion in 2024.
The company has signed agreements with 34 countries for its Bayraktar TB2 and 10 nations for its heavy Akıncı combat drones.
Baykar is also developing Türkiye's first unmanned fighter jet, Kızılelma, which made its maiden flight in late 2022 and recently launched its mass production.
Its Bayraktar TB3 drone, tailored for the country's first aircraft carrier, last month became the first in the world to successfully take off and land on a short-runway warship.
The TB3 is the first of its kind, boasting the ability to fold its wings. It made its maiden flight in late October last year.
Türkiye dominates 65% of the global drone export market, according to a report by the U.S.-based think tank Center for a New American Security,
And Baykar alone is said to hold nearly 60% of the market – three times the size of its closest U.S. competitor.
