JAKARTA: France and Indonesia have signed a preliminary defence pact that could lead to new orders of French military equipment, including Rafale fighter jets and Scorpene submarines, French President Emmanuel Macron said on Wednesday.
“I am delighted that the letter of intent signed today could open up a new perspective with new orders for Rafales, Scorpenes, light frigates,” Macron said at a joint press conference alongside Indonesian President Prabowo Subianto.
Prabowo said France was one of Indonesia’s main partners as it upgrades its military hardware and develops its defence industry through joint production and technology transfers.
Macron arrived in Jakarta from Vietnam on Tuesday night on the second leg of his Southeast Asia tour. The French president is scheduled to fly to Singapore on Thursday.
Two countries sign agreements, MoUs worth $11bn
Dassault Aviation shares were up 3.4 per cent in the morning session in Paris. The jets’ performance came under scrutiny last month after reports that Rafales used by the Indian air force were shot down by Pakistan’s Chinese-made jets in clashes.
Indonesia has yet to receive any of the Rafale jets from the 2022 deal. The chief of the Indonesian Air Force Mohamad Tonny Harjono said in February that six jets would arrive in early 2026, state news agency Antara reported.
Aside from the Rafale deal, Indonesia in 2024 struck an agreement with French state-owned shipyard Naval Group to buy two “Scorpene” submarines, and in 2023 announced the purchase of 13 long-range air surveillance radars from France’s Thales.
Agreements, MoUs
France and mineral-rich Indonesia also signed a host of other agreements and more than 20 MoUs worth at least $11 billion, said Indonesia’s chief economic minister at a business forum.
The MoUs included one on cooperation between French mining company Eramet and Indonesian sovereign wealth funds Danantara and Indonesia Investment Authority (INA).
The agreement aims to “explore the establishment of a strategic investment platform in the nickel sector, spanning upstream to downstream operations,” Eramet, Danantara and INA said in a joint statement.
The partnership aims to develop the raw materials needed for electric vehicle (EV) batteries and the statement said a preliminary assessment will be made to identify projects.
Published in Dawn, May 29th, 2025
