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Indonesia Inks $2B Defense and Military Hospital Deals

Agnes Valentina Christa
June 11, 2025 | 6:41 pm
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President Prabowo Subianto, third left, visits the booth of Chinese defense company Norinco Group during the Indo Defence Expo and Forum at the Jakarta International Expo in Kemayoran, Central Jakarta, Wednesday, June 11, 2025 (B-Universe Photo/Joanito De Saojoao)
President Prabowo Subianto, third left, visits the booth of Chinese defense company Norinco Group during the Indo Defence Expo and Forum at the Jakarta International Expo in Kemayoran, Central Jakarta, Wednesday, June 11, 2025 (B-Universe Photo/Joanito De Saojoao)

Jakarta. Indonesia’s Ministry of Defense signed 27 cooperation agreements worth a combined Rp 33 trillion (approx. $2 billion) on Wednesday to procure defense equipment and upgrade military hospitals, in a move to modernize the country’s armed forces.

The agreements were signed during the Indo Defense 2025 Expo & Forum in Jakarta and witnessed directly by President Prabowo Subianto, who described the deals as a concrete demonstration of the government’s commitment to building a resilient and modern national defense system.

The projects include the renovation of 20 military hospitals operated by the Indonesian National Armed Forces (TNI), as well as the acquisition and development of defense-related goods and services through both state-owned and private defense companies.

Among the participating companies are key state-owned defense firms such as PAL Indonesia, Dirgantara Indonesia, Pindad, LEN Industri, and Dahana, along with private sector partners including Republik Defens Indonesia, Tesco Indomaritim, Aggiomultimex International Grup, and Ellips Projects UK.

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In a separate agreement, Indonesia also signed a memorandum of understanding with Turkey for the procurement of fifth-generation fighter jets. The MoU was inked by Indonesian Defense Minister Sjafrie Sjamsoeddin and Turkish Defense Industry Secretary Haluk Görgün.

“Defense is one of the foundations of national independence and prosperity,” President Prabowo said during the ceremony. “Indonesia seeks to be a good neighbor -- near, intermediate, and distant -- and while war is always our last resort, we will never retreat if it becomes necessary.”

Prabowo also addressed representatives from 55 countries attending the opening of the expo, calling for deeper cooperation to promote global peace and shared prosperity.

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