Jakarta. Indonesia will build a China-backed ammunition factory following high-level defense talks, according to a minister, with the plant’s operations likely to begin by 2027.

Foreign Minister Sugiono and Defense Minister Sjafrie Sjamsoeddin held a “2+2 format” meeting with their Chinese counterparts Wang Yi and Dong Jun in Jakarta on Friday. Speaking to the press later that day, Sjafrie revealed that there were “no talks” about Jakarta possibly buying the China-made Chengdu J-10 fighter jets, contrary to expectations. 

“We will work on ammunition manufacturing. The cooperation covers missiles and rockets, among others. They [China] will transfer the technology, so we can jointly establish this factory in Indonesia,” Sjafrie said.

He confirmed that the state defense firm Pindad would take part in the joint venture. State-owned electronics maker Len Industri will also be involved in the electrical systems. Sjafrie did not mention the name of the Chinese firm that would take part in the domestic production. 

A day earlier, Adrianus Prima, a defense expert from Lembaga KERIS, named the J-10 as an arms deal that Jakarta might wish to consider, especially if Beijing “sweetens the deal with a comprehensive package that includes air-to-air missiles”. He told the Jakarta Globe that it’d be best for Jakarta to also “make sure its procurement deals include technology transfers”.

In recent years, Jakarta has signaled its intention to buy the J-10. In October 2025, Sjafrie remarked that the J-10s “would soon fly over Indonesian skies”, but later rowed back on the plan. 

China accounted for around 5.6% of the global arms exports from 2021 to 2025, putting it in fifth place after Germany. Under Prabowo Subianto, Indonesia’s military upgrades are going into high gear, as seen in the government’s recent defense deals, including a contract to buy 48 units of Turkish-made KAAN fighters.

The world's richest nation is also among the top investors in Indonesia. The combined investment inflows from mainland China and Hong Kong amounted to $11.5 billion in the first half of 2026, government data showed.

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