Indonesia has signed a Letter of Intent with Italy's Leonardo for the procurement of M-346F Block 20 aircraft, side-lining Pakistan's JF-17 Thunder from its fleet modernisation program.

This decision marks a pivotal shift for the Tentara Nasional Indonesia Angkatan Udara (TNI-AU), Indonesia's air force, as it seeks to replace its ageing fleet of BAE Systems Hawk jets.

The M-346F, a dual-role light combat and advanced trainer platform, offers versatility that aligns closely with TNI-AU's operational needs.

Pakistan's JF-17, jointly developed with China, had been a strong contender in Indonesia's competitive tender process. Yet, Leonardo's proposal edged ahead, reportedly due to superior technology transfer commitments and alignment with Indonesia's strategic partnerships.

The LoI was formalised recently, signalling TNI-AU's intent to acquire an initial batch of these aircraft. Each M-346F Block 20 features enhanced avionics, including an active electronically scanned array (AESA) radar, and multi-role capabilities for air-to-air and air-ground missions.

This upgrade will bolster Indonesia's pilot training pipeline while providing a lightweight fighter option for maritime patrol and close air support.

The Hawks, in service since the 1980s, have reached the end of their operational life, prompting urgent modernisation. TNI-AU operates around 16 Hawk MK-53s and MK-209s, many of which face maintenance challenges amid rising costs.

Transitioning to the M-346F ensures seamless integration, as its trainer variant shares design lineage with advanced jet trainers already in global use. Indonesia's choice reflects broader geopolitical realignments in Southeast Asia. Leonardo's bid gained traction through Indonesia's growing defence ties with Europe, including recent collaborations on frigates and helicopters.

Pakistan's JF-17, priced competitively at around $25-30 million per unit, promised offset deals but fell short on interoperability with TNI-AU's existing Western-origin platforms like F-16s. The M-346F, by contrast, integrates readily with NATO-standard systems, enhancing Indonesia's multi-domain operations.

Financially, the deal is estimated at $600 million for 24-32 units, including simulators and munitions packages. Leonardo has pledged local manufacturing involvement, potentially at Indonesian Aerospace (PTDI), fostering indigenous capabilities. This mirrors Indonesia's push for self-reliance under its Minimum Essential Force (MEF) program.

TNI-AU's fleet modernisation extends beyond trainers, encompassing Su-30MK and KFX/IF-X fighters. The M-346F slots in as a cost-effective bridge, with a unit flyaway cost under $25 million. Armament options include IRIS-T missiles, Brimstone, and precision-guided bombs, tailored for archipelagic defence. Pilot training benefits immensely, as the type's full-mission simulators reduce transition risks from Hawks.

Indonesia joins users like Israel, Poland, and Singapore, which operate M-346 variants in combat roles. Strategically, this procurement diversifies suppliers away from Chinese-influenced platforms like the JF-17. Amid South China Sea tensions, TNI-AU prioritises systems compatible with US and European allies.

Pakistan's exclusion may strain bilateral ties, though defence relations remain cordial in other domains. Jakarta had evaluated JF-17 during 2023-2024 trials, praising its agility but noting avionics gaps. Leonardo countered with live-fire demos showcasing the M-346F's beyond-visual-range capabilities. 

The LoI paves the way for a firm contract by mid-2026, with deliveries starting in 2028. This timeline aligns with Hawk phase-out, averting capability gaps. Indonesia's program underscores a preference for European technology amid ASEAN's defence diversification.

International Agencies