Jakarta: France and Indonesia have taken a significant step toward strengthening bilateral ties, signing a preliminary defence agreement that could pave the way for expanded military cooperation and new orders of French defence equipment, including Rafale fighter jets and Scorpene-class submarines.
French President Emmanuel Macron, standing alongside Indonesian President Prabowo Subianto at a joint press conference in Jakarta on Wednesday, announced the deal, calling it a “new perspective” for defence collaboration. The agreement could lead to future orders for Rafales, Scorpenes, and light frigates.
President Prabowo affirmed Indonesia’s intent to modernise its armed forces and enhance domestic defence capabilities through strategic partnerships. "France is a key partner in our efforts to develop our defence industry, particularly through joint manufacturing and technology sharing," he said.
Macron’s visit to Jakarta is part of a broader Southeast Asia tour, which follows a stop in Vietnam. He is expected to depart for Singapore on Thursday.
Shares in French aircraft manufacturer Dassault Aviation rose 3.4% in Paris following the announcement. The Rafale’s performance has come under scrutiny recently amid reports that Indian Rafales were outmatched by Pakistan’s Chinese-made jets in aerial confrontations.
Indonesia has not yet received any of the Rafale jets ordered under a 2022 contract. According to the Indonesian Air Force Chief, six of the jets are expected to be delivered in early 2026.
In addition to the Rafale deal, Indonesia signed a 2024 agreement with France’s Naval Group to procure two Scorpene submarines. In 2023, the country also committed to buying 13 long-range air surveillance radars from French defence electronics firm Thales.
The two leaders also discussed global issues, including the ongoing conflict in Gaza. President Prabowo reiterated Indonesia’s long-standing stance on the Israeli-Palestinian conflict. “Indonesia is ready to recognise Israel and establish diplomatic ties, but only once Palestine is recognised by Israel,” he stated.
Macron reaffirmed France’s support for a two-state solution to the conflict.
Beyond defence, France and Indonesia signed over 20 memorandums of understanding (MOUs) valued at more than $11 billion, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
Among the economic deals was a key partnership between French mining firm Eramet and Indonesian sovereign wealth funds Danantara and INA. The three parties will explore building a strategic investment platform in the nickel industry, covering everything from raw extraction to downstream processing. The collaboration aims to support the supply chain for electric vehicle (EV) batteries.
Danantara’s Chief Investment Officer Pandu Sjahrir said the sovereign wealth funds will handle long-term investment, while Eramet will bring mining expertise and project execution capabilities.
Indonesia holds the world’s largest nickel reserves and is the top producer of the critical EV battery material.
Major French companies Danone and TotalEnergies also signed agreements.
The deals underscore a deepening strategic and economic partnership between France and the resource-rich Southeast Asian nation.
