Turkey's defence sector, including the famous Bayraktar drones, accounts for a significant share of the country's export revenues.
"As part of the agreement signed with our friendly and brotherly country, Indonesia, 48 Kaan (fighter jets) will be produced in Turkey and exported to Indonesia," Erdogan wrote on X.
The contract, valued at 10 billion dollars, includes the production and delivery of the Kaan fighter jets to Indonesia over a ten-year period, according to Turkish media.
The deal also includes a technology transfer to Indonesia, Turkish broadcaster TRT Haber reported.
"Indonesia's local capabilities will also be utilised in the production of Kaan" jets, the Turkish head of state said on X, without providing further details.
The fifth-generation fighter jet Kaan, produced by state-run Turkish Aerospace Industries (TAI), made its first flight in February 2024.
It was then equipped with the same type of engines as those of the F-16 fighter jets but Turkey ultimately plans to equip Kaan jets with a locally produced engine.
In 2024, Turkey's defence industry export revenues reached $7.1 billion, an increase of $1.6 billion compared with 2023.
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