Boeing has made a substantial offer to produce the majority of its advanced F-15EX fighter aircraft within Indonesia, should the country proceed with a major purchase of the jets. The move, announced by Boeing’s Southeast Asia president Penny Burtt in Jakarta on 15 April 2025, signals a shift in defence procurement strategies, with increased emphasis on local manufacturing and technology sharing.
Under the proposal, up to 85% of the aircraft would be produced domestically, a significant departure from traditional international arms sales. Boeing’s commitment reflects growing expectations among buying nations for industrial collaboration and technology transfer as part of high-value defence contracts.
Indonesia is currently considering its options for modernising its ageing air force fleet, and Boeing’s offer could influence the direction of this strategy. It also brings wider questions into focus, including regional security dynamics and the risks involved in sharing advanced military technology.
The F-15EX: An evolved air superiority platform
The F-15EX, also known as the Eagle II, represents the latest evolution of the long-established F-15 fighter. Originally introduced in the 1970s, the platform has been continuously upgraded to remain a leading contender in air combat.
Designed to replace older F-15C/D models within the U.S. Air Force, the F-15EX incorporates a digital fly-by-wire control system, advanced electronic warfare capabilities, and an open architecture that enables quick integration of future technologies. Capable of speeds up to Mach 2.5 and carrying a payload of 29,500 pounds across 23 weapon stations, it provides both air-to-air and air-to-ground capabilities. Its operational range is further extended by conformal fuel tanks, and it is compatible with hypersonic weapons.
Unlike fifth-generation stealth aircraft such as the F-35, the F-15EX prioritises performance, payload, and cost-effectiveness, offering a practical balance for countries seeking a powerful yet reliable platform.
Indonesia’s modernisation plans
Indonesia has shown increasing interest in acquiring the F-15EX—locally designated as the F-15IDN—as part of its broader defence modernisation agenda. The country’s current air force comprises a mixed fleet, including Russian-built Su-27s and Su-30s, British Hawk 209s, and older American F-5 aircraft, many of which are nearing the end of their service lives.
A memorandum of understanding signed in August 2023 outlines a potential deal for 24 F-15EX fighters, estimated to be worth up to $13.9 billion. The agreement was made during a visit by then-Defence Minister Prabowo Subianto to Boeing’s facility in St. Louis.
However, the deal is yet to receive final government approval and could be affected by broader economic and political factors, including recently imposed U.S. tariffs on Indonesian imports, which may complicate financing arrangements.
Local production as a strategic offer
Boeing’s proposal aligns with Indonesia’s defence procurement policies, particularly its IDKLO (Indigenous Defence Capability and Offset) framework, which encourages the development of local defence industry capacity.
Under this arrangement, Boeing would work with local firms, including PT Dirgantara Indonesia, to build components, support maintenance operations, and provide training. The company says this approach is in line with Indonesia’s national defence priorities and broader industrial ambitions.
This offer reflects a broader trend in global defence deals. Nations such as India and Turkey have increasingly demanded domestic manufacturing rights and local content inclusion in return for procurement contracts. While this offers potential for economic and technological growth, it also carries long-term implications for manufacturers that must weigh the benefits of market access against the risks of transferring proprietary knowledge.
Strategic context and regional dynamics
Indonesia’s interest in diversifying its defence partners is part of a larger strategy to reduce reliance on any single supplier. In addition to discussions with Boeing, the country has signed a $8.1 billion contract for French Rafale jets and is participating in South Korea’s KF-21 Boramae fighter programme.
Russia’s Su-35 also remains a potential option, despite challenges related to maintenance and international sanctions. This multi-supplier approach gives Indonesia more flexibility while reinforcing its longstanding policy of non-alignment.
The F-15EX’s capabilities are particularly relevant to Indonesia’s security needs, especially in protecting its vast maritime territory. Equipped with advanced sensors and anti-ship weapons, the jet could support air patrols near the Natuna Islands and other sensitive areas, where tensions with China have risen in recent years.
Compared to alternatives, the F-15EX offers a unique combination of range, payload, and operational readiness. While the Rafale is highly capable, it has a shorter range and carries a smaller payload. The Su-35 is comparable in performance but poses logistical and political concerns. Meanwhile, China’s J-20 stealth fighter is not currently available for export.
A proven platform with modern upgrades
The F-15 family has a strong operational history, with over 100 air-to-air victories and no confirmed losses in combat. The F-15EX builds on this record with enhanced systems, including AESA radar, a glass cockpit, and support for next-generation weaponry.
For Indonesia, this track record offers reassurance compared to newer platforms like the KF-21, which is still under development, or the Russian Su-57, which has seen limited deployment.
Challenges and opportunities ahead
Despite its strong offer, Boeing faces hurdles. Production of the F-15EX has experienced delays, with limited deliveries to the U.S. Air Force as of early 2025. The company is also contending with financial pressure, including a reported $3.8 billion loss in late 2024 and continued scrutiny of its commercial aviation business.
The Indonesia deal could provide a significant boost to Boeing’s defence operations in the Indo-Pacific. However, external factors—such as U.S. trade policy—may influence how and when the agreement progresses. In response to tariff tensions, Indonesia has proposed purchasing $19 billion worth of U.S. goods to help balance trade, potentially smoothing the path for the F-15EX deal.
Beyond the commercial aspects, the deal could have strategic implications for the region. If finalised, it may deepen U.S.-Indonesia defence ties while also prompting other ASEAN countries to accelerate their own air force modernisation plans. Neighbouring countries such as Vietnam, Malaysia, and Singapore are likely to monitor developments closely.
Industrial capacity and local impact
While the offer of 85% local production is ambitious, questions remain about Indonesia’s readiness to meet such a commitment. PT Dirgantara Indonesia has experience producing aircraft components and smaller platforms, but scaling up to the F-15EX’s level would require significant investment in workforce development, infrastructure, and quality control.
Critics argue that the localisation pledge may be difficult to fully realise. During the Jakarta briefing, Burtt noted that Indonesia had not yet made detailed requests regarding industrial terms, suggesting the localisation strategy is still under development.
For Indonesia, success will depend on converting Boeing’s offer into tangible benefits for its domestic aerospace sector. If executed effectively, the partnership could help establish Indonesia as a regional hub for defence manufacturing.
Boeing’s bold gamble and Indonesia’s strategic choices
Boeing’s proposal represents a strategic shift in how major defence firms engage with emerging markets. By offering local production and long-term industrial cooperation, the company is responding to the evolving demands of partner nations.
For Indonesia, the F-15EX offers a tested platform with the potential to enhance both its air defence and domestic manufacturing capabilities. Whether the country can turn this opportunity into a sustainable defence-industrial partnership remains to be seen.
The outcome of this deal may set a precedent for future defence collaborations, not only in Southeast Asia but across the global arms market.
